This chapter discusses the account of profits, disgorgement, and other forms of gain-based relief. It will consider the difference between compensation, restitution and disgorgement. It will then consider the account of profits, and the operation of bars to relief and other limiting factors.

The primary rationales of the account of profits have been identified as deterrence and prophylaxis (that is, preventing a defendant from gaining from wrongdoing). Deterrence looks not to the dispute in question, but to the future conduct of the specific defendant (specific deterrence) and the future conduct of other potential defendants (general deterrence). By stripping the defendant of her gain (or part of her gain), the defendant (and other potential defendants) will be deterred from engaging in similar conduct in the future. It is argued that the remedies discussed in this chapter have a deterrent flavour.

In certain situations, equity orders the defendant to make payments to the plaintiff as a remedy for the wrong done. These are orders for the defendant to account for profits made, or pay equitable compensation to the plaintiff. These remedies impose a personal obligation on the wrongdoer to pay and do not per se attach to property. This is their disadvantage compared to proprietary remedies in the case of the defendant’s insolvency. The remedies perform substantially different tasks. We will now look at each remedy in turn.

On 3 December 1971, for the third time since the partition of British India in 1947, Pakistan and India went to war. In the words of the political scientist Sumit Ganguly, Pakistan’s pre-emptive air strikes on Indian air bases ‘failed miserably on all counts’. India retaliated with a combination of its own air strikes, naval bombardments, and land operations using tanks, artillery, paratroopers and six infantry divisions. The fighting, most of which took place in East Pakistan (present-day Bangladesh), showcased India’s military superiority over its neighbour and continued until 17 December when the Indian Prime Minister Indira Gandhi ordered a ceasefire. Pakistan’s President, Yahya Khan, recognising the resounding defeat of his forces, accepted the ceasefire, and the Indo-Pakistani War of 1971 ended.