The Transfer of Property Act, 1882 deals with a) various specific transfers

relating to immovable property. b) general principles relating to the transfer

of movables and immovable property. Chapter II of The Transfer of Property
Act, 1882 deals with both movable and immovable property. Section 58 to
104 of the Transfer of Property Act, 1882 deals with mortgages and charges.

Mortgage under Transfer of Property Act,

1882
Section 58 to 104 of the Transfer of Property Act, 1882 deals with mortgages
and charges.

Below mentioned sections are important sections.

As per Section 58 of Transfer of Property Act, 1882 the following words are
defined

 Mortgage
A mortgage is the transfer of an interest in immovable property for the
purpose of securing the payment of money advanced, an existing or future
debt or the performance of an engagement which may give rise to a
pecuniary liability.

 Mortgagor and Mortgagee

The person who transfers the interest in an immovable property is called the
mortgagor.

The person to whom it is transferred is called the mortgagee.

 Mortgage Money
The principal money and interest of which payment is secured for time being
is called mortgage money.

 Mortgage Deed
The instrument by which the transfer is effected is called a mortgage deed.

Mortgage
A mortgage is a transfer of an interest in immovable property and it is given
as a security for a loan. The ownership of an immovable property remains
with the mortgagor itself but some interest in the property is transferred to
the mortgagee who has given a loan.
Essential conditions of a mortgage:

1. There is a transfer of interest to the mortgagee.

2. The interest created in specific immovable property.
3. The mortgage should be supported by consideration.

Kinds of Mortgage
As per Section 58 of Transfer of Property, there are six kinds of mortgages

Simple Mortgage
 Simple Mortgage is defined under Section 58(b) of Transfer of
Property Act, 1882.
 In a simple mortgage, the mortgagor does not transfer immovable
property to the mortgagee but agrees to pay the mortgage money.
 The mortgagee agrees on a condition that in the event of not paying
the mortgage money the mortgagee has every right to sell the
property and can use the proceeds of the sale and such a
transaction is called a simple mortgage.

Conditional Mortgage
 Mortgage by conditional sale is defined under Section 58(c) of
Transfer of Property Act, 1882.
 In this mortgagee places three conditions to the mortgagor, and the
mortgagee shall have the right to sell the property if:

1. mortgagor defaults in payment of mortgage money on a certain

date.
2. as soon as the payment is made by the mortgagor the sale shall
become void.
3. on the payment of money by the mortgagor, the property is
transferred and such a transaction is called a mortgage by
conditional sale.

Usufructuary Mortgage
 Usufructuary Mortgage is defined under Section 58(d) of Transfer of
Property Act, 1882.
  In this mortgage, the mortgagor delivers the possession of the
property to the mortgagee and authorises the mortgagee to retain
such property until the payment is made by the mortgagor and
further authorise him to receive the rent or profit arising from such
mortgaged property and to appropriate the same instead of
payment of interest. Such a transaction is called a Usufructuary
transaction.

English Mortgage
 English Mortgage is defined under Section 58(e) of Transfer of
Property Act, 1882.
 In this mortgage, the mortgagor transfers the property absolutely to
the mortgagee and binds himself that he will repay the mortgage
money on the specified date and lays down a condition that on
repayment of money mortgagee shall re-transfer the property. Such
a transaction is called an English mortgage transaction.

Deposit of title-deeds
 Deposit of title -deeds are defined under Section 58(f) of Transfer of
Property Act, 1882.
 In this mortgage where a person is in Calcutta, Madras, Bombay and
in any other towns as specified by the state government and the
mortgagor delivers to a creditor or his agent the documents of title
of immovable property with an intent to create security and then
such a transaction is called Deposits of title-deeds.

Anomalous Mortgage
 An Anomalous Mortgage is defined under Section 58(f) of Transfer of
Property Act, 1882.
 A mortgage which is not any one of the mortgages mentioned above
is called an anomalous mortgage.

Rights and Liabilities of Mortgagor and

Mortgagee
Rights of Mortgagor

Right of Redemption
As per Section 60 of the Transfer of the Property Act, 1882 one of the
important rights of the mortgagor is the right to redeem the mortgage.

 Once the money has become due on the specified date the
mortgagor has the right to get back the mortgaged property on
paying the money to the mortgagee.
 Right to redemption is a statutory and legal right which cannot be
extinguished on the entering into any agreement.

Right to transfer to a third party

 As per Section 60A of the Transfer of Property Act, 1882 the
mortgagor may direct the mortgagee to assign the mortgage debt
and authorise him to transfer the property to a third party instead of
transferring him the same.
 The object of this section is to enable the mortgagor to pay off the
debt of the mortgagee by taking a loan from another person on the
security of the same property.

Right to inspection and production of

documents
 As per Section 60B of the Transfer of Property Act, 1882 the
mortgagor may inspect anytime the document of title relating to the
mortgaged property which is in the custody of the mortgagee.
 The costs and expenses incurred while inspecting the documents
may be borne by the mortgagee.

Right to accession
 As per Section 63 of the Transfer of Property Act, 1882 during the
subsistence of the mortgage if any accession is made to the
mortgaged property where the property is in possession of the
mortgagor itself and then the mortgagor has a right to take in
accession after the redemption of the mortgage.
 Accession can be of two types:

1. Natural accession.
 2. Acquired accession.

Right to improvement
 As per Section 63A of the Transfer of Property Act, 1882 during the
subsistence of the mortgage if any improvement is made to the
property where the property is in possession of the mortgagee and
then the mortgagor has a right to take the improvements made to
the property upon the redemption.
 But where the improvements were at cost of the mortgage by
preserving the property from destruction then the mortgagor is
liable to pay the cost which is incurred by the mortgagee in
preserving the property.

Right to a renewed lease

 As per Section 64 of the Transfer of Property Act, 1882 where the
property which the mortgagor has given for mortgage is a leasehold
property if the mortgagee renews the leases during the subsistence
of mortgage the mortgagor shall obtain the benefit of the lease upon
the redemption of the mortgage.

Right to grant a lease

 As per Section 65A of the Transfer of Property Act, 1882 a
mortgagor shall have the right to grant a lease of which is lawfully in
possession with the mortgagee and such lease shall be binding on
the mortgagee subject to the following conditions:

1. lease shall be according to the local laws, custom or usages.

2. no rent or premium shall be paid in advance.
3. the lease shall not contain a covenant for renewal.
4. the lease shall come into effect within six months from the date on
which it is made.
5. in case lease of buildings, the duration of the lease shall not exceed
not more than three years.
Liabilities of Mortgagor
Section 65 and 66 of the Transfer of the Property Act, 1882 deals with the
liabilities of the mortgagor.

Section 65 is the implied liabilities which are laid upon the mortgagor. Subject
to the contrary, every mortgagor is deemed to have made the following
covenant.

a. Covenant for title

 As per Section 65(a) of the Transfer of the Property Act, 1882 there
is an implied covenant that the mortgagor transferring the interest
in the property to the mortgagee belongs to the mortgagor only.
 And it is necessary that the mortgagor possess the transferable
interest in the property.
 In case mortgagor makes a breach in the covenant the mortgagor is
liable to compensate.

b. Covenant for the defence of the title

 As per Section 65(b) of the Transfer of the Property Act, 1882 the
mortgagor has a duty impliedly to either defend the title if anyone
tries to take away the title from the mortgagee or help the
mortgagee in defending the title.
  By doing so, the mortgagor bears all the expenses incurred while
defending the title.

c. Covenant for payment of public charge

 As per Section 65(c) of the Transfer of the Property Act, 1882 there
is an implied duty to the mortgagor that upon the execution of the
mortgage the mortgagor shall pay all the necessary changes.
 If the mortgagor fails to meet the required charges the property
would be sold by the public authorities and realise the charges.

d. Covenant for payment of rent

 As per Section 65(d) of the Transfer of the Property Act, 1882 where
the property mortgaged by the mortgagor is a leasehold property
there is an implied duty of the mortgagor to pay the rent of the
mortgaged property.

e. Covenant for the discharge of prior

mortgage
 As per Section 65(e) of the Transfer of the Property Act, 1882 there
is implied duty of the mortgagor to discharge the prior mortgage if
any.
 There is always a presumption that the mortgagor has a covenant
with the subsequent mortgages to pay off the mortgage on
becoming due.
 In such subsequent mortgage if the mortgagor makes a breach the
subsequent mortgagee would have the right to sue for his
mortgaged money.

Mortgagors liability for waste

 Section 66 of the Transfer of the Property Act, 1882 states there is
an implied duty on mortgagor that he shall not do any act which is
injurious or destructive to the mortgaged property.
 Mortgagee should also see that he also does not commit any act
which results in reducing the value of the mortgaged property.
 Following activities are considered as waste by the mortgagor:

1. Removing valuable fixtures from the mortgaged property.

 2. Pulling down the mortgaged house and taking the price of the
materials.
3. Cutting down the timber from the mortgaged property.
4. Mining under the mortgaged building which as a result may lead to
placing the building in the danger.
5. Working new mines on the mortgaged property.

 Whether any particular activity is considered as waste or not

depends on the degree of the loss of the mortgaged property.
 The mortgagor is liable only for the active waste and not the
permissible waste.

Rights and Liabilities of Mortgagee

The rights and liabilities of a mortgagee are given from Section 67 to 77 of
Transfer of Property Act, 1882.

Rights of Mortgagee in Possession

Right to foreclosure or sale

 As per Section 67 of the Transfer of Property Act, 1882 the
mortgagee has a right to foreclosure or sale.
 When the mortgagor does not pay the mortgage money after the
specified date is over and the mortgagor’s right to redeem the
mortgaged money has become complete but he has failed to avail
that right then mortgagee gets a right to institute suit for a decree
that the mortgagor is absolutely debarred of his right to redeem the
property.
 The difference between the right to redemption and right to
foreclosure is that the former is an absolute right whereas the right
to foreclose is not.
 The mortgagor cannot limit the right of redemption but the right to
foreclose can be made subject to a contract between the parties.

Right to sue
 As per Section 68 of the Transfer of Property Act, 1882 the
mortgagee has every right to sue for the mortgaged money.
 The mortgagee can sue for mortgaged money in the following
circumstances:
 1. where mortgagor binds himself to repay the money to the
mortgagee.
2. where the property mortgaged by the mortgagee has been
destroyed either wholly or partially without the fault of the
mortgagee.
3. where the property mortgaged, the mortgagee is deprived of the
security due to some wrongful act done by the mortgagor.
4. where the mortgagors fail to deliver the possession to the
mortgagee.

Right to sell
 As per Section 69 of the Transfer of Property Act, 1882 the
mortgagee has every right to sell the mortgaged property if the
mortgaged money has not been received
 This right can be exercised by the mortgagee when the mortgagor
makes a default in payment of the mortgaged money after the
specified date is over.
 This right can be exercised without the intervention of the court but
only in the following cases:

1. if the mortgage is an English mortgage both the mortgagor and

mortgage should not be Hindu, Muslim, Buddhist, or a member of
any other race as specified by the state government;
2. when there is a contract between the mortgagor and mortgagee the
sale would take place without the intervention of the court in case of
default in payment of mortgaged money;
3. to exercise the above right the mortgaged property should be
situated either in Calcutta, Madras, Bombay, Ahmedabad, Kanpur,
Allahabad, Lucknow, Coimbatore, Cochin and Delhi.

Conditions to exercise of Power

Before the sale proceeding can take place the mortgagee has to fulfil the
following conditions:

 The notice has to be served on the mortgagor in writing and three

months have to be elapsed from sending the notice.
 When the money is unpaid for three money and mortgaged money
is at least INR 500 in arrear.
Right to appoint a receiver
 A receiver is appointed only if there happens to be a sale under
Section 69 of the Transfer of Property Act, 1882.
 The appointment of the receiver is made according to the
mortgaged deed.
 The person appointing as a receiver should be willing to act as a
receiver if he is unable to act as a receiver then the mortgagee can
appoint the receiver if the mortgagor agrees. In case the mortgagor
does not agree to the appointment made by the mortgagee then the
mortgagee can apply to the court for the appointment.
 The money received by the receiver shall distribute for the following
to below case

1. he may discharge all the rents, taxes, land revenues, and any other
charge which is affecting the property.
2. he can claim back the payment along with the interest.
3. he can keep a sum of money as commission and he may pay
premiums on the various insurances insured.

Right to accession to mortgaged property

 As per Section 70 of the Transfer of Property Act, 1882 if there is a
contract between the mortgagor and mortgagee that after the date
of mortgage that the mortgagee shall have the right to the
accession made to the mortgaged property then the mortgagee
shall have right to all the accessions made.

Right of Mortgage to spend the money

 As per Section 72 of the Transfer of Property Act, 1882 the
mortgagee has a right to spend the money when it is necessary.
There are few circumstances in which the mortgagee has a right to spend
the money:

1. the mortgagee can spend the money on preserving the mortgaged

property from destruction, forfeiture and sale.
2. the mortgagee can spend the money if circumstances arise to
protect the mortgagor’s title to the property.
3. when the mortgaged property happens to be a renewable leasehold
property.
4. the mortgagee can spend the money on insuring the mortgagor’s
property.
Right to proceed of revenue sale or
compensation on acquisition
 As per Section 73(1) of the Transfer of Property Act, 1882 if the
mortgaged property is sold due to the non-payment of government
dues then the mortgagee shall have every right to claim back his
mortgaged money from such sale.
 As per Section 73(2) of the Transfer of Property Act, 1882 if the
mortgaged property is acquired under the land acquisition act or any
other act and the compensation is paid the mortgagee can claim his
debt from such compensation.

Liabilities of Mortgagee in Possession

As per Section 76 of the Transfer of Property Act, 1882 list down the duties of
the mortgagee who is in possession of the property which belongs to the
mortgagor.

The duties mentioned under are the statutory duties except for the duties
which are mentioned under clauses (c) and (d) the duties under these clauses
are mentioned in the contract by the parties.

Duty to manage the property

 The mortgagee has a duty to take reasonable care in the property of
the mortgagor.
 Though he has a liability to take reasonable care in the property the
mortgagee is not bound by the directions given by the mortgagor
and the mortgagee has acquired absolute rights in managing the
property.
 The only condition which is put forward by the mortgagor is that he
cannot lease the property beyond the termination of his interest in
the mortgaged property.

Duty to collect rents and profits

 The mortgagee who is in possession of the mortgagor’s property can
collect the rent and profits arising from the property.
 One outstanding feature of usufructuary mortgagee is the rent and
profits collected from the property are appropriated by the
mortgagee instead of payment of interest.
  Mortgagee becomes liable for the collection of rent and profit only to
the property which he is liable to acquire the rent and profits and
not liable for the whole rental property.

Duty to pay rent, revenue and public charges

 If there is an agreement between the mortgagor and mortgagee that
the mortgagee has to pay the rents, revenue, taxes and outgoings
then the mortgagee is liable to pay all of them which have been
agreed by him.
 The mortgagee is not allowed to take the benefits without paying
the taxes etc.
 In case the money which has been obtained from the property is
insufficient for paying the charges, he may pay out of his own
pocket and later add the amount which has been paid by him to the
debit account.

Duty to make necessary repairs

 If there is an agreement between the mortgagor and mortgagee that
the mortgagee is bound to carry out all the necessary repairs in the
property then the mortgagee is liable to take care of the necessary
repairs.
 The necessary repairs in the property are to be made only when
there is a surplus amount from the rents and profits.

Duty not to commit any destructive act

 While the property is in the mortgagee’s possession he is prevented
from committing any act which is either in destructive nature or is
injurious to the mortgaged property.
 He is prohibited from carrying out any acts which may result in
reducing the value of the property.
 If the property is destroyed because of acts of god then the
mortgagee is not liable for the property.

Duty towards the proper use of insurance

money
 Where the mortgaged property has been insured against loss by fire
it is the duty of the mortgagee to apply for the insurance money in
restoring the property.
  The mortgagee is also bound to apply the money received under the
insurance policy in reinstating the property.
 The property which is to be insured only for the two-third of its
value.

Duty to keep the accounts

 The mortgagee has a statutory duty under this provision in keeping
the correct accounts of all incomes arose and expenses incurred by
the mortgagee.
 The only exception is when the mortgagee is entitled to adjust the
income against the interest he is not allowed to give full accounts
because something there may be no money left to use for other
expenses.

Duty to apply rents and profit

 This clause provides the manner in which the mortgagee who is in
possession of the property has to apply for rents and profits during
the mortgage.

Essential doctrines under mortgage

Doctrine of Priority
 The doctrine of Priority is provided under Section 78 and 79 of the
Transfer of Property Act, 1882.
 This doctrine is based on the principle “quite prior est tempore
potior est jure”.
 It means that first in time prevails over the other.
 Where the immovable property is transferred by the mortgagor to
different mortgagees the successive mortgagee is paid only after
the prior mortgagee is satisfied.
 Section 48 of the Transfer of Property Act, 1882 is an exception to
this section.
 As per Section 78 of the Transfer of Property Act, 1882 in case a
prior mortgage suffers from fraud, misrepresentation or gross
neglect then the subsequent mortgage shall have priority over the
prior mortgage.
Doctrine of Marshalling
 Marshalling is defined under Section 81 of the Transfer of the
Property Act, 1882.
 In simple terms, marshalling means arranging things.
 The doctrine of marshalling means when there are two or more
properties which belong to the mortgagor and the mortgages those
properties to one mortgagee and then subsequently mortgage those
properties which have been mortgaged to another mortgagee.

Charge under Transfer of Property Act, 1882

Section 100 to 101 of the Transfer of Property Act, 1882 deals with Charges of Immovable
property.

Charge
According to Section 100 of the Transfer of Property Act, 1882 Charge means where the
immovable property is transferred by one party to another party for the security of payment
of money. The transaction does not amount to a mortgage and all the provisions which are
applicable to simple mortgages shall apply to the charge. The charge does not transfer any
interest in favour of the charge holder but he has the right to recover his money from the
property.

Essential points to take into consideration as mentioned under Section 100 of Transfer of
Property Act, 1882:

1. A charge can be created either by an act of parties or through the operation of law.
2. It is created as a security for payment of money.
3. The transaction which is created does not amount to a mortgage.
4. A charge can be enforced by a suit.
5. A charge may be extinguished either by an act of parties by way of the release of debt or
by a novation or by a merger.

Distinctions between a mortgage and a charge

Mortgage Charge

A charge which is created as security for the

A mortgage is always created only for the payment of a debt. payment of money may not always be for
debt.
 In a mortgage, there is an agreement between the parties that a In charge, there is no such formal agreement
pasty will pay the money. between the parties.

It is said that every mortgage is a charge. Every charge is not a mortgage.

A mortgage involves the transfer of an interest in an immovable In charge, there is no transfer of an interest in
property. favour of the charge holder.

A simple mortgage can be enforced within 12 years and a

mortgage other than a simple mortgage can be enforced within A charge can be enforced within 12 years.
30 years.

Distinctions between charge and lien

Charge Lien

A charge can be created either by the act of the parties

A lien can be created by only the operation of law.
or by operation of law.

A lien can be created either on movable property and

A charge can be created only on immovable property.
immovable property.

A charge is not possessory in nature. A lien is possessory in nature.

No merger in case of subsequent

encumbrance
According to Section 101 of Transfer of Property Act, 1882 states the mortgagee of
immovable property or the person who is having a charge on the immovable property or the
transferee from such mortgagee or charge-holder may acquire the rights in the property of the
mortgagor without merging the mortgage or the charge as between:

1. himself and the subsequent mortgagee of the same property.

2. himself and a person having charge upon the same property.
Such subsequent mortgage or charge cannot be sold or foreclose without redeeming the prior
mortgage or charge.

Conclusion
The concept of mortgage is one of the important concepts under the Transfer of Property Act,
1882 as it helps in securing the debt to the mortgagor and also helps in redeeming the
property as soon as the mortgagor pays back the amount due to the mortgagee.

References
 Textbook on Transfer of Property Act, 1882 by Dr. Avtar Singh.

 Textbook on Transfer of Property Act, 1882 by Abinav Misra.

The rights and liabilities of the mortgagor and mortgagee are of

paramount importance in the realm of property transactions and
financial lending.
The term “mortgage” can be understood as the transfer of an
interest in the property, commonly known as collateral, from the
borrower (mortgagor) to the lender (mortgagee) as security for a
loan. This arrangement safeguards the lender if the borrower fails to
repay the loan or becomes insolvent, as the lender gains rights over
the mortgaged property.
The legal framework governing mortgages includes Section 58-104
of The Transfer of Property Act 1882 and The Indian Contract Act
1872.

Who is a Mortgagee?
The mortgagee, also known as the lender, can be an individual, a
group of individuals, or an organization that extends a loan to the
borrower. In return, the mortgagee receives the mortgage as
security for the principal amount and the interest, collectively called
mortgage money. The formal document that effectively transfers the
mortgage to the mortgagee is the mortgage deed.
Who is a Mortgagor?
On the other hand, the mortgagor is the borrower who transfers
the immovable property to the mortgagee. The mortgagor must repay
the principal amount and the interest unless a contradictory contract
is in place. If the mortgagor fails to fulfil these obligations, the
mortgagee gains ownership of the mortgaged property and can
recover the mortgage money through its sale.
For instance, let’s consider an example where A lends B an amount
of rupees 50 lahks, and in return, B transfers his ancestral house (an
immovable property) to A as security. In this scenario, A is the
mortgagee, and B is the mortgagor.
Rights and Liabilities of Mortgagor and Mortgagee
The rights and liabilities of mortgagor and mortgagee are:
 Rights and Liabilities of Mortgagor
Rights of Mortgagor
The Transfer of Property Act 1882 grants the mortgagor (the
borrower) several rights to protect their interests. These rights
include:
 Right to redemption
 Right to transfer mortgaged property to a third party instead of
retransferring
 Right of inspection and production of documents
 Right to accession
 Right to improvements
 Right to a renewed lease
 Right to grant a lease
Right to Redemption (Section 60)
The right to redemption is a vital right granted to the mortgagor
under Section 60 of the Act. This right allows the mortgagor to bring
the mortgage to an end by reclaiming full ownership of the
mortgaged property. The right to redemption encompasses three
key rights for the mortgagor:
 Right to Terminate the Mortgage: The mortgagor has the right
to end the mortgage arrangement by repaying the mortgage debt
and any outstanding interest to the mortgagee.
 Right to Transfer Mortgaged Property: The mortgagor has the
right to transfer the mortgaged property back into their name or to
any other person’s name upon redemption. This enables the
mortgagor to regain full legal ownership of the property.
 Right to Reclaim Possession: If the mortgagor delivered
possession of the property to the mortgagee, the right to
redemption entitles the mortgagor to take possession of the
property upon redemption.
In the case of Noakes & Co. vs. Rice (1902) AC 24, the court
clarified that any provision or condition restricting the mortgagor’s
right to redeem the mortgaged property is considered a “clog” on
the right of redemption and invalid. This principle was established to
protect the interest of the mortgagor. The right to redemption
persists even if the mortgagor fails to repay the loan amount.
Provisions in the mortgage deed that obstruct or impede the right to
redemption are deemed void, as seen in the case of Stanley v.
Wilde (1899) 2 Ch 474.

@@@@@@@@@@@@@@@
 Rights of a Mortgagor
The TPA offers privileges to a mortgagor in a mortgage-deed under Section 60 - 66,
which are as follows:
 Right of mortgagor to redeem (Section 60)
 Right to transfer to the third party (Section 60A)
 Right to inspection and production of documents (Section 60B)
 Right to redeem separately or simultaneously (Section 61)
 Right of usufructuary mortgagor to recover possession (Section 62)
 Accession to mortgaged property (Section 63)
 Improvements to mortgaged property (Section 63A)
 Renewal of Mortgaged Lease (Section 64)
 Implied Contracts by Mortgagor (Section 65)
 Mortgagor's power to lease (Section 65A)
 Waste by mortgagor in possession (Section 66)]
These provisions are explained as follows:
 Right of Mortgagor to Redeem (Section 60)
 This provision provides that upon providing reasonable notice regarding the specified time
and location, the mortgagor has the entitlement to redeem the mortgage by paying the
outstanding mortgage amount and:
o Require the mortgagee to deliver the mortgage-deed and the mortgaged property and
documents in his possession or under his power.
o Recover the possession of the mortgaged property from the mortgagee.
o To get the property re-transferred to him or a third person at his own cost by the mortgagee at
the mortgagor's desire or get an acknowledgement registered by the mortgagee extinguishing his
right over the property.
 The right of redemption cannot be enforced if it has been extinguished by the right of
parties or decree of court.
 The suit filed under this Section called the Suit for Redemption.

Case Law:

Stanley v. Wilde, (1899), the English Court of Appeal held that any provision mentioned in the mortgage-deed which has an effect of preventing or impeding the right to redemption is void as a clog on redemption.

Sant Ram v. Labh Singh (1964), SC has held that that a stipulation in a mortgage deed that the mortgagor would lose his right to redeem if he did not repay the mortgage amount within a certain period was an unreasonable clog on the right to redemption. The court em
manner.

 Right to Transfer to the Third Party (Section 60A)

o As per this section, the mortgagor possesses the right to request the transfer of both the
mortgage deed and the mortgaged property to a third party as per the mortgagor's
preference.
o If the mortgagor has fulfilled his obligation by paying the mortgage amount, it is obligatory for the
mortgagee to comply with this request.
 Right to Inspection and Production of Documents (Section 60B)
o The mortgagor, exercising their right to redemption, can, at their own expense, request to
inspect and obtain copies or extracts of the documents pertaining to the mortgaged property
and the mortgage deed held by the mortgagee, upon successfully reimbursing the expenses
incurred by the mortgagee on their behalf, at any reasonable time.
 Right to Redeem Separately or Simultaneously (Section 61)
o In the absence of a contractual agreement, when multiple mortgages are executed in favor of the
same mortgagee, the mortgagor has the right to redeem one or more of these mortgage deeds
simultaneously or any one deed separately upon payment of the outstanding dues for the
specific mortgage(s).
 Right of Usufructuary Mortgagor to Recover Possession (Section 62)
o In a usufructuary mortgage, the mortgagor has a right to recover possession of the mortgage
deed from the mortgagee
 Where the mortgagee is authorised to pay himself the mortgage-money from the rents and profits
of the property when such money is paid.
 Where the mortgagee is authorised to pay himself from such rents and profits or arty part thereof
a part only of the mortgage-money, when the term (if any), prescribed for the payment of the
mortgage-money has expired and the mortgagor pays or tenders to the mortgagee the
mortgage-money or the balance thereof or deposits it in Court as hereinafter provided.
 Accession to Mortgaged Property (Section 63)
o The mortgagor is entitled to the mortgaged property accession upon redemption, if any, during
the mortgage's continuance when in possession of the mortgagee if a contract for the contrary
does not exist.
o The mortgagee has no right to claim the accession when redeemed by the mortgagor.
 Improvements to Mortgaged Property (Section 63A)
o If a property is mortgaged, and the mortgagee makes improvements to the property while
holding it as security, the mortgagor has a right to those improvements when they redeem
the property. This entitlement exists unless there is a specific contract stating otherwise.
o If the mortgagee makes necessary improvements to preserve the property from damage or
deterioration, to maintain the property's value as security, or in compliance with a lawful order
from a government authority, the mortgagor is generally responsible for paying the cost of
those improvements.
o This cost is added to the principal amount of the mortgage, and the mortgagor must pay
interest on it at the same rate as the principal amount.
 Renewal of Mortgaged Lease (Section 64)
o If a mortgaged property is in the possession of the mortgagee and has a lease in
existence, and the mortgagee renews the lease during the mortgage period, the mortgagor
has the right to receive the benefits of that lease renewal, unless there is a specific provision
in the mortgage contract that states otherwise.
 Implied Contracts by Mortgagor (Section 65)
o In the absence of a contract to the contrary, the mortgagor shall be deemed to contract
with the mortgagee:
 That the interest which the mortgagor professes to transfer to the mortgagee subsists, and
that the mortgagor has power to transfer the same.
 That the mortgagor will defend, or, if the mortgagee be in possession of the mortgaged
property, enable him to defend, the mortgagor’s title thereto.
 That the mortgagor will, so long as the mortgagee is not in possession of the mortgaged
property, pay all public charges accruing due in respect of the property.
 In the case where the mortgaged property is a lease, it is essential that the rent specified in
the lease, the terms and conditions outlined in the lease agreement, and any commitments
binding upon the lessee have all been fully met, performed, and adhered to up to the point
when the mortgage was initiated.
 Furthermore, the mortgagor is obligated, as long as the mortgage security remains valid and
the mortgagee is not in possession of the mortgaged property, to continue paying the rent as
stipulated in the lease.
 If the lease is renewed, the mortgagor must also adhere to the terms of the renewed lease,
fulfill the conditions specified therein, and honor any contracts that apply to the lessee.
 Additionally, the mortgagor is responsible for indemnifying the mortgagee against any
losses or claims that may arise due to the non-payment of the aforementioned rent or the
failure to perform or adhere to the specified conditions and contracts.
o Where the mortgage is a second or subsequent incumbrance on the property, that the
mortgagor will pay the interest from time to time accruing due on each prior
incumbrance as and when it becomes due and will at the proper time discharge the principal
money due on such prior incumbrance.
 Mortgagor's Power to Lease (Section 65A)
o While in lawful possession of the property, the mortgagor has the right to make the lease,
which shall be binding on the mortgagee unless otherwise stated in the mortgage.
 The lease made shall be dealt with in a regular manner of management of the property and
as per the customs and local law.
 The best rent shall be obtained, with no promise of premium or condition of advance payment.
 It shall not contain an agreement for renewal.
 The lease shall take effect from no longer than six months from the day of formation of the
lease.
 In the case of the lease of a building with or without land, the lease shall not exist for more
than three years, and the lease shall contain a covenant for payment of the rent and a condition
of re-entry on the rent not being paid within a time therein specified
 Right in the Case of Waste (Section 66)
o Based on this provision, the mortgagor is generally not held responsible for any natural
deterioration of the property.
 However, the mortgagor must refrain from taking any actions that could result in
catastrophic or irreversible damage to the property, especially if such damage would
render the property inadequate as collateral for the mortgage.

Liabilities Of a Mortgagor
 Covenant for the Title
o In a situation where the mortgagor has entered into an agreement with the mortgagee to transfer
the property, and this agreement includes a warranty concerning the property's title, if it is
subsequently discovered that the title of the mortgaged property is flawed or defective,
the mortgagee has the legal right to initiate legal action against the mortgagor.
o In this action, the mortgagee can seek not only the repayment of the principal amount but
also claim damages for any losses incurred as a result of the defective title.
 Liability to Indemnify for Defective Title
o If it is determined that the property title held by the mortgagor is flawed or defective, the
mortgagor is responsible for compensating the mortgagee for any damages incurred.
o These damages typically cover the expenses and costs that the mortgagee has had to bear
in order to assert their rightful claim to the property title.
 Liability to avoid waste (Section 66)
 The mortgagor is liable if he acts in a way that leads to waste of property or destroys or injures
the property, reducing its value and making it insufficient for security.
 Waste is of two types:
 Permissive Waste: It is the small waste for which the mortgagor is not liable for; like failure to
maintain ordinary repairs.
 Active Waste: When destruction of property causes greater waste, reducing the value of the
property, the mortgagor is liable.
 Improvements to Mortgaged Property (Section 63A)
o If improvements are made to the mortgaged property during the term of the mortgage and they
are necessary, the mortgagor is responsible for covering the expenses incurred for these
improvements.
o In cases where improvements are essential to prevent the property from being destroyed, and
these improvements are carried out by the mortgagee, the mortgagor is obligated to cover the
cost of these improvements. This cost is added to the original mortgage amount, along with the
principal, unless there is a specific contract stating otherwise.
o If the mortgagee is in possession of the property and covers the property taxes, the
mortgagor is responsible for reimbursing the mortgagee for these expenses.
 However, if the property is in the mortgagor's possession, they are obligated to pay all property
taxes and any public charges associated with the property.