SPECIAL

MORTGAGE AND CHARGE TRANSFERS - II

 CONTENT OUTLINE:
MODULE 11
● Mortgage
○ Analyzing the law governing mortgage in India.

MODULE 12
● Charges
○ Understanding the creation of charge and the law governing the
same.
○ Basic Reading: Sec. 100 of the Transfer of Property Act, 1882
 MORTGAGE
● Section 58 to 104 of the Transfer of Property Act, 1882 deals with mortgages and
charges.
● A mortgage is a kind of security given by the borrowed-debtor (mortgagor) for repayment
of the loan to the lender-creditor (mortgagee).
● The object of a mortgage is to secure the debt or other obligation.
● It protects a lender, for even if the borrower becomes insolvent the money can be realized
from the property given by way of security.

● 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.
 DEFINITION
● As per Section 58(a) of Transfer of Property Act, 1882 –
● 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.
 ESSENTIAL CONDITIONS OF A MORTGAGE
1. There is a transfer of interest to the mortgagee.
■ Some rights are transferred and some remain vested — The right to ownership does not pass
■ The right is merely an accessory right (to secure repayment of loan) — Right terminates with the payment of mortgage
money with interest.
■ For instance, A borrows money from B and undertakes to repay it within a period of one year. The agreement also provides
that if A is not able to arrange money, he would sell his property and repay the loan out of the sale proceeds. This is not a
transaction of mortgage, as no interest has been transferred in favour of the mortgagee.

2. The interest created in specific immovable property. (mentioned in deed)

■ Essential to specify the immovable property distinctly. - Sufficiently identified - Otherwise it would be void for vagueness.
■ For example : “All of my property”, “my house and land property”, “One of my seven properties” (General and Vague)
■ For example : “A house situated in City Centre” (Specify Property)

3. The mortgage should be supported by consideration. (Purpose of Mortgage)

■ Object being to secure debt (the payment of money advanced or to be advanced, an existing or future debt or , the
performance of an engagement which may give rise to a pecuniary liability).
● Nidha Sha v. Murlidhar (1903) 25 All 115
○ The transfer made by way of “discharging debt” is not mortgage.
 An existing or future debt ;
Money advanced or to be advanced
A executed a mortgage deed of his house for a loan of Rs. 10 lakh, in favour of B on 10 January 1990.
B promises to pay the money to A by 20 January 1990. The mortgage is effective from 10 January itself,
irrespective of the fact that money is yet to be advanced.
Even if B does not pay by the stipulated date, the mortgage does not become void.
● The remedy of the mortgagor in such cases would be to rescind the contract and claim damages.
● In the same example, if A sells the property on 15 January 1990, or even after 20 January 1990,
when the money was not paid, the sale would be subject to this mortgage.
● But where a person without advancing loan under a usufructuary mortgage sues for possession, he
would be denied a remedy as a mortgage cannot be without a consideration.

Performance of an engagement which may give rise to a pecuniary liability

For instance, A borrows seeds from B, and mortgages his field to secure its return. This undertaking to repay or return the
seeds is an engagement giving rise to a pecuniary liability. (Ram Chandra v. Ishwar Chandra AIR 1921)
 KINDS OF MORTGAGE
As per Section 58 of Transfer of Property, there are six kinds of mortgages:

● (b) Simple mortgage.— Where, without delivering possession of the mortgaged property,
○ the mortgagor binds himself personally to pay the mortgage-money,
○ and agrees, expressly or impliedly, that, in the event of his failing to pay according to his contract,
○ the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, so far as may be
necessary, in payment of the mortgage-money,
the transaction is called a simple mortgage and the mortgagee a simple mortgagee.
● Simple Mortgage [Sec. 58(b)] - REMEDIES AVAILABLE TO PARTIES :
○ Personal Liability - Suit for obtaining the money decree against the mortgagor - The mortgagee has an option here to proceed either against the mortgagor or against the mortgaged
property.
○ Suit for Foreclosure & Sale of Property - In a simple mortgage, the mortgagee agrees on a condition that in the event of not paying the mortgage money the mortgagee has every right to
cause the mortgage property to be sold and can use the proceeds of the sale and such a transaction is called a simple mortgage.
○ However, the possession of property is not given to mortgagee.
Kishanlal v. Gnaga Ram (1891) - Since the mortgagee is not in possession, he has no right to satisfy the debt out of rent and profits. He only acquires right to sale and that too only
through court.
○ Adverse Possession -
Nandan v. Juman (1912) - Adverse possession cannot extinguish the right of the mortgagee. (Though, Such a trespasser may, by prescription, become the owner of the limited estate of
equity of redemption which the mortgagor has in the property)
Balkrishan v. Mohsin Bhat, AIR 1999 - Where the mortgage is illegal for want of registration but the mortgagee continues in possession of the mortgaged property for a continuous period
of more than 12 years, a valid mortgage comes in existence after the expiry of 12 years.
● (c) Mortgage by conditional sale.—
○ Where, the mortgagor ostensibly sells the mortgaged property—
■ on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute,
■ or on condition that on such payment being made the sale shall become void,
■ or on condition that on such payment being made the buyer shall transfer the property to the seller,
○ the transaction is called mortgage by conditional sale and the mortgagee a mortgagee by conditional sale: [Provided that no such
transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect
the sale.]

● Conditional Mortgage (Mortgage by conditional Sale) [Sec. 58(c)] - REMEDIES AVAILABLE TO PARTIES :
○ No Personal Liability - Suit for obtaining the money decree against the mortgagor
○ Mortgage by conditional sale is an ostensible sale (appearance of sale but not really sale), which is to ripen into an absolute sale
on breach of any condition as to payment.
○ Mortgage & a Sale with a Condition of Repurchase - The sale is conditional and intended simply as a security for debt.
In cases of ambiguity, the court leans towards construction of mortgage. (Singaram v. kalyanam subhadra (1914))
Chennammal v. Munimalaiyan, AIR 2005
A executed a simple mortgage of three properties for securing the repayment of money that he borrowed from B. He was unable to repay the money by the stipulated
time and he entered into a second contract with B. As per this contract, he sold one out of the three properties to B with a right to repay within a period of three years,
for Rs. 3,000.
The possession of the property was delivered to B. A little period after the completion of three years, A filed a suit for redemption of the mortgage. B claimed that since
it was a sale with an option of re-purchase, and three years were over, A had lost the right to exercise the option of re-purchase.
The court held here that as the consideration was one-fourth of the value of the property, and the contract took place with the help of a single document, the
presumption was that it was a mortgage by conditional sale, and the right vested with the mortgagor to redeem the property when he was able to repay the
money.

Difference b/w Mortgage & a Sale with a Condition of Re-purchase :

1. Relation of Debtor & Creditor

2. Single Document - Separate Document
3. No Debt - But Consideration for Sale
4. Amount is far below the value of property - Near to Value of Property
5. In a mortgage with conditional sale, since this is a mortgage transaction, the right of redemption subsists in favour of the mortgagor despite the expiry of the
time stipulated in the contract for its payment. The mortgagor has the option to redeem the mortgage and take back the property on the payment of the
mortgage money, after the specified time, but in a sale with an option of repurchase, the original seller must re-purchase the property within the stipulated time
period. If he commits a default the option of re-purchase is lost.
 (d) Usufructuary mortgage.—
● Where the mortgagor delivers possession [or expressly or by implication binds himself to deliver possession] of the mortgaged
property to the mortgagee,
● and authorises him to retain such possession until payment of the mortgage-money,
● and to receive the rents and profits accruing from the property [or any part of such rents and profits
● and to appropriate the same] in lieu of interest, or in payment of the mortgage-money, or partly in lieu of interest [or] partly in
payment of the mortgage-money,
the transaction is called an usufructuary mortgage and the mortgagee an usufructuary mortgagee.

● Usufructuary Mortgage [Sec. 58(d)] - REMEDIES AVAILABLE TO PARTIES :

○ No Personal Liability - Suit for obtaining the money decree against the mortgagor.
○ In this mortgage, the mortgagor delivers the possession of the property to the mortgagee (or expressed or implied undertaking to
deliver such property) and authorizes the mortgagee to retain such property until the payment is made by the mortgagor.
○ and further authorize him to receive the rent or profit (usufruct) arising from such mortgaged property and to appropriate the same
for payment of mortgage money or interest or partly for mortgage money and interest.
The usufructuary mortgagee is entitled to be in possession of the mortgaged property as long as it is not redeemed and
where the mortgagee leases the property back to the mortgagor, he can sue the terms of the lease against the mortgagor.
If the mortgage is not in possession of loses possession he can sue to obtain the same and also mesne profits (past profits) he
can not sue for sale or foreclosure.
● A usufructuary mortgage and not a zuripeshgi Lease.
Zunipeshgi Lease bears a close resemblance to a usufructuary mortgage. A Zuripeshgi lease means a lease for a lump sum of money paid in advance.
In Nidha Sah v. Murli Dhar, (1903)
A executed a deed, called a mortgage deed of certain specific villages in favour of B for a period of 14 years in exchange of some financial obligations.
The deed provided that B was to retain the possession of the property for a period of 14 years and after that the financial obligation of A would come to an
end and the property would come back to A without any settlement of accounts.
B, at the end of 14 years, refused to part with the possession of the property on the ground that the quantum of property whose possession was delivered to him
was insufficient, and therefore he was unable to get his money back in full. He contended that his right of retention of property till the complete amount is
adjusted should be upheld. This was possible only if the transaction amounted to a usufructuary mortgage. The court dismissed his contention and held that this
was a transaction of zuripeshgi lease and was not a mortgage.
Here, there was no liability on A to repay the advance amount and the property was not given to B as a security for its repayment. Other instances of zuripeshgi
lease would be where the lease is not a security for the repayment of the money advanced.

Difference b/w usufructuary mortgage and zuripeshgi Lease

1. Relation of Debtor & Creditor

2. Inherent Right of redemption - The term ends & Property reverts
3. Security for Repayment (Mortgage) - Cultivation of Land at Rent (Lease)
4. Constructive Possession - Actual Possession
● (e) English mortgage.—
○ Where the mortgagor binds himself to repay the mortgage-money on a certain date,
○ and transfers the mortgaged property absolutely to the mortgagee,
○ but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage.

● English Mortgage [Sec. 58(e)] - REMEDIES AVAILABLE TO PARTIES :

○ Under an English mortgage the mortgagee acquires a right to take possession as soon as the mortgage is executed. For all practical purposes, he is the owner and the
mortgagor has a right in equity to redeem his property if he is able to repay the amount on a certain date. If he fails to repay the amount he would lose the right to
redeem.
○ As the mortgagor is transferring the immovable property absolutely to the mortgagee, like a proper sale transaction, the transaction will be subject to applicable stamp
duty on the market value of the property, on the date of execution of the documents of English mortgage.The sale agreement has details of the loan and all the terms
associated with it.
○ When the mortgagor repays the loan, the property is re-transferred in his/her name which attracts stamp duty and registration charges again.
○ In India, even if the mortgage is an English mortgage, the mortgagee cannot automatically convert the security into a sale.
○ 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.
○ Ramkinder v. Satyacharan (1939) 1 MLJ 554
The absolute here emphasizes the character of sale in English mortgage but does not suggest it is absolute transfer as an absolute transfer is can never be mortgage. (Passing
of interest and not whole property).
○ Unlike in mortgage by conditional sale, in English mortgage the mortgagor ordinarily undertakes to pay debt personally.
(f) Mortgage by deposit of title-deeds.—
Where a person in any of the following towns, namely, the towns of Calcutta, Madras, [and Bombay], [* * *] and in any other town which the [State Government concerned] may, by
notification in the Official Gazette, specify in this behalf,
delivers to a creditor or his agent documents of title to immoveable property, with intent to create a security thereon,
the transaction is called a mortgage by deposit of title-deeds.
○ Mortgage by Deposit of title-deeds - Equitable Mortgage [Sec. 58(f)]
○ 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.
○ The Delhi Land Reforms Act, 1954 bars creation of an equitable mortgage by deposit of title deeds. Section 34 of The Delhi Land Reforms Act, 1954 is relevant in this context. This Section
permits only a Simple Mortgage in case of agricultural land.
○ Any person in any of the notified towns can deliver to the Bank documents of title to the immovable property with intent to create security thereon. Before accepting the title documents, Bank
needs to ensure that :-
That the title documents being deposited are necessarily evidencing the title of the property.

The title documents are being deposited in a town which is notified by the State Government though the property may be situated somewhere else, may be in a town not so notified.

Original title documents are being deposited with intent to create equitable mortgage and not for safe custody.

The intention to create equitable mortgage is to secure payment for a debt.

○ While mortgage deed is registered with the concerned Sub Registrar of Assurances, original title documents along with chain of title documents are retained by the mortgagee so that the
mortgagor cannot create further interest or encumbrance in the property by deposit of title documents.
○ Under the mortgage by deposit of title deed the borrower just deposits his title deeds with the lender. Except in the state of Maharashtra, it does not have stamp duty and registration cost
implications, if it is done through recording of the transaction in the register of equitable mortgages maintained by the lender.
○ Verdu Seth Sam v. Kuckputty
○ Amulya Gopal Majumdar v United Industrial Bank
(g) Anomalous mortgage.—
A mortgage which is not a simple mortgage, a mortgage by conditional sale, an usufructuary
mortgage, an English mortgage or a mortgage by deposit of title-deeds within the meaning of this
section is called an anomalous mortgage.

● Anomalous Mortgage [Sec. 58(g)]

○ A mortgage which is not any one of the mortgages mentioned above is called an anomalous
mortgage.
CENTRAL REGISTRY
●To avoid fraudulent transactions by a borrower, the Government has established a Central Registry under Section 20 of the Securitization
Act.
●All charges created on immovable property – whether by individual or HUF or partnership firm or trust or a company is to be registered
with such Central Registry within 30 days of creation of charge.
●Any person can inspect the records of Central Registry to check if the property proposed to be mortgaged has been previously
mortgaged with any other bank or not.

IN CASE THE PROPERTY IS OWNED BY A COMPANY

●The company should have power to borrow – any object clause as contained in the Memorandum of Association of the company.
●The Board of Directors should pass a resolution for borrowing and to mortgage the property.
●Only authorized Director/person should execute the mortgage documents.
●Charge on the immovable property of the company is registered with the Registrar of Companies by filing E Form No.8 with the
Registrar of Companies within 30 days of creation of charge.
●Charge should also be filed with Central Registry.
 MODES
● 59. Mortgage when to be by assurance.—Where the principal money secured is one hundred
rupees or upwards, a mortgage [other than a mortgage by deposit of title deeds] can be effected
only by a registered instrument signed by the mortgagor and attested by at least two witnesses.
● Where the principal money secured is less than one hundred rupees, a mortgage may be effected
either by [a registered instrument] signed and attested as aforesaid or (except in the case of a simple
mortgage) by delivery of the property.

● Modes of Creation of Mortgage –

○ (A) By Assurance/Registration (When principal money secured is above one hundred rupees)
○ (B) By delivery of possession
○ (C) By deposit of title deed
 Section 60 to 65 A
Section 65 and 66
RIGHTS AND LIABILITIES OF MORTGAGOR
 RIGHTS OF MORTGAGOR
● Rights of Mortgagor ; Section 60 to 65 A

1. Right to redeem the mortgage

2. Right to inspection and production of documents relevant to the transaction of
mortgage.
3. Right to redeem the mortgage separately or simultaneously.
4. Right to appropriate accession, if any, to mortgage property.
5. Right to appropriate improvement, if any, to mortgage property.
6. Right to renewal of lease where the mortgaged property in leasehold.
7. Right to effect lease of mortgaged property.
 RIGHT TO REDEMPTION (SECTION 60)
● 60. Right of mortgagor to redeem.—
( When right to redemption arise)
● At any time after the principal money has become due, the mortgagor has a right, to require the mortgagee –
■ on payment or tender, of the mortgage-money,
■ at a proper time and place,

(Redemption consists of )
○ (a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the
possession or power of the mortgagee,
○ (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and
○ (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may
direct,
or to execute and to have registered an acknowledgement in writing that any right in derogation of his interest transferred
to the mortgagee has been extinguished (where the mortgage has been effected by a registered instrument) .
 (Limitation )
● Provided that the right conferred by this section has not been extinguished by act of the parties or
by decree of a Court.
(Definition)
● The right conferred by this section is called a right to redeem and a suit to enforce it is called a suit
for redemption.
(Requirement of Notice)
● Nothing in this section shall be deemed to render invalid any provision to the effect that, if the time
fixed for payment of the principal money has been allowed to pass or no such time has been
fixed, the mortgagee shall be entitled to reasonable notice before payment or tender of such
money.
(Redemption in Parts not allowed)
● Redemption of portion of mortgaged property.
Nothing in this section shall entitle a person interested in a share only of the mortgaged property to
redeem his own share only, on payment of a proportionate part of the amount remaining due on
the mortgage, except [only] where a mortgagee, or, if there are more mortgagees than one, all such
mortgagees, has or have acquired, in whole or in part, the share of a mortgagor.
 RIGHT OF REDEMPTION :
● Mortgagor’s right to redeem the mortgage property after repayment of loan is a right which rests
in him by virtue of his residuary of ownership in the property.

Jaya Singh v. Krishna AIR 1985

The right to redemption under a mortgage deed can come to an end only in manner known to law.
Jaimal v. State of HP, AIR 2010
There can be no contract to the contrary.

Bhkhtawar Begum v. Huussaini Khanum 1914 P.C.

Poulose v. State Bank of Travancore AIR 1989 Ker 79
● It may be noted that mortgagor is not entitled to redeem before the mortgage money has
become due i.e., before the time of payment of the mortgage-money. It continues till mortgagee
sues for enforcement of mortgage.
In Achaldas Durgaji Oswal v. Gangabisan Heda (2003)
FACTS : The facts of the case were that A had mortgaged his property for a period of five years in
favour of B. The mortgage executed was a usufructuary mortgage wherein the possession of the property
was delivered to the mortgagee. A failed to repay the loan within the stipulated period. The mortgagee
filed a suit for foreclosure and the mortgagor filed a suit for redemption of the property. The court
directed the mortgagor to deposit the money in the court within a period of three months, which he failed
to do. He deposited the amount after three years, and then applied for a final decree from the court.
The lower court rejected his prayer as being barred by limitation but the High Court reversed this
judgment.
The matter went to the Supreme Court and the court upheld the decision of the High Court and held that
the mortgagor has a right to redeem his property and despite the fact that he had committed a default in
its payment, he would not be debarred from redeeming his property.
The mortgagor had deposited the amount within the period of limitation for redemption of mortgage
under the Limitation Act, i.e., within 30 years. - Section 61
When the mortgage comes to an end with the exercise of the right of redemption by payment or deposit
of money, the contractual relationship of mortgagor and the mortgagee ceases.
 CLOG ON REDEMPTION
● Once a mortgage, always a mortgage - Harris v. Harris 1681
Noakes & Co. v. Rice (1902)
● laid down by Lord Davey - Mortgage can not be made irredeemable, Any stipulation which prevents the mortgagor,
who has paid the principal, interest and cost for getting back the property in the state in which he mortgaged it, is void

Bhandaru Ram Case, AIR 2012 HP 1

● The full bench decided once a mortgage, always a mortgage, the basis of this doctrine lies in the exercise equity,
justice and good conscience for the first laid down by Lord Nottingham in 1681 in case of Harris v. Harris 1681.
● On a realistic perusal of the workings of a mortgage, it is observed in most of the cases that the mortgagor enters into
such an agreement because of some financial predicament. The law recognizes the power of the dominant party to
insert clauses which will serve his personal interests by creating impediments on the right to redeem the property. Such
obstructions are henceforth struck down by the courts to enable the mortgagee to redeem his property.
In U. Nilan v. Kannayyan (Dead) Through Lrs
Explaining the philosophy behind the doctrine, it was said that – “Adversity of a person is not a boon for others. If a person
in stringent financial conditions had taken the loan and placed his properties as security therefor, the situation cannot be
exploited by the person who had advanced the loan. The Court seeks to protect the person affected by adverse circumstances
from being a victim of exploitation.”
● Once a mortgage, always a mortgage –
A mortgage is always redeemable. And a mortgagor’s right to redeem shall neither be taken away nor be limited by any
contract between the parties. The phrase also means that a mortgage would remain a mortgage and it cannot by the
unilateral act of mortgagee be converted into a sale.
○ Mortgage can not be made irredeemable, Any stipulation which prevents the mortgagor, who has paid the principal,
interest and cost for getting back the property in the state in which he mortgaged it, is void.

○ The right to redeem can not be separated from the transaction It is an incident of the transaction. (The only condition that
no redemption before the amount becomes due)

○ The right to redeem will include the right to take back possession, mortgage deed, title deeds etc.

Kerlinger v. New Patagonia Meat and Cold Storage Co. Ltd. (1914)
○ Lord Parker observed : If you come to a conclusion that the parties intended the property should be conveyed on
payment of secured money, any provision which would prevent this must be rejected as inconsistent with and repugnant to
the true intention of mortgage. But, on the other hand, if you once come to the conclusion that this was not the real
intention of the parties, then the transaction is not one of mortgage at all.
Subsequent Sale of Property
A mortgage is not automatically converted into sale in absence of a separate transaction despite a covenant to that effect
in the deed or an admission to that effect by the mortgagee.
However, a separate transaction of sale executed in connection with mortgage or a surrender is valid, and
extinguishes the mortgagor’s right of redemption.
For instance, A mortgages his land to B. The contract provides that in the event of non-payment of loan by five years, the
property would be treated as sold to B. On the expiry of five years, A himself executes a sale deed of the land in favour
of B. This sale deed is valid as it is not a part of the mortgage and is an independent transaction executed by A.

Limitation for Filing a Suit for Redemption

From the date the mortgagor becomes entitled to redeem the property, he can do so within a period of thirty years,
unless the mortgage has been foreclosed, after which both the right to sue for redemption and the right in property is
extinguished, except in case of a minor or where an acknowledgement is made during this period.
If there is no limitation or period prescribed for redemption of a usufructuary mortgage, the right of the mortgagor to
redeem the property is a continuing one and is not subject to any time constraints or limitation.
As the right of redemption in a usufructuary mortgage arises only after the payment of the loan or balance amount after
adjusting the profits and benefits from the usufruct of the property there is no limitation time period in accordance with the
principle of “once a mortgage always a mortgage” unless the parties have agreed that the mortgage is for a specific
period only. In that event the limitation would start running on the expiry of that period.
● 60A. Obligation to transfer to third party instead of re-transference to mortgagor.—
○ (1) Where a mortgagor is entitled to redemption, then, on the fulfillment of any conditions
on the fulfillment of which he would be entitled to require a re-transfer, he may require
the mortgagee, instead of re-transferring the property, to assign the mortgage-debt and
transfer the mortgaged property to such third person as the mortgagor may direct; and the
mortgagee shall be bound to assign and transfer accordingly.
○ (2) The rights conferred by this section belong to and may be enforced by the mortgagor or
by any encumbrancer notwithstanding an intermediate encumbrance; but the requisition of
any encumbrance shall prevail over a requisition of the mortgagor and, as between
encumbrancers, the requisition of a prior encumbrancer shall prevail over that of a
subsequent encumbrancer.
○ (3) The provisions of this section do not apply in the case of a mortgagee who is or has been
in possession.
 RIGHT TO INSPECTION AND
PRODUCTION OF DOCUMENTS
● 60B. Right to inspection and production of documents.— A mortgagor, as long as his
right of redemption subsists, shall be entitled at all reasonable times, at his request
and at his own cost, and on payment of the mortgagee’s costs and expenses in this
behalf, to inspect and make copies or abstracts of, or extracts from, documents of title
relating to the mortgaged property which are in the custody or power of the
mortgagee.

● 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
mortgagor.
 Right to redeem the mortgage separately
or simultaneously
● 61. Right to redeem separately or simultaneously.— A mortgagor who has executed two or more
mortgages in favour of the same mortgagee shall, in the absence of a contract to the contrary,
when the principal money of any two or more of the mortgages has become due, be entitled to
redeem any one such mortgage separately, or any two or more of such mortgages together.

● Doctrine of Consolidation – The mortgagee who holds several mortgages executed by same
mortgagor may require the simultaneous redemption of all the mortgages, but when it is
exercised the mortgagor can not redeem the mortgage without at the same time redeeming the
others.
● Thus same has been abolished by section 61 in India to prevent hardship to the mortgagor.
Girvadis v Chacku, AIR 1952
 RIGHT OF USUFRUCTUARY MORTGAGOR TO
RECOVER POSSESSION
● 62. Right of usufructuary mortgagor to recover possession.—
● In the case of a usufructuary mortgage, the mortgagor has a right to recover possession
of the property [together with the mortgage-deed and all documents relating to the
mortgaged property which are in the possession or power of the mortgagee],—
○ (a) where the mortgagee is authorized to pay himself the mortgage-money from the
rents and profits of the property,— when such money is paid;
○ (b) where the mortgagee is authorised to pay himself from such rents and profits [or
any 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.
 RIGHT TO ACCESSION
● As per Section 63 of the Transfer of Property Act, 1882 Where mortgaged property in possession of the mortgagee has,
during the continuance of the mortgage, received any accession, the mortgagor, upon redemption shall, in the absence of a
contract to the contrary, be entitled as against the mortgagee to such accession.

Accession acquired in virtue of transferred ownership.—Where such accession has been acquired at the expense of the
mortgagee, and is capable of separate possession or enjoyment without detriment to the principal property, the mortgagor
desiring to take the accession must pay to the mortgagee the expense of acquiring it. (SEPARABLE ACCESSION)
If such separate possession or enjoyment is not possible, the accession must be delivered with the property; the mortgagor
being liable, in the case of an acquisition necessary to preserve the property from destruction, forfeiture or sale, or made with
his assent, to pay the proper cost thereof, as an addition to the principal money, [with interest at the same rate as is payable on
the principal, or, where no such rate is fixed, at the rate of nine per cent per annum]. In the case last mentioned the profits, if any,
arising from the accession shall be credited to the mortgagor. (INSEPARABLE ACCESSION)
Where the mortgage is usufructuary and the accession has been acquired at the expense of the mortgagee, the profits, if any,
arising from the accession shall, in the absence of a contract to the contrary, be set off against interest, if any, payable on the
money so expended.
○ Accession can be of two types:
■ Natural accession.
■ 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 & shall not be liable to pay except for contract to contrary.
● Where any such improvement was effected at the cost of the mortgagee and was necessary to
preserve the property from destruction or deterioration or was necessary to prevent the security
from becoming insufficient, or was made in compliance with the lawful order of any public
servant or public authority, the mortgagor shall, in the absence of a contract to the contrary, be
liable to pay the proper cost thereof as an addition to the principal money with interest at the
same rate as is payable on the principal, or, where no such rate is fixed, at the rate of nine per cent
per annum, and the profits, if any, accruing by reason of the improvement shall be credited to the
mortgagor.
(But where the improvements were at cost of the mortgagee 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.

● Rajah Kishendutt v. Rajah Mumtaz Ali (1880)

○ Trustee for beneficiary
 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:

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

○ It shall reserve the best rent and no rent or premium shall be paid in advance.
○ the lease shall not contain a covenant for renewal.
○ the lease shall come into effect within six months from the date on which it is made.
○ in case lease of buildings, the duration of the lease shall not exceed not more than three
years. (there shall be a covenant of re-entry).
 LIABILITIES OF MORTGAGOR
● Liabilities of Mortgagor ; Section 65 and 66 of the Transfer of the Property
Act, 1882

○ Section 65 is the implied liabilities which are laid upon the mortgagor.

○ 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.
 65. IMPLIED CONTRACTS BY MORTGAGOR.—IN THE ABSENCE OF A
CONTRACT TO THE CONTRARY, THE MORTGAGOR SHALL BE DEEMED TO
CONTRACT WITH THE MORTGAGEE,—

○ 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) that the interest which the mortgagor professes to transfer to the mortgagee
subsists, and that the mortgagor has power to transfer the same; (Covenant for title)

○ (b) 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; (Covenant
for defence).

○ (c) 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;
(Covenant for payment of public charges)
● (d) and, where the mortgaged property is a lease, that the rent payable under the lease, the
conditions contained therein, and the contracts binding on the lessee have been paid, performed
and observed down to the commencement of the mortgage; and that the mortgagor will, so long
as the security exists and the mortgagee is not in possession of the mortgaged property, pay
the rent reserved by the lease, or, if the lease be renewed, the renewed lease, perform the
conditions contained therein and observe the contracts binding on the lessee, and indemnify
the mortgagee against all the claims sustained by reason of the non-payment of the said rent
or the non-performance or non-observance of the said conditions and contracts. (Covenant for
payment of dues)

● (e) and, where the mortgage is a second or subsequent encumbrance on the property, that the
mortgagor will pay the interest from time to time accruing due on each prior encumbrance as
and when it becomes due, and will at the proper time discharge the principal money due on such
prior incumbrance. The benefit of the contracts mentioned in this section shall be annexed to and
shall go with the interest of the mortgagee as such, and may be enforced by every person in
whom that interest is for the whole or any part thereof from time to time vested. (Covenant for
discharge of prior mortgage, if any)
 66. A mortgagor in possession of the mortgaged property is not liable to the mortgagee for
allowing the property to deteriorate; but he must not commit any act which is destructive or
permanently injurious thereto, if the security is insufficient or will be rendered insufficient by such
act.
This section imposes a duty on the mortgagor to not to commit any act which leads to the waste
of property or any act which reduces the value of the mortgaged property.

Explanation.—A security is insufficient within the meaning of this section unless the value of the
mortgaged property exceeds by one-third, or, if consisting of buildings, exceeds by one-half, the
amount for the time being due on the mortgage.
Waste is divided into two categories:
● Permissive waste– A mortgagor who is in possession of the mortgaged property is not liable to the mortgagee for any minor waste.
● Active waste– When an act is done which causes major waste of the property or leads to the reduction in the value of mortgaged property, then the mortgagor will be
liable to the mortgagee.
RIGHTS AND LIABILITIES OF MORTGAGEE
 RIGHTS OF MORTGAGEE:
1.Right to foreclosure or sale: Section 67 of the Transfer of Property Act deals with the Right to foreclosure or sale. This section
states that at any time after the Mortgage money has become due, the Mortgagee has the right to obtain from the court, a decree
for foreclosure.
Right to fore-closure or sale.—In the absence of a contract to the contrary, the mortgagee has, at any time after the
mortgage-money has become [due] to him, and before a decree has been made for the redemption of the mortgaged
property, or the mortgage-money has been paid or deposited as hereinafter provided, a right to obtain from the Court [a
decree] that the mortgagor shall be absolutely debarred of his right to redeem the property, or [a decree] that the property be
sold.
A suit to obtain [a decree] that a mortgagor shall be absolutely debarred of his right to redeem the mortgaged property is
called a suit for foreclosure. Nothing in this section shall be deemed—
(a) to authorise any mortgagee other than a mortgagee by conditional sale or a mortgagee under an anomalous mortgage by the terms of which he is
entitled to foreclose, to institute a suit for foreclosure, or an usufructuary mortgagee as such or a mortgagee by conditional sale as such to institute a suit for
sale; or]
(b) to authorise a mortgagor who holds the mortgagee’s rights as his trustee or legal representative, and who may sue for a sale of the property, to
institute a suit for foreclosure; or
(c) to authorise the mortgagee of a railway, canal, or other work in the maintenance of which the public are interested, to institute a suit for foreclosure
or sale; or
(d) to authorise a person interested in part only of the mortgage-money to institute a suit relating only to a corresponding part of the mortgaged
property, unless the mortgagees have, with the consent of the mortgagor, severed their interests under the mortgage.
Ladu Chimaji v. Babaji, (1883)
A suit to obtain a decree that a mortgagor shall be absolutely debarred of his right to redeem the mortgaged property
is called a suit for foreclosure. The mortgagor has the option to deposit all the dues in the court before the passing of a
final decree in a foreclosure suit.

The rights of the mortgagee to foreclose can be partially or fully curtailed, or accelerated by a contract to the contrary,
but at the same time, that may have no impact on the mortgagor’s right to redeem. A provision for re-conveyance where it
is not conditional upon payment of interest is a contract to the contrary.

Where no time is fixed for repayment of debt, the right to foreclose arises from the date of the execution of the deed, or
from the date of demand for repayment is made and is refused by the mortgagor. In case a time is fixed, the right
arises after the time expires.
A default in payment of interest does not accelerate the right of foreclosure unless the contract specifies so. It,
however, entitles the mortgagee to take action of sending a notice of demand or filing a suit. In case the agreement is to
repay in instalments, the right to sue arises each time an instalment is due.
● 2.Right to sue for Mortgage-money:

Section 68 of the Transfer of Property Act states that the Mortgagee has right to sue for the
Mortgage-money in the following cases and “no other”:

a. when the Mortgagor binds to repay the money.

b. when the Mortgagor's property is wholly or partly destroyed by any cause other than the
wrongful act or default of the Mortgagee.

c. when the Mortgagee is deprived of the whole or part of his security by wrongful act of the
mortgagor.

d. when the Mortgagee was entitled to possession of the Mortgaged property and the Mortgagor has
failed to deliver it.
 3.Power to sale when valid:
Section 69 of the Transfer of Property Act, states that in the following cases the sale is valid. (Without
intervention of court – and in no other case)
○ a. When the Mortgage is English Mortgage between Non Hindus, Non Muslims, Non Buddhist and
member of the race or sect notified by the State Government to the Official Gazette.
○ b. When Government is the Mortgagee, with the express provision of sale without intervention of the court.
○ c. When it is specially conferred in the mortgage deed and the Mortgaged property is situated at
Calcutta, Madras, Bombay or any other gazette town or area.
The rule was applied to an English mortgage between a company, and trustees for debenture-holders, some of the trustees being Hindus, see L V Apte v. RGN Price, AIR 1962 AP 274; see also Kanhaya Lal v.
National Bank of India, AIR 1923 PC 114.

There are three conditions that are mandatory for the exercise of this power. These conditions cannot be varied even by a contract to the contrary:
(i) such power of sale can be exercised after notice in writing requiring payment of the principle money has been served on the mortgagor, or on
one of several mortgagors; and
(ii) default has been made in payment of the principal money, or of part thereof, for three months after such service; or some interest under the
mortgage amounting at least to five hundred rupees is in arrear and unpaid for three months after becoming due.
Protection of Purchaser & Remedies to Mortgagor :
(3) When a sale has been made in professed exercise of such a power, the title of the purchaser shall not be
impeachable on the ground that no case had arisen to authorise the sale, or that due notice was not given, or that the
power was otherwise improperly or irregularly exercised; but any person damnified by an unauthorised or
improper or irregular exercise or the power shall have his remedy in damages against the person exercising the
power.

Effect of Sale :
(4) The money which is received by the mortgagee, arising from the sale, after discharge of prior encumbrances, if
any, to which the sale is not made subject, or after payment into Court under section 57 of a sum to meet any prior
encumbrance, shall, in the absence of a contract to the contrary, be held by him in trust to be applied by him, first, in
payment of all costs, charges and expenses properly incurred by him as incident to the sale or any attempted
sale; and, secondly, in discharge of the mortgage-money and costs and other money, if any, due under the
mortgage; and the residue of the money so received shall be paid to the person entitled to the mortgaged
property, or authorised to give receipts for the proceeds of the sale thereof.

The right of redemption does not come to an end merely by putting the property to auction, but a sale destroys it. and if the
mortgagor continues in possession without the permission of the purchaser, such possession is adverse.
 4. Right of accession (Section 70) :
The Mortgagee has the right of accession to the increased Mortgaged property. The Mortgagee has the
right of accession to the increased properties for renewal of security.

5.Right to renewal of lease (Section 71) :

If the Mortgaged property is under lease, the Mortgagee is entitled for renewal of the lease for
purpose of security.

6.Right to reimbursement of expenses (Section 72) :

The Mortgagee has the right for reimbursement with interest for the money spent for purposes like
preservation of Mortgaged property etc.

7.Right to receive proceeds of revenue sale of the mortgaged property (Section 73).
 LIABILITIES OF MORTGAGEE:
(SECTION 76)
● 1.Bound to sue:
A Mortgagee is bound to sue on behalf of all the Mortgagees in respect of which the Mortgage money has
become due in the absence of express contract.

● 2.Bound to manage property with ordinary prudence:

Mortgagee has duty to manage the property as a person of ordinary prudence would manage if it were his
own.

● 3.Bound to collect rents and profit with due deligence:

To use his best endeavour to collect the rents and profits thereof.

● 4.Bound to pay government revenue and other charges:

In the absence of a contract to the contrary, Mortgagee has duty to pay Government revenue and the other
charges of a public nature and all rents, out of the income of the property.
● 5.Bound to make necessary repairs
In the absence of a contract to the contrary, Mortgagee has duty to make such necessary repairs as the income of the property permits.

● 6.Not to cause destruction or permanent injury

Mortgagee has duty not to commit an act which is destructive or permanently injurious to the property.

● 7.Liability to apply for insurance money - If any loss or damage due to fire etc.
When the whole or any part of the property is insured against loss or damage by fire, in case of such loss or damage to reinstate the insured
property with the money obtained from the insurance policy or to discharge the Mortgage debt with it, if the Mortgagor so directs.

● 8. Liability to account for gross receipts in case he retains possession after the mortgagor tenders or deposit the mortgage money in court
Has duty to keep clear, full and accurate accounts of all sums received and spent by him as Mortgaged and give them to the Mortgagor when
asked.
Has duty to debit receipts from the Mortgaged property or where such property is personally occupied by him a fair occupation rent thereof after
deducting the expenses of management, the collection charges, revenue and costs of repairs, first against the interest on the Mortgage money and
then against the principal.
Has duty to account for the receipts from the Mortgaged property.
 MARSHELLING
● 81. Marshalling, securities.—
○ If the owner of two or more properties
○ mortgages them to one person
○ and then mortgages one or more of the properties to another person, the
subsequent mortgagee is,
○ in the absence of a contract to the contrary,
○ entitled to have the prior mortgage-debt satisfied out of the property or
properties not mortgaged to him, so far as the same will extend,
but not so as to prejudice the rights of the prior mortgagee or of any other person
who has for consideration acquired an interest in any of the properties.
 CONTRIBUTION
● 82. Contribution to mortgage-debt.—
○ Where property subject to a mortgage belongs to two or more persons having distinct and separate rights of
ownership therein,
○ the different shares in or parts of such property owned by such persons are,
○ in the absence of a contract to the contrary,
○ liable to contribute ratably (portion of respective share in property) to the debt secured by the mortgage, and,
○ for the purpose of determining the rate at which each such share or part shall contribute,
○ the value thereof shall be deemed to be its value at the date of the mortgage after deduction of the amount of any
other mortgage or charge to which it may have been subject on that date.
● Where, of two properties belonging to the same owner, one is mortgaged to secure one debt and then
both are mortgaged to secure another debt, and the former debt is paid out of the former property,
each property is, in the absence of a contract to the contrary, liable to contribute ratably to the
latter debt after deducting the amount of the former debt from the value of the property out of which
it has been paid.
● Nothing in this section applies to a property liable under section 81 to the claim of the
[subsequent] mortgagee. (Marshalling supersedes contribution)
 SUBROGATION
92. Subrogation.— Any of the persons referred to in section 91 (other than the mortgagor) and any
co-mortgagor shall, on redeeming property subject to the mortgage, have, so far as regards redemption,
foreclosure or sale of such property, the same rights as the mortgagee whose mortgage he redeems may
have against the mortgagor or any other mortgagee.

● The right conferred by this section is called the right of subrogation, and a person acquiring the same is said
to be subrogated to the rights of the mortgagee whose mortgage he redeems.

● A person who has advanced to a mortgagor money with which the mortgage has been redeemed shall be
subrogated to the rights of the mortgagee whose mortgage has been redeemed, if the mortgagor has by
a registered instrument agreed that such persons shall be so subrogated.

● Nothing in this section shall be deemed to confer a right of subrogation on any person unless the mortgage
in respect of which the right is claimed has been redeemed in full.
 Section 100 of Transfer of Property

CHARGE Act, 1882 (hereinafter TPA)

 CHARGE
Charge is a concept which is defined under Section 100 of Transfer of Property Act, 1882 (hereinafter
TPA). A charge is an interest or a right which is created over an asset or a property.

● Section 100 of the TPA, 1882 defines charge as,

○ “Where immovable property of one person
○ is by an act of parties or operation of law (How created)
○ made security for the payment of money to another,
○ and the transaction does not amount to a mortgage, the latter person is said to have a charge
on the property;
● and all the provisions hereinbefore contained which apply to a simple mortgage (Section 58(b) shall, so far as may be, apply
to such charge.”
● Nothing in this section applies to the charge of a trustee on the trust-property for expenses properly incurred in the execution of
his trust, and, save as otherwise expressly provided by any law for the time being in force,
● no charge shall be enforced against any property in the hands of a person to whom such property has been transferred for
consideration and without notice of the charge.
 "charge" means an interest or lien, created on the property or
As per Section 2(16) of Companies Act 2013,
assets of a company or any of its undertakings or both as security and includes a mortgage.

REGISTRATION OF CHARGE UNDER COMPANIES ACT 2013

1. According to section 77(1) of the Companies Act, 2013 and Rule 3 of Companies (Registration of charges) rules, 2014: every
Company creating or modifying the charge, whether in India or outside, shall register the particulars of charge signed by the company
and the charge holder within 30 days of the creation or modification of the charge.
2. The following are the forms for creation/modification of charge:

a) Form No. CHG-1 for charges other than debentures.

b) Form No. CHG-9 for debentures including modifications.
However, the Registrar may allow the company to register the charge after the above mentioned period on receiving the application
by the Company.
 INGREDIENTS

1. Immovable Property
Where immovable property of one person made security for the payment of money to another, and the transaction does not
amount to a mortgage, the latter person is said to have a charge on the property.

2. Created to secure payment of money

Created for securing the recovery of some money from the person whose property is so charged.
E.g. – Maintenance Allowance
Though Mortgage is also made to secure a certain some of money (essentially debt).

There is very little difference between the two –

In Mortgage – Transfer of Interest in favour of Mortgagee
No transfer of Interest in case of charge; only Interest in property is created in favour of the charge holder.
(Creation of personal obligation - Only entitled to recover his money from the specific property).
● “Every Mortgage is Charge but every Charge is not a mortgage”
● A charge is almost like mortgage but Charge is wider than Mortgage.

● In Raja Shri Shiv Prasad v. Beni Madhab AIR 1922 Pat 529
● Patna HC observed that “the broad distinction between a mortgage and a charge is that ; whereas a
charge only gives a right to payment out of a particular fund or particular property without
transferring that fund or property, a mortgage is in essence transfer of interest in that specific
immovable property.”

● For example – Transfer of property with condition to maintain.

● Joint property mortgaged – payment done by either one of two.
● Specific property
3. Created by Act of Parties or operation of Law
● The charge created by an act of parties (Contractual Charge)
○ The parties themselves create a charge by entering into an agreement.
○ No particular form of words or language is required to create a charge.
○ (Either oral or writing u/s 9, but in writing, must be registered if value is above rs. 100)
○ It will be sufficient to create a charge if it can be seen from the document that there is a clear intention to use the property as a security for
the payment of the money, without transferring any interest or right in the property. The remedy of the holder of the charge is against the
property charged only.
○ For example- A inherited a property from his grandmother. He receives a certain amount of rent from that property. Now on his own volition,
he executed an agreement to pay a certain portion of the rent to B. B will have a charge over the said property.
In the said transaction A doesn’t owe any money to B nor does B have any right over the rent accruing from that property. But by entering into an
agreement for payment of some amount to B, A by his own act has created a charge over the property which can be duly enforceable by B if A
fails on his part.
● Charges arising by operation of law (Legal Charge)
○ A charge can also be created by the operation of law. It means the charge is created without the will or intention of the parties, but the law
enforces them to comply with certain obligations.
○ For example- B made full payment of purchase money to A in advance. But A is neither transferring the property nor registering it in the name
of B. A charge will be created by the operation of law over the said property in favour of B.
 ● Matlub Hasan v Mt Kalawati 147 IC 302, AIR 1933 All 934

● The Calcutta High Court held that: “If an instrument is expressly stated to be a mortgage and gives the
power of realization of the mortgage money by the sale of the mortgaged premises, it should be held to
be a mortgage. The fact that the necessary formalities of due execution were wanting would not convert
the mortgage into a charge.

● If, on the other hand, the instrument is not on the face of it a mortgage, but simply creates a lien, or
directs the realization of money from a particular property, without reference to sale, it creates a
charge.”
 EXCEPTION
● Section 100 provides two exceptions under which no charge can be created. They are as follows:
● Nothing in this section applies to the charge of a trustee on the trust-property for expenses properly incurred in the
execution of his trust, and, save as otherwise expressly provided by any law for the time being in force,
● no charge shall be enforced against any property in the hands of a person to whom such property has been transferred for
consideration and without notice of the charge.

1) The charge which is created on an immovable property (which is also a trust property in favour of a trustee) for
incurring expenses in the execution of his trust i.e. maintaining the trust property.
A trustee is entitled to a charge on the income as well as the corpus of the trust estate for all moneys properly expanded
in performing the obligations of the trust and this charge has priority over the returns of the beneficiaries.
○ The expenses incurred will be a charge upon the trust property, but this charge cannot be enforced by selling the said property as it would
lead to the destruction of the trust which is prohibited under Section 32 of Trust Act. However, once he ceases to be a trustee, he can
enforce the same by sale.
○ One can only be reimbursed from the income coming out of such property and can stop any further disposition of the property until his
expenses are paid.
2) A property upon which a charge had been created is brought by a person in consideration without having any
notice of the said charge, then such charge cannot be enforced against him.
 EXTINCTION OF CHARGE
Charges are enforced as simple mortgage. Like mortgagee, the charge holder
can enforce his claim and recovery of money by causing the sale of charged
property.
Charge are extinguished in the same manner as simple mortgage.
a.) By act of parties
b.) Merger (Section 101)
THANK YOU
ALL THE BEST FOR EXAMS !!
KHYATI NAYAK
Assistant Professor (Law)
KPMSOL, NMIMS, MUMBAI
Email : [email protected]