The Right of
Redemption is an essential feature of mortgage and is inherent in it. The mortgagor's
right of redemption is not merely a contractual right. It is a legal right given to him by law.The provisions regarding this are contained in Section 60
of the Transfer of Property Act, 1882.
The property mortgaged
is only a security for the money lent.The mortgagor is entitled to get back
his property on payment of the principal and interest after the expiry of the
due date for repayment of the mortgagee's money. This right of the mortgagor is
called Right of Redemption. Section 60 of the Transfer of Property Act reserves
this right. The right cannot be fettered by any condition, which prevents redemption.
The right cannot be controlled by any contract to the contrary.As per
provisions of Section 60, at any time after the principal has become due,and
upon payment at a proper time and place of the mortgage money, the mortgagor
has the following rights:
-Right to require the
mortgagee to deliver to the mortgagor the mortgage deed and all documents relating to the mortgaged property, which are in the possession of the mortgagee,if the
mortgagee is in possession of the mortgaged property.
-Right to deliver
possession of it to the mortgagor, and at the cost of the mortgagor either to
retransfer the mortgaged property to him or to any third person as he may
direct.
-Right 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.
The right conferred by
this section is called a right to redeem. A suit to enforce this is referred to
as a suit for redemption.The mortgagor can exercise the right before it is extinguished
by the act of the parties or by the operation of law. The right can also be extinguished by a decree of court. The mortgagor is not entitled to redeem
before the mortgage money is due that is before the time fixed for the payment
of mortgage money.The rights are subject to the condition that the rights
conferred as above have not been extinguished by the act of the parties or by a
decree of court.
The mortgage deed may
provide that the time fixed for payment of the principal money should be
allowed to pass or in case no such time has been fixed, the mortgagee shall be
entitled to reasonable notice before payment or tender of such money.
It is to be noted that
the above statutory provisions shall not apply to redemption of portion of
mortgaged property.The provisions shall not entitle a person interested in a
share only of the mortgaged property to re-deem his own share only, on payment of
a proportionate part of the amount remaining due on the mortgage.
The rights as
conferred above belong to and may be enforced by the mortgagor or by any encumbrance.Where a mortgagor is entitled to redemption, then on the fulfillment of requisite
conditions, which enable a retransfer, he may require the mortgagee to either
retransfer the property to him or instead of retransferring the property, to
assign the mortgage debt and transfer the mortgaged property to such third person
as the mortgagor may direct. In such a case, the mortgagee shall be bound to
assign and transfer accordingly.
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