APROJECTREPORTON

For
ecl
osur
e&Redempt
ion:Adet
ail
edanal
ysi
s
Submi
tt
edt
o:
Ms.Nav
itaAggar
wal
(Asst
.Pr
ofessor
)
(
Facul
ty,
Transf
erofpr
oper
tyAct
)
By
:
Dev
endr
aDhr
uw
Rol
lno:
-59
Semest
er-
IVC,
BA.
LLB(
Hons.
)

Dat
eofSubmi on:15thNov
ssi ember2018
Hi
day
atul
lahNat
ionalLawUni
ver
sit
y
 Decl
arat
ion

I
,Dev
endr
a Dhr
uw,her
eby decl
aret
hat
,the pr
oject wor
k ent
it
led,
“
For
ecl
osur
e&Redempt
ion:Adet
ail
edanal
ysi
s”submi
tt
edt
oMs.Nav
ita
Aggar
wal
,Facul
ty,
H.N.
L.U.
,Rai
puri
srecor
dofanor
igi
nalwor
kdonebyme
undert
hegui
danceofMs.Nav
itaAggar
wal
,Facul
ty,Tr
ansf
erofPr
oper
ty
Act
,H.
N.L.
U,Rai
pur
.

Dev
endr
aDhr
uw

Semest
erI
V

Rol
lNo.59

Sect
ionC
 ACKNOWLEDGEMENTS

Fi
rst&f
oremost
,It
aket
hisoppor
tuni
tyt
othankMs.Nav
itaAggar
wal
,Facul
ty,
Transf
er
ofPr
oper
ty,
HNLUf
oral
l
ott
ingmet
hischal
l
engi
ngt
opi
ctowor
kon.Shehasbeenv
ery
ki
ndi
npr
ovi
dingi
nput
sfort
hiswor
k,bywayofsuggest
ionsandbygi
vi
ngherv
ery
pr
eci
ous t
ime f
orsome di
scussi
on.Hence Iwoul
dli
ke t
othank herf
oral
lher
cooper
ati
onandsuppor
t.

Iwoul
dal
sol
i
ket
othankt
heUni
ver
sit
yAdmi
nist
rat
ionf
orequi
ppi
ngt
heUni
ver
sit
ywi
th
suchgoodl
i
brar
yandI
Tlab.

Lastbutnott
hel
east
;Iwoul
dli
ket
othankmyf
ri
endsf
orhav
ingawonder
ful
debat
eand
di
scussi
oni
nthehost
el,andhencecr
eat
ingaknowl
edgebasef
orv
ari
ousaspect
sof
t
hissoci
etyaswel
lasoureducat
ion.

Dev
endr
aDhr
uw

Rol
lNo.
-59,
Sec-
C

Semest
er-I
V
Cont
ent
s:

 Decl
arat
ion

 Acknowl
edgement
s.

 Obj
ect
ives.

 Resear
chMet
hodol
ogy
.

I
ntr
oduct
ion.

 Sect
ionI
-TheRi
ghtt
oRedeem.

 Sect
ionI
I-TheRi
ghtofFor
ecl
osur
eorSal
e.

 Sect
ionI
II
-Di
ff
erencesunderEngl
i
shLawandI
ndi
anLaw.

 Concl
usi
on.

\
Obj
ect
ives:
Theobj
ect
iveoft
hepr
ojecti
s:

1.Tounder
stand&anal
yzet
her
ight
soff
orecl
osur
eandr
edempt
ionwi
thr
egar
dto
mor
tgagor&mor
tgagee.
2.Todi
scussbot
hther
ight
sunderEngl
i
shaswel
lAsI
ndi
anl
aws.
3.Todr
awcompar
isonbet
weent
het
wo.

Met
hodol
ogy
:
Thi
spr
oject
swor
kisbasedont
hedescr
ipt
iveappr
oachasi
trequi
resadeepst
udyof
t
het
opi
cfol
l
owedbyt
hor
oughdescr
ipt
ion.I
tisbasedonsecondar
ysour
ces,
i.
e.,
books
andel
ect
roni
csour
ces(
int
ernet
).

Websi
tes,
dict
ionar
iesandar
ti
cleshav
eal
sobeenr
efer
red.
 I
ntr
oduct
ion

Undert
heTr
ansf
erofPr
oper
tyActof1882,
thet
erm Mor
tgagehasbeendef
inedunder
Sect
ion58whi
chi
ngener
alt
ermscanbedef
inedas“
thet
ransf
erofani
nter
esti
na
speci
fi
cimmov
abl
e pr
oper
tyf
ort
he pur
pose ofsecur
ing t
he pay
mentofmoney
adv
ancedort
obeadv
ancedbywayofl
oani
npr
esentori
nfut
ure”
.Iti
snott
het
ransf
er
ofabsol
utei
nter
esti
nthepr
oper
ty.Whi
l
e,l
easei
sal
soaki
ndoft
ransf
erofi
nter
esti
na
pr
oper
tyont
hepay
mentofr
ent
,themai
npur
poseoft
ransf
erofi
nter
esti
namor
tgage
i
stosecur
ethepay
mentofl
oan.Accor
dingt
oMai
tl
and,wheni
nconsi
der
ati
onofa
moneyl
oan,At
ransf
ersBapi
eceofl
andwi
thast
ipul
ati
ont
hati
fthemoneyl
entwas
r
epai
dwi
thi
nter
estonagi
venday
,thenBwi
l
lrev
ertt
hepr
oper
tybackt
oA.Buti
fthe
moneywasn’
trepai
d,t
hent
hepr
oper
ti
esowner
shi
pgoest
oB.

Ast
hepar
ti
esengagedi
nat
ransf
erofpr
oper
tyar
eknownast
ransf
erorandt
ransf
eree,
si
mil
arl
ythepar
ti
esi
nvol
vedi
namor
tgagear
eknownasmor
tgagorandmor
tgagee.
Mor
tgagori
stheper
sonwhogi
vest
hepr
oper
tyi
nmor
tgage,whi
l
emor
tgageei
sone
whot
akest
hepr
oper
tyofmor
tgage.Soasst
atedear
li
er,t
hatt
hemai
npur
poseof
mor
tgagei
stosecur
ethepay
mentofmoneyadv
anced;whenaper
sonl
endsmoneyt
o
t
heot
her
,hecansuet
hebor
roweri
fhef
ail
stor
epayt
hemoney
.Buti
fthebor
rower
becomesi
nsol
vent
,thel
enderl
osesal
lofhi
smoneyandhedoesn’
thav
eanyr
emedi
es
f
orhi
sloss.So,byat
tachi
ngsomesecur
it
yfort
her
epay
mentofl
oan,t
her
ight
soft
he
l
enderar
eal
sopr
otect
ed.
So,undert
hispr
oject
,Iam goi
ngt
odealwi
tht
her
ight
sofmor
tgagorunderSec.
60of
t
heTr
ansf
erofPr
oper
tyActknownast
heRi
ghtofRedempt
ionaswel
last
her
ight
sof
mor
tgageegi
venunderSec.
67knownast
heRi
ghtofFor
ecl
osur
eorSal
eandhence
putf
ort
hacompar
ati
veanal
ysi
sbet
weent
het
wor
ight
s.

Sect
ion-
I

TheRi
ghtt
oRedeem

Ri
ghtofr
edempt
ioni
sther
ightwhi
chev
erymor
tgagorpossess,whi
chi
scr
eat
edby
v
irt
ueoft
hemor
tgagedeed.Thi
sri
ghti
sconsi
der
edt
obei
nal
i
enabl
e,andcannotbe
t
akenawayf
rom amor
tgagorbymeansofanycont
ractt
othecont
rar
y.Accor
dingt
o
Bl
ack’
sLaw Di
cti
onar
y,t
erm“
redempt
ion”canbedef
i t
nedas heactoft
hev
endorof
pr
oper
tyi
nbuy
ingi
tbackagai
nfr
om t
hepur
chaseratt
hesameoranenhancedpr
ice.
“
RightofRedempt
ion”canbedef
inedundert
hesamedi
cti
onar anagr
yas  eement
,by
whi
cht
hev
endorr
eser
vest
ohi
msel
fthepoweroft
aki
ngbackt
het
hingsol
dby
r
etur
ningt
hepr
icepai
dfori
t.Thi
sri
ghtf
indspl
aceunderSect
ion60oft
heTr
ansf
erof
Pr
oper
tyAct
,1882whi
chmakesmor
tgagort
heowneroft
hepr
oper
tymor
tgaged,and
makeshi
m abl
egethi
spr
oper
tybackf
rom t
hemor
tgageeonpay
ingt
heamount
bor
rowedf
rom hi
m.Cl
ogonar
ightmeanst
hei
nser
ti
onofanycl
auseoranypr
ovi
sion
undert
hemor
tgageddeedwhi
chwoul
dal
i
enat
emor
tgagorofhi
spr
oper
tyundercer
tai
n
ci
rcumst
ances.

UnderI
ndi
anl
egalsy
stem,
suchpr
ovi
sionswoul
dnotbeabl
etoal
i
enat
eamor
tgagorof
hi
s“Ri
ghtofRedempt
ion”
,andsuchpr
ovi
sionswoul
dbev
oidabi
nit
io.Ther
easonf
or
suchcl
ausesundert
hemor
tgagedeedbei
ngv
oidi
squi
tei
nter
est
ingandr
easonabl
e.I
t
woul
dnotbedi
ff
icul
ttounder
standt
hataper
sonmor
tgageshi
spr
oper
tywhenhei
sin
needofmoney
,andwoul
dnotbei
nthesameposi
ti
onast
hatoft
hemor
tgagee.Al
so,
it
woul
dnotbedi
ff
icul
ttounder
standt
hatmor
tgageewoul
dtr
ytomi
susehi
sposi
ti
ont
o
expl
oitt
hemor
tgagor
,andi
tisf
ort
hisr
easont
hatsuchcl
ausebecomesobv
iouswhi
ch
woul
dal
i
enat
eamor
tgagorofhi
spr
oper
ty.I
tishi
ghl
ypossi
blet
hataper
sonagr
eest
o
ent
eri
namor
tgagehav
ingcl
auseswhi
chext
ingui
shhi
sri
ghtofr
edempt
ion,buti
t
woul
dnotbenecessar
ythatt
hepr
ovi
sionshav
ebeenaccept
edbyhi
m wi
l
li
ngl
y.I
nneed
ofmoney
,aper
sonwoul
dagr
eet
othet
ermsandcondi
ti
onsoft
hemor
tgageeev
eni
f
hedoesn’
twantt
odoso.But
,law doesn’
tsi
tsi
l
entandi
nsuchcasesi
tst
epsi
nthe
pi
ctur
e,andsav
ethebasi
cri
ght
sofamor
tgagor
.Law doesn’
tal
l
ow anyper
sont
o
al
i
enat
eamor
tgagorofhi
s“Ri
ghtofr
edempt
ion”
.Suchr
ightwoul
dremai
nef
fect
ive
unl
esst
hepr
oper
tyhasbeensol
dof
forunderanyst
atut
orypr
ovi
sion.Ev
eni
fmor
tgage
haswentt
othecour
tfort
hef
orecl
osur
eoft
hepr
oper
tymor
tgaged,mor
tgagorcan
r
edeem hi
spr
oper
tybypay
ingof
fthef
ull
amounti
nthecour
t.

UnderEngl
ishLaw:

Undert
heEngl
i
shl
aw,t
hemor
tgagor
’sr
ightofr
edempt
ioni
sknownasTheEqui
tyof
Redempt
ion.Thi
sri
ghthasbeeni
ntr
oducedbyt
heEngl
i
shl
aw i
tsel
f.I
tgoti
tsname
becauseoft
hef
actt
hatt
hatt
hecour
tsoft
hecommonl
awwer
enotabl
etodealwi
th
cer
tai
nty
pesofcaseswher
eredr
esswasneeded.Soev
ent
ual
l
ytheKi
ngest
abl
i
shed
t
heCour
tofChancer
ytodeal
wit
hsuchpet
it
ionswi
tht
hehel
pofhi
schancel
l
ors.Sot
he
chancel
l
or,i
ndeal
i
ngwi
thsuchpet
it
ionswasn’
tboundbyst
ri
ctl
aws,butr
atheront
he
gr
oundsofequi
tyornat
uralj
ust
ice.Hencef
ort
h,t
heCour
tofChancer
ywasl
ateron
comet
obeknownast
heCour
tofEqui
ty.

So,
asst
atedear
li
ert
hatt
hemai
npur
poseofmor
tgagei
stogi
vesecur
it
ytot
hel
ender
f
ort
her
epay
mentofhi
sloan,i
fthebor
roweri
sn’
tabl
etor
etur
nthel
oant
akeni
nthe
gi
vent
ime.Butev
eni
fthef
ixedt
imei
spassed,
andt
hebor
roweri
sn’
tabl
etor
etur
nthe
moneyi
nagi
venamountoft
ime,
hecanr
edeem wi
tht
hel
ender
.Sot
her
ightt
oredeem
a mor
tgaged pr
oper
ty by appl
i
cat
ion t
othe Chancer
y was known as Equi
ty of
Redempt
ion.

Or
igi
nal
l
yequi
tyi
nter
venedonl
yincasesoff
raudbyt
hemor
tgageebutsooncamet
o
1
r
ecogni
zeagener
alr
ightt
oredeem i
nal Sal
lcases( tvMar
quessofNor
thampt
on)
. 
Thus,equi
tyal
l
owst
hemor
tgagort
oredeem ev
enaf
tert
hedat
efi
xedbyt
hemor
tgage
agr
eementf
orr
epay
menthaspassed.Ofcour
se,
sincet
hisr
ighti
senf
orceabl
einequi
ty
onl
y,i
tissubj
ectt
othegener
alpr
inci
plet
hatequi
tabl
eremedi
esar
edi
scr
eti
onar
yin
nat
ureandal
ltheequi
tabl
emaxi
ms(
par
ti
cul
arl
ythe‘
cl
eanhands’doct
ri
ne)wi
l
lappl
y.
Fur
ther
mor
e,i
n deci
ding whet
herr
edempt
ion i
s possi
ble,equi
ty wi
l
llook att
he
subst
anceoft
heagr
eement
,noti
tsf
orm.Accor
dingl
y,amor
tgagewhi
chi
sdr
aft
edt
o
l
ookl
i
keanout
ri
ghtt
ransf
eroft
hepr
oper
ty,r
athert
hant
hecr
eat
ionofani
nter
estby
wayofsecur
it
y,wi
l
lst
il
lbesubj
ectt
otheequi
tabl
eri
ghtt
oredeem,
ift
hef
act
sar
esuch
ast
oindi
cat
ethatonl
yagr
antbywayofsecur
it
ywasi
ntended.

I
nequi
tyt
hemor
tgagori
sdescr
ibedasowni
ngt
he‘
equi
tyofr
edempt
ion.
’Thi
smustbe
di
sti
ngui
shedf
rom t
heequi
tabl
eri
ghtt
oredeem.Theequi
tyofr
edempt
ioni
sthe
mor
tgagor
’sequi
tabl
eint
eresti
nthepr
oper
tyandi
tconsi
st hesum t
soft otaloft
he
mor
tgagor
’sr
ight
sinr
elat
iont
othel
and(
incl ng,i
udi nteral
i
a,t
her
ightt
oredeem)
.The
equi
tyofr
edempt
ioni
sther
efor
eani
nter
esti
nlandandcanbedeal
twi
thl
i
keanyot
her
equi
tabl
eint
erest
.

Sot
her
ightofr
edempt
iongi
vent
othemor
tgagorcannotbeav
oidedbysomecont
ract
ont
hegr
oundt
hatheexpr
essl
yabandonshi
sri
ghtt
oredeem t
hepr
oper
ty.Accor
dingl
y,
i
nthecaseofSt
anl
eyv.Wi
lde2,Lor
dLi
ndl
eyconsi
der
edt
henat
ureofamor
tgageand
sai
d:"
Thepr
inci
plei
sthi
s:amor
tgagei
saconv
eyanceofl
andoranassi
gnmentof
chat
tel
sasasecur
it
yfort
hepay
mentofadebt
,ort
hedi
schar
geofsomeot
her
obl
i
gat
ionf
orwhi
chi
tisgi
ven.Thi
sist
hei
deaofamor
tgage;andt
hesecur
it
yis

1.[
1892]AC1.
2.(
1898)2Ch.307.
r
edeemabl
eont
hepay
mentordi
schar
geofsuchdebtorobl
i
gat
ion,
anypr
ovi
siont
othe
cont
rar
ynot
wit
hst
andi
ng.That
,inmyopi
nion,i
sthel
aw.Anypr
ovi
sioni
nser
tedt
o
pr
eventr
edempt
iononpay
mentorper
for
manceoft
hedebtorobl
i
gat
ionf
orwhi
cht
he
secur
it
ywasgi
veni
swhati
smeantbyacl
ogorf
ett
eront
heequi
tyofr
edempt
ion,
and
i
sther
efor
evoi
d.I
tfol
l
owsf
rom t
hist
hat'
onceamor
tgageal
way
samor
tgage,
'butIdo
notunder
standt
hatt
hispr
inci
plei
nvol
vest
hef
urt
herpr
oposi
ti
ont
hatt
heamountor
nat
ureoft
hef
urt
herdebtorobl
i
gat
ion,t
hepay
mentorper
for
manceofwhi
chi
stobe
secur
ed,i
sacl
ogorf
ett
erwi
thi
nther
ule.A cl
ogorf
ett
eri
ssomet
hingwhi
chi
s
i
nconsi
stentwi
tht
hei
deaofsecur
it
y;"I
nsi
mpl
ert
erms,i
tmeansanobst
ruct
iont
othe
equi
tyofr
edempt
ion.Hencef
ort
h,somepr
inci
pleshav
ebeendev
elopedst
atedas
f
olows3:
l

(
a)Thatt
hemor
tgagori
sal
l
owedt
oredeem ev
enaf
tert
hel
egaldat
ehaspassedso
l
ongasher
epay
sal
lmoneyout
standi
ngundert
hemor
tgage.

(
b)Thatanyt
erm oft
hemor
tgagewhi
chi
sacl
ogont
heequi
tyofr
edempt
ionwi
l
lbe
v
oidandcanbei
gnor
edbyt
hemor
tgagor
.

(
c) Thatequi
tywi
l
lappl
ytot
heabov
etwopr
inci
plest
oanyt
ransact
ion,whi
chi
sin
subst
anceamor
tgagewhat
everout
war
dfor
mthet
ransact
iont
akes.

So,i
nEngl
i
shl
aw,accor
dingt
oEar
lofNot
ti
ngham,LC;amor
tgagecannev
erpr
ovi
de
anycondi
ti
onatt
het
imeofmaki
ngt
hel
oanwhi
cht
heequi
tyofr
edempt
ioncanbe
di
schar
gedandt
heconv
eyanceget
svi
ol ed4.
at

UnderI
ndi
anLaw:

Asf
arasI
ndi
anposi
ti
oni
nthi
sregar
disconsi
der
ed,asmuchoft
heI
ndi
anl
awst
ems
f
rom Engl
i
shl
aw,r
ight
sandl
i
abi
l
iti
esofmor
tgagori
ntr
ansf
erofpr
oper
tybei
ngno
except
iont
other
ule,i
sal
socongr
uous(
inmanyaspect
s)wi
tht
hecor
respondi
ng

3.M Har
wood,Engl
ishLandLaw,(London:Sweet&Maxwel
l
,1975)
,pp.
402-
403.
4.Vemonv.Bet
hel
l,
(1972)2Edn.110,P.113.
Engl
i
shposi
ti
on.Theser
ight
sar
edeal
twi
thi
ns.
60oft
heTr
ansf
erofPr
oper
tyAct
,1882.
Sect
ion60r
eadsasf
oll
ows:

“
Atanyt
imeaf
tert
hepr
inci
palmoneyhasbecomedue,t
hemor
tgagorhasar
ight
,on
pay
mentort
ender
,atapr
opert
imeandpl
ace,oft
hemor
tgage-
money
,tor
equi
ret
he
mor
tgagee(
a)t
o del
i
vert
othemor
tgagort
hemor
tgage-
deed and al
ldocument
s
r
elat
ing t
othe mor
tgaged pr
oper
tywhi
ch ar
eint
he possessi
on orpoweroft
he
mor
tgagee,(
b)wher
ethemor
tgageei
sinpossessi
onoft
hemor
tgagedpr
oper
ty,t
o
del
i
verpossessi
ont
her
eoft
othemor
tgagor
,and(
c)att
hecostt
hemor
tgagorei
thert
o
r
e-t
ransf
ert
hemor
tgagedpr
oper
tyt
ohi
m ort
osucht
hir
dper
sonashemaydi
rect
,ort
o
execut
eand(
wher
ethemor
tgagehasbeenef
fect
edbyar
egi
ster
edi
nst
rument
)tohav
e
r
egi
ster
edanacknowl
edgementi
nwr
it
ingt
hatanyr
ighti
nder
ogat
ionofhi
sint
erest
t
ransf
err
edt
othemor
tgageehasbeenext
ingui
shed;pr
ovi
dedt
hatt
her
ightconf
err
ed
byt
hissect
ionhasnotbeenext
ingui
shedbyactoft
hepar
ti
esorbydecr
eeofacour
t”.

Ther
ightconf
err
edbyt
hissect
ioni
scal
l
edar
ightt
oredeem andasui
ttoenf
orcei
tis
cal
l
edasui
tforr
edempt
ion.Asi
tiscl
earf
rom t
her
eadi
ngofsect
ion60t
hatt
her
ightof
r
edempt
ioni
nIndi
aisast
atut
oryr
ightandt
her
efor
ecannotbeext
ingui
shedev
enby
expr
essagr
eementmadeatt
het
imeofmor
tgageaspar
toft
ransact
ion.Thi
sri
ghtof
r
edempt
ioni
sani
nci
dentofasubsi
sti
ngmor
tgageandi
tsubsi
stsasl
ongasmor
tgage
subsi
sts.Ri
ghtofr
edempt
ionpr
esupposest
heexi
stenceofa‘
mor
tgage’
.Itmustal
so
benot
edt
hatt
hesect
ion60i
snotpr
efacedbyanywor
dsl
i
ke‘
i
ntheabsenceof
cont
ractt
ocont
rar
y’.Ther
efor
ether
ightofr
edempt
ioni
sast
atut
oryr
ight
,whi
chcanbe
f
ett
eredbyanycondi
ti
ont
hati
mpedesorpr
event
sredempt
ion.Anysuchcondi
ti
oni
s
v
oidascl
ogonr
edempt
ion.

Basi
cal
l
y,t
her
ear
esomei
nst
anceswhi
chput
sfor
tht
heci
rcumst
ancesunderwhi
chany
cl
ogont
hemor
tgagor
’sr
ightt
oredeem wi
l
lbei
nval
i
d:

 Condi
ti
on ofsal
ein def
aul
t:Anycont
ractwhose ef
fecti
sto depr
ivet
he
mor
tgagorhi
sri
ghtt
oredeem wi
l
lbeconsi
der
edasi
nval
i
dbyt
hecour
tsast
he
r
ightt
oredeem i
nIndi
aisast
atut
oryr
ight
.So,
ifoneoft
het
ermsofmor
tgagei
s
t
hat
,ont
hef
ail
ureoft
hemor
tgagort
oredeem t
hemor
tgagewi
thi
nthespeci
fi
ed
 t
ime,
themor
tgagorwon’
thav
eanycl
aim ov
ert
hepr
oper
tyandsuchpr
oper
tywi
l
l
bedeemedt
obeadeedofsal
einf
avoroft
hemor
tgagee.Suchcondi
ti
ont
akes
awayt
her
ightt
oredeem oft
hemor
tgagor
,andhencesuchcondi
ti
oni
nit
sel
fis
5
i
nval
i
d.

 Longt
ermf
orr
edempt
ion:A l
ongt
ermi
snotnecessar
il
yanobst
ruct
ionon
r
edempt
ion.I
nthecaseofGangadharv
.Shankar
t a6i
al twashel
dbyt
heSupr
eme
cour
tthatt
het
ermi
nthemor
tgaget
hati
twi
l
lnotber
edeemabl
eunt
ilt
heexpi
ry
of85y
ear
swasnotacl
ogi
ntheci
rcumst
ancesoft
hecase.Howev
er,
ift
het
ime
per
iod whi
ch seems t
o be unr
easonabl
e wi
l
lbe consi
der
ed as a cl
og on
r
edempt
ion7.

 St
ipul
ati
onbar
ri
ngmor
tgagor
’sr
ightofr
edempt
ionaf
tercer
tai
nper
iod:I
fther
e
i
sast
ipul
ati
onwhi
chbar
smor
tgagor
’sr
ightofr
edempt
ionaf
teracer
tai
nper
iod,
t
hest
ipul
ati
on i
str
eat
ed asa “
clog”on t
hemor
tgagor
’sequi
tabl
eri
ghtof
r
edempt
ion8.

 Condi
ti
on post
poni
ng r
edempt
ion i
n case ofdef
aul
t:A condi
ti
on whi
ch
post
ponest
hemor
tgagor
’sr
ightofr
edempt
ionwi
l
lbeconsi
der
edasacl
og
becausei
thi
nder
sthemor
tgagor
’sexi
sti
ngr
ightt
oredeem9.

 Rest
rai
ntonAl
ienat
ion:Ast
ipul
ati
ont
hatt
hemor
tgagorshal
lnotal
i
enat
ethe
mor
tgagedpr
oper
tyorshal
lnott
akel
oanont
hesecur
it
yoft
hemor
tgaged
pr
oper
tyhasbeenhel
dt og10.
obeacl

 Redempt
ionr
est
ri
ctedt
omor
tgagor
:Anagr
eementt
hatt
her
ightofr
edempt
ion
shoul
dbeav
ail
abl
etot
hemor
tgagorandnott
ohi
slegalhei
rshasbeenhel
dasa
cl
og.

 Penal
tyi
ncaseofdef
aul
t:St
ipul
ati
ont
ochar
geanexcessi
veamountofi
nter
est

5.Gangadharv .Shankarlal
,AIR1958SC773.
6.AIR1958SC773.
7.FatehMohammadv .Ram Day al
(1927)2Luck.588I
.C.160.
8.Mur ar
il
alv.DeoKar anAIR1965SC225.
9.MohammadSherKhanv .SethSwami Dayal(
1922)44All.185.
10.Ram Saranv .Amrit,
(1980)3Al l
.369F.B.
f
rom t
hedat
eofmor
tgage,i
ncaseofdef
aul
tofpay
ment
,hasbeenhel
dtobea
cl
og.

Sect
ion-
II
 TheRi
ghtt
oFor
ecl
osur
eorSal
e

For
ecl
osur
eisal
egalpr
ocessi
nwhi
chal
enderat
tempt
stor
ecov
ert
hebal
anceofa
l
oanf
rom abor
rowerwhohasst
oppedmaki
ngpay
ment
stot
hel
enderbyf
orci
ngt
he
sal
eoft
heassetusedast
hecol
l
ater
alf
ort
hel
oan.For
mal
l
y,amor
tgagel
ender
(
mor
tgagee)
,orot
herl
i
enhol
der
,obt
ains a t
ermi
nat
ion ofa mor
tgage bor
rower
(
mor
tgagor
)'
sequi
tabl
eri
ghtofr
edempt
ion,ei
therbycour
tor
derorbyoper
ati
onof
11
l
aw (
aft
erf
oll
owi
ngaspeci
fi
cst
atut
orypr
ocedur
e).

Usual
l
yal
enderobt
ainsasecur
it
yint
erestf
rom abor
rowerwhomor
tgagesorpl
edges
anassetl
i
keahouset
osecur
ethel
oan.I
fthebor
rowerdef
aul
tsandt
hel
endert
ryt
o
r
epossesst
hepr
oper
ty,cour
tsofequi
tycangr
antt
hebor
rowert
heequi
tabl
eri
ghtof
r
edempt
ioni
fthebor
rowerr
epay
sthedebt
.Whi
l
ethi
sequi
tabl
eri
ghtexi
sts,
iti
sacl
oud
ont
it
leandt
hel
endercannotbesur
ethatt
heycansuccessf
ull
yrepossesst
hepr
oper
ty.
Ther
efor
e,t
hrought
hepr
ocessoff
orecl
osur
e,t
hel
enderseekst
ofor
ecl
ose(
inpl
ain
Engl
i
sh,i
mmedi
atel
yter
minat
e)t
heequi
tabl
eri
ghtofr
edempt
ionandt
akebot
hlegal
andequi
tabl
eti
tl
etot
hepr
oper
tyi
nfeesi
mpl
e.

Thet
ransact
ioni
sef
fect
edt
hroughadocumentcal
l
edt
hemor
tgagedeed.Ther
elev
ant
pr
ovi
sions r
egar
ding f
orecl
osur
e ar
e cont
ained underSect
ion 67 ofThe Tr
ansf
er
Pr
oper
tyAct
.Thef
orecl
osur
eri
ghtcanbeenf
orcedonf
ail
ureoft
hemor
tgagort
orepay
t
hemoneybor
rowedont
heduedat
e.Themor
tgageehasar
ightt
oobt
ainf
rom acour
t
adecr
eet
hatt
hemor
tgagorshoul
dbeabsol
utel
ydebar
redofhi
sri
ghtt
oredeem t
he
pr
oper
ty,oradecr
eet
hatt
hepr
oper
tybesol
d.A sui
ttoobt
ainadecr
eet
hatt
he
mor
tgagorbeabsol
utel
ydebar
redofhi
sri
ghtt
oredeem t
hemor
tgagedpr
oper
tyi
s
cal
l
edaSui
tforFor
ecl
osur
e.

Thi
sri
ghtoff
orecl
osur
ecanbeexer
cisedbyamor
tgageeonl
yift
hesecondi
ti
onshav
e
beenmet
:

 Themoneyhasbecomeduef
orpay
ment
.

11.Br
it
ain,
Great(
1761)
."Mor
tgage"
.St
atuesatLar
gef
rom t
heMagnaCar
tat
o1761i
nGr
eatBr
it
ain.
  Ther
ear
enocont
rar
ycondi
ti
onsi
nthemor
tgagedeed.
 Atanyt
imeaf
tert
hemor
tgagemoneyhasbecomeduet
othemor
tgageebut
bef
oret
hemor
tgagorget
sadecr
eeofr
edempt
ionoft
hemor
tgagedpr
oper
ty.
 Atanyt
imeaf
tert
hemor
tgagemoneyhasbecomeduet
ohi
m butbef
oret
he
12
mor
tgagemoneyhasbeenpai
dordeposi
tedbyt
hemor
tgagor .

Ther
emedydependsont
henat
ureoft
hemor
tgage.I
ncaseofasi
mpl
emor
tgage,t
he
r
ightoff
orecl
osur
eisnotav
ail
abl
e.Ther
emedyi
sei
thert
o pr
oceed agai
nstt
he
mor
tgagorper
sonal
l
yorf
orsal
eoft
hemor
tgagedpr
oper
ty.Thi
sisal
sot
heopt
ion
av
ail
abl
eincaseofusuf
ruct
uar
ymor
tgage.

I
nthi
scase,
themor
tgageewi
l
lbei
npossessi
onoft
hepr
oper
tyandwi
l
lcont
inuet
obe
sount
ilt
hedebti
srepai
dinf
ull
.Aper
soni
nter
est
edi
nonl
yapar
toft
hemor
tgage
moneymayi
nst
it
uteasui
trel
ati
ngonl
ytoacor
respondi
ngpar
toft
hemor
tgaged
pr
oper
ty.Howev
er,t
hisi
ssubj
ectt
othecondi
ti
ont
hatt
hemor
tgageeshav
esev
ered
t
hei
rint
erest
sundert
hemor
tgagewi
tht
heconsentoft
hemor
tgagor
.Incaseof
anomal
ousmor
tgage,
ther
emedydependsont
het
ermsoft
hemor
tgage.

I
nthecaseofanEngl
ishmor
tgage,t
hemor
tgageemaybr
ingasui
tforsal
eoft
he
pr
oper
ty.I
ncaseofcondi
ti
onalsal
e,t
hemor
tgagemat
uresi
ntosal
eont
hef
ail
ureof
t
hepay
mentofdebt
.Themor
tgageemayf
orecl
osedepr
ivi
ngt
her
ightofr
edempt
ion.I
n
caseofmor
tgagebydeposi
toft
it
lesdeeds,
ther
emedyi
stosuef
orper
sonaldecr
eeor
f
orsal
eoft
hepr
oper
ty.

Themer
edi
ff
erencebet
weenEngl
i
shl
awandt
heI
ndi
anl
awont
her
ightt
ofor
ecl
osur
e
orsal
eist
hatunderEngl
i
sh l
aw,bef
oret
he amendi
ng actof1929,an Engl
i
sh
Mor
tgageecoul
dsueei
therf
ort
hef
orecl
osur
eorf
orsal
e.Butnowhecanonl
ybr
inga
sui
tfort
hesal
eofmor
tgagepr
oper
ty.Whi
l
eunderI
ndi
anl
aw,asi
mpl
emor
tgagee
cannotf
orecl
ose.Hi
sremedyi
stobr
ingasui
tforsal
eoft
hemor
tgagedpr
oper
tyi
n
or
dert
orel
easet
hemor
tgage,aswel
lashecanal
sosuef
oront
heper
sonalcov
enant
andobt
ainamoneydecr
eeagai
nstt
hemor
tgagor
.Andbot
hther
emedi
esunderI
ndi
an

12.Sect
ion67Tr
ansf
erofPr
oper
tyAct
,18825.
l
awar
eindependentofeachot
herbecauset
heyar
isef
rom di
ff
erentcauseofact
ion.

Sect
ion-
II
I
Di
ff
erenceunderEngl
ishl
awandI
ndi
anl
aw

TheRi
ghtt
oRedeem:
Undert
he Engl
i
sh common l
aw,a mor
tgagee became t
he ownerofa pr
oper
ty
mor
tgagedt
ohi
m subj
ectt
oacov
enantf
orr
e-conv
eyancei
fhi
smor
tgagedueswer
e
pai
dtohi
m wi
thi
naf
ixedt
ime.Themor
tgagor
'sr
ightt
oredeem t
hemor
tgageunt
ilhe
wasdebar
redf
rom i
tbyf
orecl
osur
eort
hemor
tgagedpr
oper
tywassol
dundert
he
or
der
soft
heCour
twasr
ecogni
zedbyt
heCour
tsofEqui
tywhi
chhel
dthatamor
tgage
wasmer
elyasecur
it
yformoney
.

Thi
sri
ghti
scal
l
edt
heequi
tyofr
edempt
ion,ev
enwhent
hemor
tgagorwasgi
vent
his
r
ight
,themor
tgageecont
inuedt
obet
hel
egalowneroft
hemor
tgagedpr
oper
ty.Thi
s
l
ast
edunt
ilt
heLawofPr
oper
tyAct
,1925,
waspassedwher
eundert
hel
egalowner
shi
p
wasv
est
edi
nthemor
tgagor
.Twoi
mpor
tantpoi
ntsofdi
ff
erencebet
weent
heEngl
i
sh
l
awandt
heI
ndi
anl
awont
hissubj
ectmaybenot
ed:
Fi
rst
ly,nosuchexpr
essi
onas"
theequi
tyofr
edempt
ion"hasbeenusedi
ntheI
ndi
an
l
aw.
Ther
ightwhi
chamor
tgagorhasbeengi
venunderSect
ion60oft
heTr
ansf
erof
Pr
oper
tyActi
sther
ightt
oredeem.I
twi
l
lbequi
tei
ncor
rectt
oconsi
dert
hisexpr
essi
on
t
obeasubst
it
utef
or"
theequi
tyofr
edempt
ion"becauset
hel
att
erexpr
essi
oni
mpor
ts
t
hatt
heowner
shi
patl
aw i
svest
edi
nsomeoneot
hert
hant
hehol
deroft
heequi
tyof
r
edempt
ion.Secondl
y,a mor
tgagei
s,accor
ding t
o Sect
ion 58 oft
heTr
ansf
erof
Pr
oper
tyAct
,thet
ransf
erofani
nter
esti
nspeci
fi
cimmov
eabl
epr
oper
tyandnott
hatof
t
hei
mmov
eabl
epr
oper
tyi
tsel
f.
Owner
shi
pdoesnotpassbywayofmor
tgagebul
lbywayofsal
easdef
inedi
nSect
ion
54,I
tseemst
o met
hatt
heconf
li
ctofaut
hor
it
yont
hequest
ionofwhet
hert
he
mor
tgagorhol
dsat
angi
blei
mmov
eabl
epr
oper
tyoronl
yani
ntangi
bler
ighthasar
isen
gener
all
ybecause,i
nsomecases,t
hedi
sti
nct
ionbet
weent
heI
ndi
anl
aw andt
heol
d
Engl
i
shl
aw hasnotbeenkepti
nvi
ew wi
tht
her
esul
tthat
,taki
ngt
hemor
tgagor
's
i
nter
estt
obeabar
eequi
tyofr
edempt
ionandnott
hatofanowner
,ithasbeenhel
dthat
13
hehasonl
yani
ntangi
bler
ight .
TheRi
ghtt
oFor
ecl
osur
eorSal
e:
Nowaday
s,near
ly al
lst
ates hav
e enact
ed st
atut
es i
ncor
por
ati
ng t
he equi
ty of
r
edempt
ion,andmanyal
sohav
eenact
edper
iodsofr
edempt
ion,speci
fyi
ngl
engt
hsof
t
imewi
thi
nwhi
cht
hebor
rowermayr
edeem.Al
thoughsomedebt
ors,ormor
tgagor
s,
ar
eabl
etoav
oidf
orecl
osur
ethr
ought
heequi
tyofr
edempt
ion,manyar
enot
,because
r
edeemi
ngmeanscomi
ngupwi
tht
hebal
anceoft
hemor
tgagepl
usi
nter
estandcost
s,
somet
hingt
hataf
inanci
all
ytr
oubl
eddebt
ormi
ghtnotbeabl
etoaccompl
i
sh.Howev
er,
becausef
orecl
osur
eupendst
heagr
eementbet
weenmor
tgagorandmor
tgageeand
cr
eat
esbur
densf
orbot
hpar
ti
es,l
ender
sar
eof
tenwi
l
li
ngt
owor
kwi
thdebt
orst
ohel
p
t
hem t
hroughaper
iodoft
empor
arydi
ff
icul
ty.Debt
orswhor
uni
ntopr
obl
emsmeet
ing
t
hei
rmor
tgageobl
i
gat
ionsshoul
dspeakt
othei
rlenderaboutdev
elopi
ngapl
ant
oav
ert
f
orecl
osur
e.

UnderEngl
i
shl
aw,i
fthemor
tgagorf
ail
stor
edeem,i
tresul
tsi
nfor
ecl
osur
eoft
he
bor
rower
'sr
ight
sint
her
ealest
ate,whi
chi
sthensol
dbyt
hecount
ysher
if
fatapubl
i
c
f
ore-
closur
esal
e.Ataf
orecl
osur
esal
e,t
hel
enderi
sthemostf
requentpur
chaseroft
he
pr
oper
ty.I
fthebi
datt
hesal
eisl
esst
hant
hedebt
,ev
eni
fiti
sforf
airmar
ketv
alue,
the
l
endermaybegr
ant
edadef
ici
encyj
udgmentf
ort
hebal
anceoft
hedebtagai
nstt
he
debt
or,
wit
hther
ightt
oresor
ttoot
herasset
sori
ncomef
ori
tscol
l
ect
ion.

UnderI
ndi
anl
aw,t
her
ightt
oinst
it
uteasui
tforf
orecl
osur
eorsal
eisnotav
ail
abl
etoa
mor
tgageef
oranywor
kofmai
ntenancei
nwhi
cht
hepubl
i
cisi
nter
est
ed.Amor
tgagee

13.AI
R1959Pat153.
mayhol
dtwoormor
emor
tgagesexecut
edbyt
hesamemor
tgagor
.Inr
espectofeach
ofsuchmor
tgages,hemayhav
ear
ightt
oobt
ainadecr
eeoff
orecl
osur
e.I
ncasehe
suest
oobt
ainsuchadecr
eeonanyoneoft
hemor
tgages,hewi
l
lbeboundt
osueon
al
lthemor
tgagesi
nrespectofwhi
cht
hemor
tgagemoneyhasbecomedue.I
fthe
mor
tgagorhaspai
dordeposi
tedt
hemor
tgagedpr
oper
ty,
thent
her
ecomesnoquest
ion
f
ort
heexer
ciseoft
her
ightoff
orecl
osur
eorsal
e.

CONCLUSI
ON

Hi
stor
ical
l
y,amor
tgagewasgi
venassecur
it
yforal
oan,whi
cht
ookt
hef
orm ofa
conv
eyancet
othel
enderoft
hebor
rower
’sl
egalt
it
le.I
tisuponr
epay
mentoft
hel
oan,
t
hemor
tgageer
econv
enedl
egalt
it
let
othemor
tgagor
.Howev
eri
fthemor
tgagorf
ail
ed
t
opayt
hecont
ract
ualdat
eofr
edempt
ion,
themor
tgagee’
sti
tl
ewoul
dbecomeabsol
ute
atl
aw.Tomi
ti
gat
ethehar
shnessoft
hecommonl
awr
elat
ingt
omor
tgaget
ransact
ions,
equi
tyhad t
o st
ep i
n and cr
eat
ethe equi
tabl
eri
ghtofr
edempt
ion and r
ightof
r
edempt
ionandt
her
ightt
ofor
ecl
osur
e.

Theequi
tyofr
edempt
ionr
egar
dedt
hemor
tgagorbyequi
tyasbei
ngt
her
ealownerof
t
hemor
tgagedpr
oper
ty,whi
chst
il
lpr
ovi
dest
het
heor
eti
calunder
pinni
ngofmor
tgage
l
aw.I
tessent
ial
l
y puta check upon t
hree mai
nty
pes ofaddi
ti
onalgai
ns t
hat
mor
tgageessoughtt
hroughmor
tgagedeeds:t
obecomeowner
soft
hemor
tgaged
pr
oper
ty,t
ogetbackmor
ethant
heyadv
anced,andt
osecur
ecol
l
ater
aladv
ant
ages.
Whi
l
ethemor
tgageehasar
ightt
oobt
ainf
rom acour
tadecr
eet
hatt
hemor
tgagor
shoul
dbeabsol
utel
ydebar
redofhi
sri
ghtt
oredeem t
hepr
oper
ty,oradecr
eet
hatt
he
pr
oper
tybesol
d.
Howev
er,bycr
eat
ingt
hesedoct
ri
nes,t
hel
awcl
ogsupt
heexer
ciseofpowerupont
he
mor
tgagoraswel
lasmor
tgageebygi
vi
ngbot
hoft
hem cer
tai
nri
ght
s.

Bi
bli
ogr
aphy
 Tr
ansf
erofPr
oper
ty28thedn,
, All
ahabadLawAgency
,Dr
.S.
NShukl
a.
 TheTr
ansf
erofPr
oper
tyAct
,R.
K.Si
nha.
.
 Tr
ansf
erofPr
oper
tyAct
,Si
rDi
nshawMul
l
a.
 Tr
ansf
erofPr
oper
tAct
,1882.