RIGHTS AND LIABILITIES OF A MORTGAGOR
The
rights and liabilities of a mortgagor under a mortgage are as under:
I.
Right of mortgagor to redeem:
Section
60, Transfer of Property Act provides that at any time after the
principal money has become due, the mortgagor has right on payment
or tender, at a proper time and place, of the mortgage money, 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
or power of the mortgagee;
-
where
the mortgagee is in possession of the mortgaged property, to
deliver possession thereof to the mortgagor; and
-
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 where the mortgage has been effected by a registered
instrument to have registered an acknowledgement in writing
that any right in derogation of his interest transferred to
the mortgage has been extinguished:
Provided
that the right conferred by this section has not been extinguished
by the act of the parties or by decree of court.
II.
Obligation to transfer to third party instead of re-transference
to mortgagor
Section
60 A, Transfer of Property Act provides that 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 retransfer,
he may require the mortgagee, instead of retransfering the property,
to assign the mortgage debt and transfer the mortgaged property
to such third person as the mortgagor may direct the mortgagee and
the mortgagee shall be bound to assign and transfer accordingly.
The
provisions of this section do not apply in the case of mortgagee,
who is or has been in possession.
III.
Rights 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 cost 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.
IV.
Rights 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.
V.
Right of usufructuary mortgagor to recover possession
In
the case of 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.
VI.
Accession to mortgaged property
Where
mortgage 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.
VII.
Improvements to mortgaged property
Section
63A (1), Transfer of Property Act provides that where mortgaged
property in possession of the mortgagee has during the continuance
of the mortgage, been improved, the mortgagor, upon redemption,
shall, in the absence of a contract to the contrary, be entitled
to the improvement and the mortgagor shall save only in cases provided
for in sub-section (2) be liable to pay the cost thereof.
VIII.
Renewal of mortgaged lease
Where
the mortgaged property is a lease, and the mortgagee obtains a renewal
of the lease, the mortgagor, upon redemption, shall in absence of
a contract by him have the benefit of the new lease.
IX.
Mortgagor’s power to lease
Section
65A(1), Transfer of Property Act provides that a mortgagor, while
lawfully in possession of the mortgaged property, shall have power
to make leases thereof which shall be binding on the mortgagee.
X.
Waste by mortgagor in possession
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.
A
security is insufficient, 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.
