Deposit of Mortgaged Money

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DEPOSIT OF MORTGAGED MONEY

Transfer of Property Act

Submitted by:

SHUBHAM RAJROLL NO !"#$##"

SEMESTER III

DAMODARAM SANJI%YYA NATIONAL LA& UNI%ERSITY

%'s(a)(apatna*

Octo+er !"#,

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-ERTIFI-ATE

S.+/ect0 Transfer of Property Act

Na*e of Fac.1ty0 Dr. Raghuram

Part'c.1ars Date an2 S'3nat.re of t(e

Fac.1ty

Re*ar)s

A+stract S.+*'ss'on 4

%er'f'cat'on

F'rst cons.1tat'on

Secon2 cons.1tat'on

T('r2 cons.1tat'on 4 f'na1

s.+*'ss'on

I, 5S(.+(a* Ra/67 hereby declare that this project titled DEPOSIT OF MORTGAGED

MONEY! submitted by me is original "or#s underta#en by me.

$Signature of candidate%

P1ace0 &isa#hapatnam Shubham Raj

Date0 Roll no. '()*))(

Semester III

A-8NO&LEDGEMENT

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+hether it be a small needle or the biggest s#yscraper, "e need some helping hands in the

ma#ing of it, nothing comes out of a solo effort And hence, I-m obliged to epress my deep /o"

of gratitude, first of all, to"ards the subject Professor "ho ga/e me the golden opportunity to do

this "onderful project on the topic D0P1SIT 12 31RT4A40D 315067! Doing the project

"as an eperience "here the #no"ledge "as my best ta#ea"ay.

I "ould also li#e to than# my parents and friends "ho helped me a lot in finishing this project

"ithin the limited time.

1nce again, than#s to all "ho helped me in completing this project "or#.

S(.+(a* Ra/

TABLE OF -ONTENTS

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TITLE Pa3e n.*+er

A-8NO&LEDGEMENT "$

LIST OF CASES "9

# INTRODU-TION ":! RESEAR-H METHODOLOGY

!# A'*s an2 o+/ect';e

!! Researc(

">

">

"?

9 POST DEPOSIT

9# Effect of @'t(2ra@a1 of t(e 2epos't +y t(e *ort3a3or

9! D'sp.te on t't1e of t(e property

"?

"?

#"

-ON-LUSION

BIBLIOGRAPHY

BOOKS

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#!

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LIST OF -ASES

District 8o9op 8entral an# 8luttoor /s. &. Suryanarayan Setty, '((*$*% 8i/il. ;j )


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# INTRODU-TION

Fnder the transfer of property Act, )??' a mortgagor has three remedies "hen it comes to the

redemption of the mortgaged property, $a. e may tender mortgage money directlyGpri/ately to

the mortgagee under Section E( of the Act, b. e may deposit money in court under section ?* of

the Act or c. e may institute a suit for redemption under Section


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!$ So.rces of 2ata

The researcher has relied primarily on the secondary sources of data in the form of boo#s,

articles, reports and Internet sources.

!, Met(o2 of @r't'n3

The researcher has follo"ed a descripti/e style throughout the project "hereas the methodology

follo"ed is doctrinal.

!9 Mo2e of c'tat'on

The ar/ard lueboo# 8itation 4uide had been follo"ed.

$ GENERAL DEFINITIONS

$# Mort3a3e

Sections >?9)(= of the transfer of property Act deal "ith mortgage, its types and the issues

related to it. The section >? of specifically defines the "ord mortgage as9 the transfer of an

interest in specific immo/able property for the purpose of securing the payment of money

ad/anced or to be ad/anced by "ay of loan, on eisting or future debt, or the performance of an

engagement "hich may gi/e rise to a pecuniary liability.!

$! Depos't

Deposit under this pur/ie" means and includes the deposition of the amount of money borro"edfrom the mortgagee in lieu of the security gi/en by the mortgagor summed up "ith the interest

$if applicable% on that money i.e. the principle sum and the interest $if applicable and as agreed%

of the money that the mortgagor is supposed to pay to the mortgagee to get his properties bac#.

$$ Depos't of *ort3a3e *oney

Deposit of mortgage money means returning the money borro"ed along "ith the interest on it $if

applicable% in order to get release of the property gi/e as a security to the borro"ed money to the

mortgagee by the mortgagor.

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$, Re2e*pt'on

Fnder this Act, redemption is a right gi/en to the mortgagor it is basically the action of

regaining or gaining the possession of the property gi/en as security for clearing a mortgage. It

has been defined under section E( of the transfer of property Act.

, DEPOSITING THE MONEY DUE ON MORTGAGE IN THE -OURT

,# Depos't'n3 'n co.rt6 a spec'a1 )'n2 of ten2er

Deposit of mortgaged money in the court is a special #ind of tender designated to ma#e a/ailable

to the mortgagor a sure mode of proof of the fact he has made a tender. +hen the mortgagor pays

the amount due upon the mortgage into court and pays batta for notice "ith the proper address of

the mortgagee, he has done all that has to be done by him and interest ceases to run. If the

mortgage is usufructuary), the mortgagor becomes entitled to mesne profits from the date "hen

the money "as deposited and the notice sent to the mortgagee'. The mere fact of tender does not

etinguish the security. That result follo"s only "hen the mortgagee applies or and recei/es the

money in terms of section ?* of the Act.*

,! R'3(t to *oney 2epos'te2 +y t(e *ort3a3or

The court shall thereupon cause "ritten notice of deposit to be ser/ed on the mortgagee, and the

mortgagee may, on presenting a petition stating the amount due on mortgage, and his "illingness

to accept the money so deposited in full discharge of such amount and on depositing in the same

court the mortgage deed and all documents in his possession or po"er relating to the mortgaged9

1+here the mortgagor deli/ers possession or epressly or by implication binds himself to deli/er

possession of the mortgaged property to the mortgagee and authorises him to retain such possession until

payment of the mortgage9money, and to recei/e the rents and profits accruing from the property or any

part of such rents and profit and to payment of the mortgage9money, or partly in lieu of interest, or in

payment of themortgage9money, or partly in lieu of interest or in payment of the mortgage9money, thetransaction is called an usufructuary mortgage and the mortgagee an usufrustuary mortgagee.

24o/indam nair /s. 8heu/amma *> 3.;.@. *)*

34.8.&. Subba Rao, ;a" of transfer of property, Alt Publication yderabad9' $> thed., '()(%, pg no.

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property, apply for and recei/e the money, and the mortgage9deed, and all such other documents

so deposited shall be deli/ered to mortgagor or such other person as aforesaid. =

+here the mortgagee is in possession of the mortgaged property, the court shall, before paying to

him the amount so deposited, direct him to deli/er possession thereof to the mortgagor and at the

cost of the mortgagor either to re9transfer the mortgaged property to the mortgagor or to such

third person as the mortgagor may direct or to eecute and ha/e registered an ac#no"ledgment

in "riting that any right in derogation of the mortgagor-s interest transferred to the mortgagee

has been etinguished.>

,$ 2epos't *ore or 1ess t(an 2.e a*o.nt

2or the tender to be /alid the "hole amount should be deposited including the interest upto the

day depositing, if the amount tendered is larger than the amount that is due, the /alidity of the

tender is not affected.E

An amount deposited less than "hat is due is not a /alid tender and interest doesn-t cease to run

e/en protanto "hen part payment is done. ut in case, by bona fide miscalculation, the tender

falls short of the amount due by a small amount, the Juestion arises "hether the tender is /alid or

is /alidated by the maim9 De 3inimis non 8urat ;e!

9 POST DEPOSIT9# Effect of @'t(2ra@a1 of t(e 2epos't

By themortgagee:

+hen the mortgagee "ithdra"s the amount deposited under section ?* to his account, the

mortgage is etinguished. If the "ithdra"al is not made in his capacity as mortgagee, there is no

etinction of liability under the mortgage. It is for the creditor to sho" that he or his agent

44. P. Tripathi, the transfer of property Act, 8entral ;a" Publications $)? thed., '()=% pg no.9=?

5id

6Subramania Aiyar /s. narayanas"ami *= 3.;.@. =*

Deposit of Mortgaged Money

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