S. 58(c) TPA | Mere Possession Of Property By Mortgagor Wouldn't Make 'Mortgage By Conditional Sale' A 'Simple Mortgage' : Supreme Court
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3 months, 1 week ago

S. 58(c) TPA | Mere Possession Of Property By Mortgagor Wouldn't Make 'Mortgage By Conditional Sale' A 'Simple Mortgage' : Supreme Court

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The Supreme Court observed that allowing a mortgagor to stay in possession does not make the transaction a 'simple mortgage' if the deed specifies that the mortgagor's default in redeeming the property within the stipulated time would lead to transfer of the mortgage property to the mortgagee under 'mortgage by conditional sale' as per Section 58 of the Transfer of Property Act,. The Supreme Court observed that allowing a mortgagor to stay in possession does not make the transaction a 'simple mortgage' if the deed specifies that the mortgagor's default in redeeming the property within the stipulated time would lead to transfer of the mortgage property to the mortgagee under 'mortgage by conditional sale' as per Section 58 of the Transfer of Property Act, 1882. • Terms of the Mortgage Deed: The mortgage deed allowed the defendant to use the land and specified that the right of the mortgagor to reclaim the property would be extinguished upon default.” Setting aside the impugned decisions, the judgment authored by Justice Vikram Nath observed that the courts below erred in not holding the transactions as mortgage by conditional sale as all the ingredients of Section 58 TPA stand fulfilled. Moreover, the court noted that the plaintiff's possession over the mortgaged property would be deemed as 'permissive possession', disentitling him to claim additional benefits out of the mortgage deed.

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History of this topic

Mortgagee Has Inherent Right To Put Property On Public Auction In Case Of Failure Of Payment: Punjab & Haryana HC
1 week, 4 days ago

Mortgagee Has Inherent Right To Put Property On Public Auction In Case Of Failure Of Payment: Punjab & Haryana HC

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The Punjab & Haryana High Court has said that the mortgagee has a right to sell the mortgage property in a public auction if the borrower fails to pay the stipulated instalments. The main argument raised by the Haryana Government authorities was that while permission was granted for mortgaging the property, the Bank did not obtain permission to sell it …

S. 58(c) TPA | Mere Possession Of Property By Mortgagor Wouldn't Make 'Mortgage By Conditional Sale' A 'Simple Mortgage' : Supreme Court
Trending News
3 months, 1 week ago

S. 58(c) TPA | Mere Possession Of Property By Mortgagor Wouldn't Make 'Mortgage By Conditional Sale' A 'Simple Mortgage' : Supreme Court

Live Law  

The Supreme Court observed that allowing a mortgagor to stay in possession does not make the transaction a 'simple mortgage' if the deed specifies that the mortgagor's default in redeeming the property within the stipulated time would lead to transfer of the mortgage property to the mortgagee under 'mortgage by conditional sale' as per Section 58 of the Transfer of …

Karnataka High Court Upholds Order For Specific Performance Of Sale Agreement, Says If Owner Intended To Avail Loan It Would Execute Mortgage Deed
10 months, 1 week ago

Karnataka High Court Upholds Order For Specific Performance Of Sale Agreement, Says If Owner Intended To Avail Loan It Would Execute Mortgage Deed

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The Karnataka High Court has upheld an order of the trial court decreeing a suit for specific performance of a sale agreement in favour of the plaintiff and rejected the contention of the defendants who are businessmen that they had availed loan from the plaintiffs and had not agreed to sell the schedule property. A division bench of Justice E …

Difference Between 'Mortgage By Conditional Sale' & 'Sale With Condition Of Retransfer' : Supreme Court Explains
1 year, 6 months ago

Difference Between 'Mortgage By Conditional Sale' & 'Sale With Condition Of Retransfer' : Supreme Court Explains

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The Supreme Court in the judgment Prakash By LR. Referring to Section 58 of the Transfer of Property Act, 1882, the Court observed, “A deeming fiction was added in the negative that a transaction shall not be deemed to be a mortgage unless the condition for reconveyance is contained in the document which purports to effect the sale”. On the …

Dispute Between Defendants Regarding Validity Of Sale Deed Can’t Be Considered In Suit For Possession Instituted By Plaintiff: Supreme Court
1 year, 10 months ago

Dispute Between Defendants Regarding Validity Of Sale Deed Can’t Be Considered In Suit For Possession Instituted By Plaintiff: Supreme Court

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The Supreme Court bench comprises Justices M.R. Ravikumar has ruled that an inter-se dispute on the validity of the sale deed executed between the defendants in respect of the suit land, cannot be considered in the suit for possession instituted by the plaintiff on the basis of a registered sale deed executed in its favour, as it would amount to …

Whether A Deed Is Of Absolute Transfer Or Mortgage By Conditional Sale? Intention Of Parties Determines : Supreme Court
3 years, 7 months ago

Whether A Deed Is Of Absolute Transfer Or Mortgage By Conditional Sale? Intention Of Parties Determines : Supreme Court

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The Supreme Court has observed that the intention of parties has to be looked into to consider whether a document is of absolute sale or mortgage by conditional sale.Section 58 of the Transfer of Property Act defines the Mortgage by conditional sale as follows: "Where the mortgagor ostensibly sells the mortgaged property on condition that on default of payment of …

Sale With A Mere Condition Of Retransfer Is Not A Mortgage, Reiterates SC [Read Judgment]
5 years, 8 months ago

Sale With A Mere Condition Of Retransfer Is Not A Mortgage, Reiterates SC [Read Judgment]

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The Supreme Court has reiterated that a sale with a mere condition of retransfer is not a mortgage.In this case, the sale deed dated 10th December, 1968 does not disclose that the transaction is one of mortgage or that of a conditional sale. In this case, the sale deed dated 10th December, 1968 does not disclose that the transaction is …

No Right To Redemption After Issuance Of Sale Certificate To Auction Purchaser: SC [Read Judgment]
7 years, 9 months ago

No Right To Redemption After Issuance Of Sale Certificate To Auction Purchaser: SC [Read Judgment]

Live Law  

If there remained no subsisting mortgage, it is difficult to fathom what was to be redeemed, the bench observed.The Supreme Court, in Allokam Peddabbayya vs Allahabad Bank, has held that if the right to redeem stood extinguished by operation of law under proviso to Section 60 of the Transfer of Property Act, 1882, prior to the period of limitation, it …

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