1. Right of Redemption:
The right of Redemption is contained u/s 60 of T.P Act, it is paramount right of the mortgagee, the reason being so that the mortgager right of Redemption is guarded by the Courts. The term redemption animates from the word Redeem that is to say to get back or to receive back or to release the property from the hands of the mortgagee by payment of mortgage debt, this is the most important right of the mortgagor to pay of the mortgage money and get back the property.
In England, This right was created by the courts of Equity and is known as Equity of redemption. In India under the provisions of T.P Act there is no distinction between Equity of redemption and right to redeem, The Mortgager being an owner who has parted with some rights of ownership has a right to get back the title deeds, the mortgage deed or mortgage property in exercise of his right of ownership.
The salient features of right of Redemption is this is the statutory and legal right of the mortgageor and can also be termed as an absolute right which can’t be extinguished or given away by any agreement made at the time of mortgage as part of mortgage transaction. Any provision in cooperative in the mortgage deed to prevent the hamper redemption shall be considered void.
A mortgage can’t be made irredeemable not the right of Redemption of illusionary, the right of redemption is an incident of a substiance mortgage and it substance so long the mortgage exist.
Once a mortgage always a mortgage.
This principle suggest that the mortgageor rights of redemption is an absolute and indefensible right which can’t be taken away by any law or contract. This right can’t be detach from the mortgage, the mortgage may be redeem at any time after the principle money has become deed.
Clog on redemption
A mortgage is security for a debt, the right of Redemption continues although the mortgageor fails to pay the debt at the due date any provision or clause which is inserted to prevent or impede the right of Redemption shall be considered void an amounts as a clog on redemption.
When this right of Redemption is exercised.
The right of redemption is exercised when the principle money has been secured due, the mortgager can’t redeemed before the time fixed by the deed for payment of the loan. But if mortgage has fixed no time for payment, the mortgager may redeem at any time.
Redemption how to be exercised.
The mortgager right of Redemption is exercised by payment or seeding to the mortgagee at the proper time at the proper place of the mortgage money and if the mortgagee creates hurdle from releasing the property then mortgage has a right to file a suit for redemption so as to release the property and get back it’s possession. The period of limitations for filing the suit of redemption is 60 years as Article 148 of limitations Act. (2016 CLC 928 ).
When the right of redemption gets extinguished.
1. On the principle of merger by the act of the parties that is to say when the principle money along with the markup is paid and the property or title documents is released the redemption comes to an end.
2. Upon expiry of period of limitations: when the mortgager fails to exercise his right of Redemption as per the law within the specified period, the right of Redemption comes to an end as per article 148 of limitations Act
3. When upon failure to redeem the property the mortgagee exercises his right of auction sale or forth closer the right of Redemption gets extinguished.
4. Forth upon assignment of mortgage debt in favor of another mortgagee. The right of Redemption of the earlier mortgagor comes to an end.
2. Right of Transfer to third party (By assignment of mortgage debt) Sec 60 A of T.p Act.
According to this section the mortgager may require the mortgagee to assign the mortgage debt and transfer the mortgage property to a third person directed by him instead of retransferring the property to him.
3. Right to inspection and production of documents Section 60-B.
According to this section the mortgageor who has the handle the title deeds or other documents relating to the mortgage property to the mortgagee is entitled to inspect those documents he may require the mortgagee to produce those documents in his possession at the cost of mortgageor himself, the mortgageor may copy or extracts from those documents.
4. Right to accession section 63 of T.P Act.
When mortgage property is in possession of the mortgagee has during the continuance of the mortgage, received any accession the mortgager shall upon redemption be entitled to such accessions as against mortgagee in absence of the contract to the contrary.
There are two types of accessions
a. Natural Accessions. It denotes physical accession whether brought by the natural or artificial means that is to say accession by the courts of nature is known as natural Accessions and accession brought by articial means that is to say by construction of building over a plot, Factory or anyonther self constructed.
5. Right to grant lease Section 65-A.
Another right of the mortgager is that a mortgager who is lawful possession of the property shall have the power to lease the property which shall be binding on the mortgagee such lease shall be made in ordinary course of the management of the property an in accordance with the local law customs or usage such lease shall reserve the best rent that can be fetched. Such lease shall not contain any clause of renewable and such a period of lease will not exceed to the period of mortgage.
6. Right to a reasonable waste section 66 of T.P Act.
According to this section a mortgager is in possession of the mortgage property is allowed permissive waste but not an active waste, if a reasonable waste is there during the period of mortgage the mortgager is not liable to the mortgagee for allowing the property to deteriorative but he must not do any act which is destructive or permanently injurious to the property if the security is insufficient or will be rendered insufficient by such an act, A security is insufficient unless the value of the mortgage property exceeds 1/3 of the amount due.
