By Accommodation Times News Services
M/S. L.K. TRUST v. EDC LTD. & ORS.
(Civil Appeal Nos. 4214-4215 of 2011)
MAY 10, 2011 [J.M. PANCHAL AND CYRIAC JOSEPH, JJ.]
Transfer of Property Act, 1882 – ss. 60 and 54 – Right of redemption – Nature and scope of – When can be exercised and when extinguished – Held: Right of redemption is a statutory right – A mortgage being a security for the debt, the right of redemption continues although the mortgagor fails to pay the debt on the due date – Any provision inserted to prevent, evade or hamper redemption is void – Right of redemption is an incident of a subsisting mortgage and subsists so long as the mortgage itself subsists – It stands extinguished on execution of conveyance and the registration of transfer of the mortgagor’s interest by registered instrument or by decree of a court – Dismissal of an earlier suit for redemption whether as abated or as withdrawn or in default would not debar the mortgagor from filing a second suit for redemption so long as the mortgage subsists – On facts, no sale/transfer worth the name of the mortgaged property had taken place in favour of the contender of the mortgaged property – There was no concluded contract between the contender and the mortgagee – Thus, it cannot be said that that the mortgagor had lost its right to redeem the mortgaged property or that by the acts of the contender for the mortgaged property and mortgagee, the right of the mortgagor to redeem the property was extinguished – Acceptance of proposal of the mortgagor by the mortgagee to permit it to redeem the property cannot be said to be illegal in any manner – The statutory right of redemption available to the mortgagor was never lost – Mortgage.