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A. N. RAY, JASWANT SINGH, M. H. BEG
Narandas Karsondas – Appellant
Versus
S. A. Kamtam – Respondent
Key Points: - The judgment holds that the mortgagor's right of redemption under Section 60 of the Transfer of Property Act survives unless extinguished by the act of the parties, and that completion of sale by a registered conveyance is necessary to extinguish redemption rights. (!) (!) - It states that mere contract for sale or power to sell (without registration of conveyance) does not extinguish the mortgagor's equity of redemption; extinction occurs only after proper registration of the conveyance. (!) (!) - It explains that the mortgagee’s power to sell without court intervention does not automatically deprive the mortgagor of redemption, and the sale is not complete until registration, preserving redemption until then. (!) (!) - The decision notes that there must be a complete sale by registration for the title transfer to affect the mortgagor’s right to redeem; otherwise, redemption can still be exercised. (!) (!) - It clarifies that the mortgagee’s actions as an agent of sale do not extinguish the mortgagor’s right; the right to redeem arises from the mortgagor’s own claim and survives until registration completes. (!) (!) - The appellate court’s finding that there was no complete sale within the meaning of the statute, so equity of redemption was not lost, is affirmed. (!) - The judgment aligns with the Bombay decision’s view that the right to redeem is not extinguished by a contract of sale in the exercise of the power of sale; it is not extinguished until a registered conveyance is completed. (!)
Judgment
A. N. RAY, C.J.I. :- This appeal by special leave is from the judgment dated 18 April 1975 of the Maharashtra State Co-operative Appellate Court.
2. The question for consideration in this appeal is whether a mortgagor can exercise his right of redemption after a mortgagee under an English Mortgage with power to sell mortgaged property without the intervention of the court gives notice to the mortgagor to sell the mortgaged property by public auction and sells it by public auction.
3. The appellant is the auction purchaser. The respondents are Flora Co-operative Housing Society in liquidation the mortgagors (hereinafter referred to as the Society) and the Maharashtra Co-operative Housing Finance Society Ltd., the mortgagee (hereinafter referred to as the mortgagee).
4. In 1964 the Society was registered as a Housing Society with 12 members. The paid up capital of the Society was Rs. 21,000/-. The society wanted 12 flats to be constructed in one structure of ground and two upper floors. The Society purchased plot No. 153 in Santa Cruz at Bombay, measuring 1002 sq. yards. The price was Rs. 1,02,000/-.
5. In 1966 the Society mortgaged the land and the incomplete structure in favour
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