SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1917 Supreme(Mad) 167

IN THE HIGH COURT OF MARAS
V. Perumal Pillai
Versus
R.M.M.R.M. Raman Chettiar
Decided On : 28 April, 1917

Headnote:

Transfer of Property Act - Right to Redeem - The court discussed the provisions of Section 60 of the Transfer of Property Act, which governs the right to redeem in India. The section allows the mortgagor to redeem on payment or tender of the mortgage money, but does not entitle a person interested in a share only of the mortgaged property to redeem his own share only, except in specific circumstances. The court emphasized that the Act ignores the equitable doctrine of consolidation and gives statutory force to the rule that a part of the mortgaged property is not to be redeemed except on payment of the mortgage money. The judgment highlights that the Act does not make any statutory exception in favor of the mortgagor in the case of a mortgagee voluntarily releasing a portion of the mortgaged property.

Fact of the Case:

The court discussed the provisions of Section 60 of the Transfer of Property Act, which governs the right to redeem in India. The section allows the mortgagor to redeem on payment or tender of the mortgage money, but does not entitle a person interested in a share only of the mortgaged property to redeem his own share only, except in specific circumstances.

Finding of the Court:

The court held that, based on the provisions of the Transfer of Property Act, it is not open to give effect to the suggested equity against a mortgagee who releases part of the mortgaged property from the mortgage. The court emphasized that the question has to be decided in accordance with the provisions of the Act, and therefore answered the question referred to them in the negative.

Issues: The issues revolved around the right to redeem under the Transfer of Property Act, specifically in the context of a mortgagee voluntarily releasing a portion of the mortgaged property.

Ratio Decidendi: The court emphasized that the Act ignores the equitable doctrine of consolidation and gives statutory force to the rule that a part of the mortgaged property is not to be redeemed except on payment of the mortgage money. It also highlighted that the Act does not make any statutory exception in favor of the mortgagor in the case of a mortgagee voluntarily releasing a portion of the mortgaged property.

Final Decision: The court answered the question referred to them in the negative, holding that it is not open to give effect to the suggested equity against a mortgagee who releases part of the mortgaged property from the mortgage, in accordance with the provisions of the Transfer of Property Act.

JUDGMENT

1. We think this question must be decided with reference to the provisions of the Transfer of Property Act, and more especially of Section 60 which deals with the right to redeem. Redemption in England is an equitable relief which the Court allows on such terms as have been considered equitable in a long course of decisions. One of the established rules is not to allow redemption of any portion of the mortgaged property except on payment of the whole of the mortgage debt, and further limitations of the right to redeem are to be found in the doctrines of Tacking and Consolidation. In India the right is now governed by Section 60 which gives the mortgagor a right to redeem on payment or tender of the mortgage money but expressly provides that " nothing in this section shall entitle a person interested in a share only of the mortgaged property to redeem his own share only, on payment of a proportionate part of the amount remaining due on the mortgage, except where a mortgagee, or if there are more mortgagees than one, all such mortgagees, has or have acquired, in whole or in part, the share of a mortgagor." This section ignores the equitable doctrine of consolidation which requires the mortgagor to pay something more than the mortgage money as a condition of redemption, but it adopts and gives statutory force to the rule that a part of the mortgaged property is not to be redeemed except on payment of the mortgage money. One exception only is made for the case of the mortgagee having himself acquired part of the mortgaged property. To insist on the mortgagor paying the mortgagee the whole mortgage money in such a case without a proportionate abatement would give the mortgagor an immediate right of suit against the mortgagee or his assignees to recover back by way of contribution what he had paid in excess of his proportionate share, and this the legislature has avoided by the exception. It has not made any such statutory exception in favour of the mortgagor in the case, mentioned in the order of reference, of a mortgagee voluntarily releasing from the suit a portion of the mortgaged property, and we are not at liberty to derogate from the terms of the section by introducing one. Nor can we entertain the argument that such a case can be considered to come within the exception because the action of the mortgagee in releasing part of the mortgaged property is an acquisition by himself within the meaning of the section.

2. If the mortgagor is not entitled to an abatement from the mortgage money on this ground in a suit for redemption, the same rule must, we think, apply in a suit for sale or foreclosure in which the Court has equally to fix the sum on payment of which the mortgagor is entitled to redeem. In Krishna Ayyar v. Muthukumaraswamiya Pillai (1905) I.L.R. 29. M. 217 at p. 224 there is an observation at the close of the judgment " that if the action of the mortgagee (in releasing part of the mortgaged property) has had the effect of extinguishing the mortgage lien upon any portion of the mortgaged property so as to relieve it from the liability to bear its proportion of the debt, he cannot recover more than what the property he proceeds against would be rateably liable for." It is, we think, clear that the release by the mortagee has no such effect, and that the released portion of the mortgaged property remains liable for contribution under Section 82 of the Transfer of Property Act, as pointed out by Chamier and Piggot, JJ., in Jugal Kishore Sahu v. Kedar Nath (1912) I.L.R. 34 A. 606. The owner of part of the mortgaged property who pays off the mortgage debt is entitled under this section to contribution from the rest of the mortgaged property in the absence of a contract to the contrary, that is to say, unless he has deprived himself of that right by contract. We may also observe that the words in the first paragraph of the section " where several properties...are mortgaged to secure one debt" means have been mortgage

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top