Copy on equity of redemption

Equity of Redemption in Indian Law

Definition and Legal Framework

The equity of redemption refers to the right of a mortgagor to reclaim their mortgaged property upon payment of the mortgage debt. This right is recognized under Section 60 of the Transfer of Property Act, 1882, which establishes the statutory basis for redemption in India. The term equity of redemption is often used interchangeably with right of redemption in Indian jurisprudence Kharati Ram VS Ram Lal - Punjab and Haryana (1950).

Nature of the Equity of Redemption:
The equity of redemption is a fundamental right that allows mortgagors to reclaim their property after defaulting on payments, provided they fulfill their obligations Kharati Ram VS Ram Lal - Punjab and Haryana (1950).
It is co-extensive with the right of foreclosure, meaning that the mortgagor''s right to redeem arises after a specified period from the date of the mortgage deed Krishnan VS Narayana Pillai - Kerala (1976).
Ownership and Redemption Rights:
A sharer in the equity of redemption can redeem the entire mortgage, even if other interested parties are not included in the suit CHANDU AGASTI VS CHANDRABALI KALAR - Orissa (1964).
The purchase of the equity of redemption by a mortgagee results in the merger of the mortgage, eliminating any subsisting mortgage that could be redeemed by subsequent mortgagees Hari Singh VS Chand Singh - Punjab and Haryana (1971).
Clogs on the Equity of Redemption:
Any agreement that restricts the mortgagor''s right to redeem, known as a clog, is generally considered invalid. For instance, conditions that treat a mortgage as a sale after a certain period are deemed a clog on the equity of redemption Sushil Kumar Singh And Another VS Braj Mohan Singh - Patna (1980).

In a notable case, the court found that the equity of redemption was thavazhi property, allowing the redemption of a possessory mortgage based on the customs and management of thavazhi affairs Narayana Pillai VS Raghavan Pillai - Kerala (1952).
Another case established that the omission to include co-mortgagors in a redemption suit does not invalidate the suit, affirming that a sharer can redeem the entire mortgage CHANDU AGASTI VS CHANDRABALI KALAR - Orissa (1964).

The equity of redemption is a critical right for mortgagors in India, protected under statutory law and judicial precedents.
Legal practitioners should ensure that any agreements related to mortgages do not impose invalid conditions that could be construed as clogs on the equity of redemption.
It is advisable to carefully assess the ownership and management of thavazhi properties in cases involving joint family properties to determine the rightful claim to the equity of redemption.