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No Restoration of Possession After Right of Redemption is Extinguished
Introduction
In property law, the right of redemption allows a mortgagor to reclaim their property by repaying the loan, even after long periods. However, this right isn't infinite. Once extinguished, courts typically deny restoration of possession. The query No Restoration of Possession after Right of Redemption is Extinguished highlights a critical boundary: when does this happen, and what remedies remain? This post examines Indian case law, focusing on the Transfer of Property Act (TPA), 1882, SARFAESI Act, 2002, and Limitation Act, 1963, to explain these principles.
Understanding this prevents futile litigation. Note: This is general information based on precedents; consult a lawyer for specific advice, as outcomes vary by facts.
What is the Right of Redemption?
Under Section 60 of the TPA, a mortgagor has a statutory right to redeem the property by paying the mortgage amount, unless extinguished by act of parties or court decree. This is called the equity of redemption—a legal safeguard treating mortgages as redeemable security, not ownership transfer. Narayan Deorao Javle (Deceased) Through Lrs. VS Krishna - 2021 5 Supreme 577
Key principles:
- Once a mortgage, always a mortgage until formally ended. Singh Ram (D) Thr. L. Rs. VS Sheo Ram - 2014 5 Supreme 749
- Applies to simple, usufructuary, and equitable mortgages.
- Extinguishment requires:
- Mutual agreement.
- Court decree (e.g., foreclosure).
- Lapse under limitation in specific cases. Ravinder Kaur Grewal VS Manjit Kaur - 2019 7 Supreme 559
Equity of redemption means a right to redeem property based upon equitable principles. Narayan Deorao Javle (Deceased) Through Lrs. VS Krishna - 2021 5 Supreme 577
When Does the Right of Redemption Extinguish?
The right doesn't vanish automatically with time. Courts emphasize it persists until specific triggers.
1. In Usufructuary Mortgages
Usufructuary mortgages (where mortgagee takes possession and enjoys rents) have special rules under Section 62 TPA.
- Limitation for redemption/recovery of possession (Article 61, Limitation Act) starts when mortgage money is paid out of rents/profits or tendered, not from mortgage date. Singh Ram (D) Thr. L. Rs. VS Sheo Ram - 2014 5 Supreme 749
- Right of usufructuary mortgagor to recover possession commences when mortgage money is paid out of rents and profits... Until then, limitation does not start. Singh Ram (D) Thr. L. Rs. VS Sheo Ram - 2014 5 Supreme 749
- No 30-year auto-extinguishment; mortgagee doesn't become owner merely by time lapse. VISHWA NATH Vs RAM KISHAN - 2025 Supreme(Online)(P&H) 4778
Example: A 1903 mortgage suit wasn't barred after 60+ years, as no payment triggered limitation. Singh Ram (D) Thr. L. Rs. VS Sheo Ram - 2014 5 Supreme 749
2. Under SARFAESI Act
Banks invoke Section 13 SARFAESI for NPAs, taking possession and auctioning.
- Pre-2016: Redemption until sale confirmation.
- Post-2016 amendment to Section 13(8): Right extinguishes on auction notice publication. Borrowers can't redeem post-notice, even if ready to pay. Pal Alloys and Metal India Private Limited VS Allahabad Bank - 2021 Supreme(P&H) 1600 02300078483
The mortgagor’s right to redeem will survive until there has been completion of the sale by the mortgagee executing and registering a deed of conveyance. But under SARFAESI, sale notice cuts it off. Sree Jayalakshmi Textiles VS International Asset Reconstruction Company Private Limited - 2015 Supreme(Kar) 1310
In one case, sale stood cancelled, but bank had to refund after deducting dues—no possession restoration without fresh auction. Mathew Varghese VS M. Amritha Kumar - 2014 Supreme(SC) 96
3. Adverse Possession and Limitation
- Article 65 Limitation Act: 12 years adverse possession perfects title, extinguishing owner's redemption right. Once 12 years' period of adverse possession is over, even owner's right to eject him is lost. Ravinder Kaur Grewal VS Manjit Kaur - 2019 7 Supreme 559
- Applies if mortgagee transfers excess interest; suit must be within 12 years of knowledge. Dilboo VS Dhanraji (Dead) - 2000 7 Supreme 471
- Date of registration of transfer would be deemed knowledge. Dilboo VS Dhanraji (Dead) - 2000 7 Supreme 471
Purchaser from mortgagee gets protected title post-limitation.
4. Court Decrees and Foreclosure
- Foreclosure decree without impleading all parties (e.g., transferees) is void; redemption survives. Narayan Deorao Javle (Deceased) Through Lrs. VS Krishna - 2021 5 Supreme 577
- Decree passed at back of transferee mortgagor... cannot be said to be a valid decree. Narayan Deorao Javle (Deceased) Through Lrs. VS Krishna - 2021 5 Supreme 577
- Execution purchaser of equity of redemption retains redemption right. Samarendra Nath Sinha VS Krishna Kumar Nag - 1966 Supreme(SC) 306
No Restoration of Possession: Key Scenarios
Once extinguished, courts refuse possession restoration:
| Scenario | Extinguishment Trigger | Outcome |
|----------|-----------------------|---------|
| SARFAESI Auction | Sale notice issued Mathew Varghese VS M. Amritha Kumar - 2014 Supreme(SC) 96 | No redemption; sale final unless vitiated by fraud. |
| Adverse Possession | 12 years under Art. 65 Ravinder Kaur Grewal VS Manjit Kaur - 2019 7 Supreme 559 | Possessory title perfected; no ejectment. |
| Foreclosure Decree | Valid decree binding parties Narayan Deorao Javle (Deceased) Through Lrs. VS Krishna - 2021 5 Supreme 577 | Redemption lost; possession to decree-holder. |
| Usufructuary Lapse | Post-payment refusal (Art. 61) Singh Ram (D) Thr. L. Rs. VS Sheo Ram - 2014 5 Supreme 749 | Time-barred suit dismissed. |
Sale already effected by Respondent Bank shall stand cancelled automatically... balance amount alone shall be refunded. But no automatic possession back—fresh auction needed. Mathew Varghese VS M. Amritha Kumar - 2014 Supreme(SC) 96
In execution sales, non-impleaded parties retain rights, but post-extinguishment, no restoration. BIPRA CHARAN SARKAR VS RUPESWARI DASI - 1953 Supreme(Cal) 72
Exceptions and Remedies
- Pre-extinguishment: Tender payment anytime in usufructuary cases. Mercy VS Desan - 2021 Supreme(Mad) 3173
- Next friend suits for deities (e.g., Ayodhya case) if no shebait. M. Siddiq (D) Thr. Lrs. VS Mahant Suresh Das - 2019 8 Supreme 1
- Article 142 Constitution: Rare equitable relief, but not routine. Narayan Deorao Javle (Deceased) Through Lrs. VS Krishna - 2021 5 Supreme 577
Remedies post-extinguishment:
1. Challenge sale for irregularity/fraud.
2. Claim surplus sale proceeds.
3. Adverse possession defense if applicable.
Key Case Takeaways
- SARFAESI Cases: No redemption post-auction notice; focus on compliance. Pal Alloys and Metal India Private Limited VS Allahabad Bank - 2021 Supreme(P&H) 1600
- Usufructuary: Indefinite redemption until discharged. Once a mortgage always a mortgage and is always redeemable. Mercy VS Desan - 2021 Supreme(Mad) 3173
- Limitation Traps: Prove knowledge date; registration = deemed notice. Dilboo VS Dhanraji (Dead) - 2000 7 Supreme 471
Conclusion
The right of redemption is robust but not eternal. In most cases, no restoration of possession follows extinguishment via auction notice, limitation, or decree. Borrowers must act before triggers like SARFAESI notices. Property owners facing auctions should seek early legal aid to tender dues.
Key Takeaways:
- Monitor NPAs to redeem pre-notice.
- In usufructuary, pay/tender to start limitation clock.
- Challenge only on fraud/irregularity post-extinguishment.
This analysis draws from Supreme Court and High Court precedents. Legal outcomes depend on facts—professional advice essential.
Disclaimer: This post provides general insights, not legal advice. Cases vary; consult an attorney.
Search Results for "No Possession Restoration After Redemption Right Ends"
2014 0 Supreme(SC) 96 • India - Supreme Court
A.K.PATNAIK, FAKKIR MOHAMED IBRAHIM KALIFULLA
notice Section Act on Respondent Bank is stated to have taken possession of mortgaged property by invoking Section read along with ... - When transaction became non performing asset Respondent Bank filed recovery along with interest annum – Respondent Bank also issued ... shall arrange for refund of balance amount Respondents after meeting whatever tax liability to Income Tax Department or any other ... that the mortgagor's right of redempt....
2019 7 Supreme 559 • India - Supreme Court
of his possession thereby restraining the defendant from interfering in the possession or for restoration of possession in case ... his title, what is the remedy of a person to avoid sale and interference in possession or for its restoration in case of dispossession ... ;Art.65>65 - Limitation of 12 years - Once right is extinguished, another p....
2019 8 Supreme 1 • India - Supreme Court
RANJAN GOGOI, S. A. BOBDE, D. Y. CHANDRACHUD, ASHOK BHUSHAN, S. ABDUL NAZEER
was a suit for restoration of management and charge so as to enable Akhara to have benefit of usufruct in discharge of its obligations ... religious practice – It cannot be said that pious purpose is also extinguished due to such submersion – Establishment of image of ... be held to be a suit for possession is a submission which has no valid basis. ... (ii) A su....
2019 0 Supreme(SC) 1271 • India - Supreme Court
ROHINTON FALI NARIMAN, SURYA KANT, V.RAMASUBRAMANIAN
unreasonable restriction on litigant’s right to carry on business under Article 19(1)(g) of the Constitution - Word ‘mandatorily ... Civil Appeal No. 6409 of 2019, Civil Appeal No. 7266 of 2019, Civil Appeal No. 7260 of 2019 dismissed. ... Civil Appeal No. 6266 of 2019 and Civil Appeal No. 6269 of 2019 partly allowed. ... debtor, including by way of#HL....
2000 7 Supreme 471 • India - Supreme Court
S.N.VARIAVA, V.N.KHARE
But if the mortgagee had created an interest in excess of the right enjoyed by him then to recover possession against the third party ... Hanuman, then Ram Charan Teli and then Ramraj and Lakshman took possession the predecessors were put to notice that some right had ... Ram Charan Teli and Ramraj and Lakshman were put in possession of the property sold to them. ... Against a mortgagee to #HL_STA....
1987 0 Supreme(J&K) 110 • India - Jammu and Kashmir
M.L.BHAT
LIMITATION ACT, 1963 - ART. 148 - MORTGAGE - REDEMPTION - RIGHT TO REDEEM - ACCRUES WHEN PAYMENT IS MADE OR TENDERED - NO FIXED ... right to seek recovery of possession was not lost. ... right to seek recovery of possession was not lost. ... The mortgagees right to redeem c....
2025 Supreme(Online)(P&H) 4778 • India - IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Deepak Gupta, J
In this case concerning a claim for the redemption of property after a lapse of more than 30 years, the court analyzed the right ... The court found that the right to recover possession is contingent on payment and that the mere passage of time does not extinguish ... that the appellant did not prove the expiration of the redemption period. ... to recovery #HL_S....
2001 0 Supreme(Ker) 744 • India - Kerala
S.MARIMUTHU
right to redeem - In case there is decree extinguishing right of redemption even if it is an erroneous decree no doubt second suit ... - Favor - Mortgage - First respondent as plaintiff filed above said suit for redemption and recovery of possession of plaint Schedule ... limitation unless right to redeem has been lost in mean....
2021 5 Supreme 577 • India - Supreme Court
HEMANT GUPTA, A.S.BOPANNA
of mortgage – Equity of redemption means a right to redeem property based upon equitable principles – Right of redemption recognised ... amount and when the amount is deposited, he shall be entitled to seek restoration of possession which was taken from him in execution ... respect of land purchased by him has right#....
2021 0 Supreme(Mad) 3173 • India - Madras
of usufructuary mortgage - Redemption and recovery of possession - One had entered into usufructuary mortgage and handed over possession ... had handed over possession of property to mortgagees - Whether there is any time limit for Usufructuary Mortgagor to seek redemption ... . on file of I Additional District Munsif Court, for redemption and ....
2021 5 Supreme 577 • India - Supreme Court
HEMANT GUPTA, A.S.BOPANNA
This Court in Shivdev Singh; Achaldas Durgaji Oswal and Jamila Begum has held that right to redemption is not an equitable relief, it is a statutory right. Therefore, the appellant has a right to redeem land provided the right is not extinguished by decree of the Court. ... The appellant is given three months’ time to deposit the mortgage amount and when the amount is deposited, he shall be entitled to seek restoration of possession which was taken f....
2025 0 Supreme(P&H) 179 • India - IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VIRINDER AGGARWAL
He further pointed that once the right of redemption stood extinguished then a right to foreclosure of mortgage accrued in favour of appellants/plaintiffs as per <a href="./.. ... They being legal heirs of Satehri, so the ascheat of land to provincial Government is bad and <strong>right to redemption of mortgage has extinguished by lapse of time. ... Right of usufructuary mortgagor to recover possession. ... Once the right#HL_END....
2025 0 Supreme(P&H) 1764 • India - IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMARINDER SINGH GREWAL
When a mortgagee in possession acquires a portion of equity of redemption, the mortgage is not extinguished completely. ... A mortgagor’s right of redemption is indefeasible and invariable, which can be extinguished only in a manner known to law. ... Otherwise, a mortgagee who has entered into possession of the mortgaged property under a mortgage will have to give up possession of the property when a suit for redemption is filed unl....
2021 0 Supreme(P&H) 1600 • India - Punjab and Haryana
M. S. RAMACHANDRA RAO, JASJIT SINGH BEDI
’s right of redemption is extinguished. ... It held that the extinction of the right of redemption has to be subsequent to the deed conferring such power and the right of redemption is not extinguished at the expiry of the period; that the equity of redemption is not extinguished by mere contract for sale; and the mortgagor’s right to redeem will ... , that the extinction of the right#HL....
2021 0 Supreme(Mad) 3173 • India - Madras
By reason of sub-rule (1) of Rule 8 of Order 34, a right of redemption recovery of possession is conferred upon the mortgagor of a usufructuary mortgage and the only right conferred on the usufructuary mortgage is to have possession till the final decree of the redemption is passed. ... The right of redemption of mortgagor being a statutory right, the same can be taken away only in terms of the proviso appended to Section 60 of the ....
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