Costs of mortgagee subsequent to decree
Full Text
In finally adjusting the amount to be paid to a mortgagee in case of a foreclosure, sale or redemption, the Court shall, unless in the case of costs of the suit the conduct of the mortgagee has been such as to disentitle him thereto, add to the mortgage-money such costs of the suit and other costs, charges and expenses as have been properly incurred by him since the date of the preliminary decree for foreclosure, sale or redemption up to the time of actual payment:
Provided that where the mortgagor, before or at the time of the institution of the suit, tenders or deposits the amount due on the mortgage, or such amount as is not substantially deficient in the opinion of the Court, he shall not be ordered to pay the costs of the suit to the mortgagee and the mortgagor shall be entitled to recover his own costs of the suit from the mortgagee, unless the Court, for reasons to be recorded, otherwise directs.
Plain English Summary
Provides for adding subsequent legitimate costs, charges, and expenses incurred by the mortgagee up to actual realization to the mortgage debt, while penalizing the mortgagee in costs if the mortgagor tendered the full debt prior to or at the institution of the suit.
Key Legal Elements
- Subsequent Costs Addition: Legitimate legal expenses and property preservation costs post-preliminary decree are tacked to mortgage debt.
- Disentitlement for Misconduct: Mortgagee denied costs if guilty of vexatious litigation, refusing reasonable tender, or inflating accounts.
- Proviso Protection for Mortgagor: If mortgagor tenders/deposits the debt before or at suit filing, he is exempt from mortgagee's costs.
- Reverse Costs Against Mortgagee: Mortgagor who made valid pre-suit tender is entitled to recover his own legal costs from the obstinate mortgagee.
Practical Note
Strategic Pre-Suit Tender & Cost Immunity: 1. Protection by Pre-Suit Deposit: The Proviso to Rule 10 is an indispensable weapon for a mortgagor. If the mortgagor tenders the full mortgage debt (or substantially the entire sum under Section 83 TPA) before the suit is filed and the mortgagee recalcitrantly refuses to accept it, the mortgagee forfeits all rights to claim costs and will be saddled with the mortgagor's costs. 2. Genuine Expenditures Only: The mortgagee must prove that post-decree expenditures were necessary to preserve the mortgage security (e.g. payment of municipal taxes or urgent structural repairs).
हिंदी पाठ
पुरोबंध, विक्रय या मोचन की दशा में बंधकदार को संदत्त की जाने वाली रकम का अंतिम रूप से समायोजन करने में, न्यायालय (जब तक कि वाद के खर्चों की दशा में बंधकदार का आचरण ऐसा न रहा हो कि वह उसके लिए अनधिकृत हो जाए) बंधक-धन में वाद के ऐसे खर्चे और अन्य खर्चे, प्रभार तथा व्यय जोड़ेगा जो पुरोबंध, विक्रय या मोचन की प्रारंभिक डिक्री की तारीख से वास्तविक संदाय के समय तक उसके द्वारा उचित रूप से उपगत किए गए हों:
परंतु जहां बंधककर्ता वाद के संस्थित किए जाने से पूर्व या संस्थित किए जाने के समय बंधक पर शोध्य रकम, अथवा न्यायालय की राय में ऐसी रकम जो सारभूत रूप से कम नहीं है, निविदत्त (Tender) या जमा करता है, वहां उसे बंधकदार को वाद के खर्चे संदत्त करने का आदेश नहीं दिया जाएगा और बंधककर्ता बंधकदार से वाद के अपने स्वयं के खर्चे वसूल करने का हकदार होगा, जब तक कि न्यायालय लेखबद्ध किए जाने वाले कारणों से अन्यथा निदेश न दे।