Suit for sale necessary for bringing mortgaged property to sale
Full Text
(1) Where a mortgagee has obtained a decree for the payment of money in satisfaction of a claim arising under the mortgage, he shall not be entitled to bring the mortgaged property to sale otherwise than by instituting a suit for sale in enforcement of the mortgage, and he may institute such suit notwithstanding anything contained in Order II, rule 2.
(2) Nothing in sub-rule (1) shall apply to any territories to which the Transfer of Property Act, 1882 (4 of 1882), has not been extended.
Plain English Summary
Prohibits a mortgagee who obtained a simple money decree for a claim arising under the mortgage from selling the mortgaged property in execution without instituting a proper mortgage suit for sale, expressly overriding Order II Rule 2.
Key Legal Elements
- Statutory Shield for Mortgagor: Prevents mortgagee from bypassing the mortgagor's equity of redemption and 6-month grace period through a simple money execution.
- Claim Arising Under Mortgage: Applies where the money decree is founded on the mortgage transaction (e.g. claim for interest or personal covenant).
- Mandatory Suit for Sale: Mortgagee must file a full mortgage suit under Rule 4 to bring the mortgaged security to sale.
- Exemption from Order II Rule 2: Overrides the bar of splitting claims under Order II Rule 2, explicitly permitting a subsequent mortgage suit.
- Attachment Permitted, Sale Barred: Mortgagee may attach the mortgaged property in execution of the money decree, but cannot auction it without a mortgage suit.
Practical Note
Protection of Equity of Redemption & Exemption from O. 2 R. 2: 1. Supreme Court Principle — C. Cheriathan v. P. Narayanan Embranthiri (2009) 2 SCC 673: The Supreme Court highlighted that Rule 14 was enacted for the protection of the mortgagor. If a mortgagee were allowed to sell the equity of redemption in execution of a simple money decree, the mortgagor would be deprived of the statutory rights conferred under Order XXXIV (accounting, 6-month redemption window, and saving grace under Rule 5). Hence, auction sale in violation of Rule 14 is voidable at the instance of the mortgagor. 2. Overriding Order II Rule 2: If a mortgagee sues only for accrued interest and gets a money decree, Order II Rule 2 would normally bar a second suit for principal. Rule 14 contains an express non obstante override allowing the mortgagee to file a subsequent suit for sale.
हिंदी पाठ
(1) जहां बंधकदार ने बंधक के अधीन उद्भूत होने वाले किसी दावे की तुष्टि में धन के संदाय के लिए कोई डिक्री प्राप्त की है, वहां वह बंधक के प्रवर्तन में विक्रय के लिए वाद संस्थित किए बिना बंधक संपत्ति को बेचने का हकदार नहीं होगा, और वह आदेश 2, नियम 2 में किसी बात के होते हुए भी ऐसा वाद संस्थित कर सकेगा।
(2) उप-नियम (1) की कोई भी बात उन राज्यक्षेत्रों पर लागू नहीं होगी जिन पर संपत्ति अंतरण अधिनियम, 1882 (1882 का 4) का विस्तार नहीं किया गया है।