Mortgages by the deposit of title deeds and charges
Full Text
(1) All the provisions contained in this Order which apply to a simple mortgage shall, so far as may be, apply to a mortgage by deposit of title-deeds within the meaning of section 58, and to a charge within the meaning of section 100 of the Transfer of Property Act, 1882 (4 of 1882).
(2) Where a decree orders payment of money and charges it on immovable property on default of payment, the amount may be realised by sale of that property in execution of that decree.
Plain English Summary
Applies simple mortgage provisions to equitable mortgages (deposit of title deeds) and statutory/contractual charges, and allows direct execution sale without a fresh suit where a decree itself creates a charge on immovable property.
Key Legal Elements
- Equitable Mortgage Governed by Order XXXIV: Mortgage by deposit of title deeds under Section 58(f) TPA is treated as a simple mortgage for suit and decree purposes.
- Charges (Section 100 TPA): Statutory or consensual charges enforceable through suit for sale under Rule 4 & 5.
- Sub-rule (2) Execution Shortcut: When a compromise decree or money decree itself creates a charge on property on default, no separate mortgage suit is needed; property can be sold directly in execution.
- Overcoming Former Split in Rulings: Sub-rule (2) was introduced to eliminate the earlier conflict where decree-holders were forced to file fresh suits to enforce charges created in decrees.
Practical Note
Direct Execution of Charge Created by Decree: 1. Supreme Court Landmark — J.K. (Bombay) Pvt. Ltd. v. New Kaiser-I-Hind Spg. & Wvg. Co. (AIR 1970 SC 1041): A charge creates a right in personam to be satisfied out of particular immovable property. While a pre-existing charge requires a suit for sale under Sub-rule (1), Sub-rule (2) creates an express exception: where the court's decree itself creates a charge on specified property for payment of the decretal debt, the decree-holder can execute directly against that property under Order XXI without filing a fresh suit under Order XXXIV. 2. Bank Mortgage Practice: Commercial bank loans secured by deposit of original title deeds (equitable mortgage) are enforced exclusively under Order XXXIV Rule 4 & 15 through suits for sale.
हिंदी पाठ
(1) इस आदेश में अंतर्विष्ट वे सभी उपबंध जो सादा बंधक (Simple mortgage) पर लागू होते हैं, जहां तक हो सके, संपत्ति अंतरण अधिनियम, 1882 की धारा 58 के अर्थ के अंतर्गत हक-विलेखों के निक्षेप द्वारा बंधक (Mortgage by deposit of title deeds) पर, तथा धारा 100 के अर्थ के अंतर्गत भार (Charge) पर लागू होंगे।
(2) जहां कोई डिक्री धन के संदाय का आदेश देती है और संदाय में व्यतिक्रम होने पर उसे किसी स्थावर संपत्ति पर भारित (Charge) करती है, वहां वह रकम उस डिक्री के निष्पादन में उस संपत्ति के विक्रय द्वारा वसूल की जा सकेगी।