Final decree in foreclosure suit
Full Text
(1) Where, before a final decree debarring the defendant from all right to redeem the mortgaged property has been passed, the defendant makes payment into Court of all amounts due from him under sub-rule (1) of rule 2, the Court shall, on application made by the defendant in this behalf, pass a final decree—
(a) ordering the plaintiff to deliver up the documents referred to in the preliminary decree, and, if necessary,—
(b) ordering him to re-transfer at the cost or the defendant the mortgaged property as directed in the said decree, and also, if necessary,—
(c) ordering him to put the defendant in possession of the property.
(2) Where payment in accordance with sub-rule (1) has not been made, the Court shall, on application made by the plaintiff in this behalf, pass a final decree declaring that the defendant and all persons claiming through or under him or debarred from all right to redeem the mortgaged property and also, if necessary, ordering the defendant to put the plaintiff in possession of the property.
(3) On the passing of a final decree under sub-rule (2), all liabilities to which the defendant is subject in respect of the mortgage or on account of the suit shall be deemed to have been discharged.
Plain English Summary
Authorizes the final decree in foreclosure suits—either restoring property and title deeds to the defendant upon timely deposit, or extinguishing the mortgagor's right of redemption and discharging personal liabilities upon default.
Key Legal Elements
- Redemption Before Final Decree: Defendant can make payment at any moment before the final decree is formally signed.
- Final Decree for Plaintiff (Sub-rule 2): On non-payment, plaintiff applies for final decree permanently debarring redemption.
- Delivery of Possession: Court can order defendant to deliver vacant possession to plaintiff without a separate suit.
- Discharge of Personal Liability (Sub-rule 3): Passing of final decree of foreclosure completely wipes out all debt and mortgage liabilities; no subsequent personal money decree can be sought under Rule 6.
- Irrevocable Extinguishment: Once final foreclosure decree is sealed, equity of redemption is forever dead.
Practical Note
Total Extinguishment of Debt & Title Transfer: 1. Complete Discharge of Liability: Under Sub-rule (3), when a final decree for foreclosure is passed, all mortgage liabilities are deemed discharged. The mortgagee takes the property in absolute satisfaction of the debt and cannot subsequently claim any deficit or sue on a personal covenant. 2. Limitation for Applying for Final Decree: An application for a final decree under Order XXXIV Rule 3 is governed by Article 137 of the Limitation Act, 1963 (3 years from the date fixed for payment in the preliminary decree). If no application is filed within 3 years, the preliminary decree cannot be converted into a final decree, leaving title in suspended animation.
हिंदी पाठ
(1) जहां प्रतिवादी को बंधक संपत्ति का मोचन कराने के समस्त अधिकारों से विवर्जित (Debar) करने वाली अंतिम डिक्री पारित किए जाने से पूर्व, प्रतिवादी नियम 2 के उप-नियम (1) के अधीन शोध्य सभी रकमों का न्यायालय में संदाय कर देता है, वहां न्यायालय इस निमित्त प्रतिवादी के आवेदन पर एक अंतिम डिक्री पारित करेगा जिसमें—
(क) वादी को प्रारंभिक डिक्री में निर्दिष्ट दस्तावेजों को परिदत्त करने का आदेश दिया जाएगा, और यदि आवश्यक हो तो—
(ख) प्रतिवादी के खर्चे पर बंधक संपत्ति को उसे पुनः अंतरित करने का आदेश दिया जाएगा, तथा यदि आवश्यक हो तो—
(ग) प्रतिवादी को संपत्ति का कब्जा सौंपने का आदेश दिया जाएगा।
(2) जहां उप-नियम (1) के अनुसार संदाय नहीं किया गया है, वहां न्यायालय वादी के आवेदन पर ऐसी अंतिम डिक्री पारित करेगा जिसमें यह घोषित किया जाएगा कि प्रतिवादी और उसके अधीन दावा करने वाले सभी व्यक्ति बंधक संपत्ति के मोचन के समस्त अधिकारों से विवर्जित कर दिए गए हैं और यदि आवश्यक हो तो प्रतिवादी को वादी को कब्जा सौंपने का आदेश देगा।
(3) उप-नियम (2) के अधीन अंतिम डिक्री पारित होने पर, वे समस्त दायित्व जिनके अध्यधीन प्रतिवादी बंधक के संबंध में या वाद के मद में है, उन्मोचित (Discharged) समझे जाएंगे।