Preliminary decree in redemption suit
Full Text
(1) In a suit for redemption, if the plaintiff succeeds, the Court shall pass a preliminary decree—
(a) ordering that an account be taken of what was due to the defendant at the date of such decree for—
(i) principal and interest on the mortgage,
(ii) the costs of suit, if any, awarded to him, and
(iii) other costs, charges and expenses properly incurred by him up to that date, in respect of mortgage-security, together with interest thereon; or
(b) declaring the amount so due at that date; and
(c) directing—
(i) that, if the plaintiff pays into Court the amount so found or declared due on or before such date as the Court may fix within six months from the date on which the Court confirms and countersigns the account taken under clause (a), or from the date on which such amount is declared in Court under clause (b), as the case may be, and thereafter pays such amount as may be adjudged due in respect of subsequent costs, charges and expenses as provided in rule 10, together with subsequent interest on such sums respectively as provided in rule 11, the defendant shall deliver up to the plaintiff, or to such person as the plaintiff appoints, all documents in his possession or power relating to the mortgaged property, and shall, if so required, re-transfer the property to the plaintiff at his cost free from the mortgage and from all encumbrances created by the defendant or any person claiming under him where the defendant claims by derived title, by those under whom he claims, and shall also, if necessary put the plaintiff in possession of the property; and
(ii) that, if payment of the amount found or declared due under or by the preliminary decree is not made on or before the date so fixed, or the plaintiff fails to pay, within such time as the Court may fix, the amount adjudged due in respect of subsequent costs, charges, expenses and interest, the defendant shall be entitled to apply for a final decree—
(a) in the case of a mortgage other than a usufructuary mortgage, a mortgage by conditional sale, or an anomalous mortgage the terms of which provide for foreclosure only and not for sale, that the mortgaged property be sold, or
(b) in the case of a mortgage by conditional sale or such an anomalous mortgage as aforesaid, that the plaintiff be debarred from all right to redeem the property.
(2) The Court may, on good cause shown and upon terms to be fixed by the Court, from time to time, at any time before the passing of a final decree for foreclosure or sale, as the case may be, extend the time fixed for the payment of the amount found or declared due under sub-rule (1) or of the amount adjudged due in respect of subsequent costs, charges, expenses and interest.
Plain English Summary
Governs the preliminary decree in a suit for redemption filed by the mortgagor, ascertaining the debt due, granting 6 months to deposit, and specifying remedies of sale or foreclosure to the mortgagee in case of default.
Key Legal Elements
- Mortgagor's Suit for Redemption: Enforces the statutory right to redeem under Section 60 Transfer of Property Act.
- Account Taking / Determination: Court determines principal, accrued interest, and legitimate mortgagee outgoings.
- Six-Month Grace Period: Mortgagor given up to 6 months to deposit the ascertained amount in court.
- Restoration of Freehold & Title: On deposit, mortgagee must re-convey the property free of encumbrances and deliver possession.
- Mortgagee's Recourse on Default: Depending on mortgage type, mortgagee can seek final decree for court sale or permanent foreclosure.
Practical Note
Doctrine 'Once a Mortgage, Always a Mortgage': 1. Supreme Court Principle: In Achaldas Durgaji Oswal v. Ramvilas Gangabisan Heda (2003) 3 SCC 614 and Singh Ram v. Sheo Ram (2014) 9 SCC 185, the Supreme Court held that the right of redemption is an inviolable incident of a mortgage which cannot be clogged. Even if the preliminary decree fixes 6 months, the mortgagor's right to redeem does not automatically perish upon expiry of the 6 months; it survives until a final decree debarring him or confirming sale is formally passed. 2. Usufructuary Mortgage Exception: Under Clause (c)(ii)(a), a usufructuary mortgagee CANNOT apply for sale or foreclosure; the mortgagor retains the right to redeem whenever the mortgage debt is discharged out of rents and profits.
हिंदी पाठ
(1) मोचन (Redemption) के वाद में, यदि वादी (बंधककर्ता) सफल होता है, तो न्यायालय एक प्रारंभिक डिक्री पारित करेगा जिसमें—
(क) यह आदेश दिया जाएगा कि डिक्री की तारीख पर प्रतिवादी (बंधकदार) को शोध्य मूलधन, ब्याज, वाद-व्यय तथा बंधक-प्रतिभूति के संबंध में किए गए उचित खर्चों का हिसाब लिया जाए; अथवा
(ख) उस तारीख को शोध्य रकम की घोषणा की जाएगी; और
(ग) यह निदेश दिया जाएगा कि—
(i) यदि वादी हिसाब की पुष्टि अथवा घोषणा की तारीख से छह मास के भीतर न्यायालय द्वारा नियत तारीख को शोध्य रकम और नियम 10 व 11 के पश्चातवर्ती खर्चे व ब्याज जमा कर देता है, तो प्रतिवादी बंधक संपत्ति के सभी दस्तावेज वादी को सौंप देगा, संपत्ति को सभी विल्लंगमों से मुक्त कर वादी के खर्चे पर उसे पुनः अंतरित करेगा तथा आवश्यक हो तो वादी को कब्जा देगा; और
(ii) यदि वादी नियत समय में संदाय करने में विफल रहता है, तो प्रतिवादी (बंधकदार) अंतिम डिक्री के लिए आवेदन करने का हकदार होगा—
(क) भोग बंधक या सशर्त विक्रय बंधक से भिन्न बंधक में, कि बंधक संपत्ति बेच दी जाए, अथवा
(ख) सशर्त विक्रय बंधक या विलक्षण बंधक में, कि वादी को मोचन के समस्त अधिकारों से विवर्जित (Debar) कर दिया जाए।
(2) न्यायालय उचित हेतुक दर्शित किए जाने पर अंतिम डिक्री पारित होने से पूर्व संदाय की समय-सीमा बढ़ा सकेगा।