Decree where nothing is found due or where mortgagee has been overpaid
Full Text
Notwithstanding anything hereinbefore contained, if it appears, upon taking the account referred to in rule 7, that nothing is due to the defendant or that he has been overpaid, the Court shall pass a decree directing the defendant, if so required, to re-transfer the property and to pay to the plaintiff the amount which may be found due to him; and the plaintiff shall, if necessary, be put in possession of the mortgaged property.
Plain English Summary
Directs the court to pass a decree ordering the mortgagee to restore the property, deliver possession, and refund any surplus usufruct/overpayment to the mortgagor if the accounting reveals that the mortgage debt was fully discharged or overpaid.
Key Legal Elements
- Overriding Effect: Non obstante clause ensures justice even if the mortgagor initially prayed only for conditional redemption.
- Account-Based Finding: Arises typically in usufructuary mortgages where mortgagee enjoyed rents and profits over decades.
- Decree for Refund of Excess: Directs mortgagee to pay back the surplus amount collected with interest.
- Immediate Re-transfer & Possession: Mandates unconditional re-conveyance and restoration of physical possession to the mortgagor.
Practical Note
Mortgagee in Possession as Trustee of Surplus: 1. Accountability of Usufructuary Mortgagee: Under Section 76 of the Transfer of Property Act, a mortgagee in possession must manage the property as a person of ordinary prudence and account for all rents, profits, and receipts. If the income received exceeds the principal and interest, the mortgagee becomes a constructive trustee for the mortgagor under Section 90 of the Indian Trusts Act. 2. No Separate Suit for Surplus: The mortgagor does not need to file a separate suit for recovery of surplus money collected by the mortgagee; the court in the redemption suit has full jurisdiction under Rule 9 to order refund.
हिंदी पाठ
इसमें इसके पूर्व किसी बात के होते हुए भी, यदि नियम 7 में निर्दिष्ट हिसाब लेने पर यह प्रतीत होता है कि प्रतिवादी (बंधकदार) को कुछ भी शोध्य नहीं है अथवा उसे अति-संदाय (Overpaid) हो चुका है, तो न्यायालय ऐसी डिक्री पारित करेगा जिसमें प्रतिवादी को, यदि अपेक्षित हो तो, संपत्ति पुनः अंतरित करने का और वादी को वह रकम संदत्त करने का निदेश दिया जाएगा जो उसके प्रति शोध्य पाई जाए; और यदि आवश्यक हो तो वादी को बंधक संपत्ति का कब्जा दिलाया जाएगा।