Mortgage of Immovable Property in India
I. Who is a Mortgagor?
A mortgagor is the person who borrows money and transfers an interest in immovable property to the lender (mortgagee) as security for repayment of the debt (Sec. 58, TPA).
II. Rights of Mortgagor (Sections 60–66, TPA)
Right of Redemption (Sec. 60)
Fundamental right of the mortgagor to get back his property on repayment of the mortgage money.
Even if the due date is passed, redemption is possible unless the right is extinguished by law.
Case: K. Saradamani vs. Rajalakshmi (1992) – SC held that right of redemption is a statutory right, cannot be taken away by contract.
Right to Transfer Property to a Third Person (Sec. 60A)
Mortgagor can ask the mortgagee to deliver possession to a third party nominated by him after redemption.
Right to Inspection and Copies (Sec. 60B)
Mortgagor can inspect or take copies of title deeds in the custody of mortgagee.
Right to Accession (Sec. 63)
If the mortgaged property gets any improvement/addition during the mortgage, the mortgagor has the right to it after redemption.
Case: Narandas Karsondas vs. S.A. Kamtam (1977) – Mortgagor is entitled to accession as owner after redemption.
Right to Improvements (Sec. 63A)
If the mortgagee makes improvements to the property, the mortgagor is entitled to get them back on redemption, unless the improvements were necessary to preserve the property.
Right to Mortgagor’s Power to Lease (Sec. 65A)
Mortgagor in possession has the right to lease the property in the ordinary course of management.
III. Liabilities of Mortgagor (Sec. 65–66, TPA)
Liability to Pay Mortgage Money
Mortgagor must pay principal and interest as per agreement.
Covenant of Title (Sec. 65(a))
Mortgagor is deemed to have assured the mortgagee that he has title to the property. If title is defective, mortgagor is liable.
Case: Abdul Majid vs. Gauri Shankar (1913) – Mortgagor must compensate if he mortgages property without proper title.
Liability to Disclose Defects (Sec. 65(b))
Mortgagor must disclose material defects in the property known to him but not to the mortgagee.
Liability to Pay Public Charges (Sec. 65(c))
Mortgagor must pay all government dues, land revenue, and taxes.
Liability Not to Commit Waste (Sec. 66)
Mortgagor in possession must not commit acts destructive to the property’s value.
Case: Pomal Kanji Govindji vs. Vrajlal Karsandas Purohit (1989) – Mortgagor must maintain the property and cannot deliberately reduce its value.
IV. Conclusion
The rights of mortgagor mainly revolve around redemption, enjoyment, and preservation of ownership even during the mortgage.
The liabilities of mortgagor ensure that the mortgagee’s security is protected.
Courts have consistently held that while the mortgagee has an interest, the ownership remains with the mortgagor, subject to repayment.
⚖️ For exams:
Write definition + sections (60–66 TPA) + rights + liabilities + 4–5 case laws.
Conclude by saying: “The mortgagor remains the real owner; the mortgage is only a transfer of interest, not ownership.”
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