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Q1. Under TPA which of the following mortgages with a value of Rs. 100/ or above is not compulsorily registrable:

(a) Simple mortgage

(b) Mortgage by Conditional Sale

(c) English Mortgage

(d) Mortgage by Deposit of Title-deeds

Ans.: (d)

Explanation: Section 59 of the TP Act gives the procedure for effecting a valid mortgage.

It states that if the principal money secured is 100 Rupees or upwards, a mortgage deed needs to be registered, signed by the mortgagor, and attested by at least two witnesses.

Mortgage by Deposit of Title Deeds (Equitable Mortgage) s. 58 (f) is an exception to this general rule. 

In other cases, the mortgage may be affected either by the above-mentioned procedure or by delivery of the property (except in the case of a Simple Mortgage). In a Simple Mortgage the Mortgagor binds himself personally without delivering the possession to the mortgagee.


Q2. In which of the following mortgages, the mortgagor is required to deliver possession of the mortgaged property to the mortgagee?

(a) English mortgage

(b) Usufructuary mortgage

(C) Mortgage by conditional sale

(d) Anomalous mortgage


Ans.: (b)

Explanation: Usufructuary Mortgage is defined under s. 58 (d) 

The Mortgagor authorizes the Mortgagee to retain such possession until payment of the mortgage money and to receive the rents and profits accruing from it either in whole or in part.

There is no time limit fixed.

There is no personal liability on the Mortgagor.


Q3. What is the default interest payable under Sections 63 & 63A of the Transfer of Property Act, 1882?

(a) 8% per annum

(b) 9% per annum

(c) 10% per annum

(d) Interest rate is not mentioned in the Section

Ans.: (b)


S. 63 of the TP Act: If the possession of the Mortgage Property receives any accession while the property was in the possession of the Mortgagee, the Mortgagor is entitled to such accession at the time of Redemption.

The Mortgagor will be liable to pay proper costs along with interest at the rate of nine percent P.A. (when the rate of int. is not fixed), to the Mortgagee if the accession was acquired at his cost and it is not separable from the mortgage property.

S. 63 A of the TP Act deals with Improvements to the property. Under this section, the Mortgagor is entitled to improvements made in the property during the mortgage but is not liable to pay the costs. However, the Mortgagor will be liable to pay the costs along with interest (9% p.a if not fixed) if – 

The Mortgagee paid the cost, or

It was necessary to preserve the property, or 

It was necessary to prevent the property from becoming insufficient security, or

It was done in compliance with a Public Authority’s orders.


Q4. When the mortgagor's right to redeem accrues, the mortgagee has a right to enforce:

(a) His security 

(b) His interest

(c) Only (b) is correct

(d) None of the above


Ans.: (b)

Explanation: When the mortgagor's right to redeem accrues the mortgagee has a right to enforce his interest.

Right to Redeem is provided under section 60 of the TP Act.

The Mortgagor has the right to claim:

(i) Delivery of the documents/ deeds relating to the mortgaged property

(ii) Delivery of the possession of the Property

(iii) Re-transfer of the mortgaged property either to himself or to a third person (at the cost of the mortgagor)

(iv) Acknowledgement in writing 

The doctrine of Clog on Redemption is also given under section 60.

Q5. Remedy of 'foreclosure' is available in which one of the following mortgages, namely in:

(a) Usufructuary mortgage

(b) Mortgage by conditional sale

(c) Simple mortgage

(d) English mortgage

Ans.: (b)


Mortgage by Conditional Sale as given u/s 58 (c) states that the mortgagor ostensibly sells the mortgaged property to the mortgagee on the condition that the sale shall become absolute on default of repayment.

The right of Foreclosure cannot be abrogated by parties. However, the Right of Foreclosure is not available when a Decree for Redemption has been made.

A suit to obtain a decree that a mortgagor shall be absolutely debarred of his right to redeem the mortgaged property is called the Right of Foreclosure (s. 67 of TP Act).

Q6. In which of the following cases has the Supreme Court held that the 'Right of redemption of mortgagor stands extinguished when the sale of the mortgaged property is effectuated in court auction': 

(a) Embassy Hotel (P) Ltd. vs. Gajaraj & Co.

(b) Punjab & Sindh Bank vs. Punjab Breeders Ltd.

(c) State of H.P. vs. Rajesh Chandra Sood

(d) Unitech vs. Union of India


Ans: (a)


The supreme court in the case of Embassy Hotels Pvt Ltd. vs. M/s Gajraj & Co. & Ors. Civil appeal no. 5884 of 2004, held that the right of redemption of the mortgagor stands extinguished when the sale of the mortgaged property is effectuated in court auction. 

The right of Redemption is given under Section 60 of the TP Act.



Q7. In which of the following cases did the Supreme Court recognize the principle ‘once a mortgage, always a mortgage.’

(a) Indira Kaur vs. Sheo Lal Kapoor

(b) Mrutanjay Pane vs. Narmada Bake Sasumal

(c) Sidh Kamal Nayak vs. Bira Nayak

(d) Chandi Rani vs. Kamal Rani

Ans.: (b)


Supreme Court recognised this principle in the case of Mrutanjay Pane vs. Narmada Bake Sasumal 1961 AIR 1353. 

Once a mortgage always a mortgage means that Mortgage is always redeemable.


Q8. In which of the following cases did The principle ‘Once a mortgage, always a mortgage’ evolve:

(a) Harris vs. Harris

(b) Noakes vs. Rice

(c) Seth Ganga Dhar vs. Shankarlal 

(d) Reeve vs. Lisle

Ans.: (a)


Any condition that obstructs the right of redemption will be held as a clog on redemption and will be null and void.

In Harris v. Harris (1681) 1 Vern 33, Lord Nottingham established the principle: 'Once a mortgage, always a mortgage. This is a doctrine to protect the mortgagor’s right of redemption and the maxim is reiterated in a number of cases like Noakes v. Rice.


Q9. In which of the following cases, did the Supreme Court hold the Doctrine of a clog on the equity of redemption as a rule of justice, equality, and good conscience?

(a) Apte vs. Price

(b) Murari Lal vs. Dev Karan

(c) Banarsi Lal vs. Puran Chand

(d) None of the above

Ans.: (b)


In the case of Murari Lal vs. Devkaran, a condition was imposed by the mortgage deed that the mortgaged money must be paid within 15 years; otherwise, the mortgagee would become the owner of the property. It was held that the condition is void as it is unreasonable and implies an impediment to the mortgagor's right to redemption.

It was held in the case of Stanley vs. Wilde that The Right of Redemption is an absolute right, a statutory right, and any condition that obstructs this right is null and void.


Q10. Redemption is the heart of mortgage was observed by.

(a) Lord Develin

(b) Lord Davey

(c) Lord Halsbury

(d) None of the above


Ans.: (c)

Explanation: Lord Halsbury in Noakes v Rice 1902 A.C. 24, observed that redemption is the heart of a mortgage. It is related to the mortgagor’s right of redemption.

Mortgagor’s right of redemption is co-extensive with the mortgagee's right of foreclosure and sale.

The right of redemption can be extinguished by the Act of parties and a decree of the court

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