viji (no) 18 March 2015

Simple mortgage deed - how to recover

A property has been mortgaged in my name by simple mortgage registered in the Sub Reigstrar office. But it is doubtful that the mortgaged property may not fetch even 75% of the mortgaged amount due to current market conditions - but has the potential to go up for a better price in the future. In the circumstances if the mortgage does not fetch the amount, can the mortgagee insist on compulsory registration of the property in the mortgagee's name? The mortgage deed format was taken from TNReginet - but this format does not clearly include a clause about section 69 and 69-A wherein the mortgage can be undertaken without the intervention of the court.

Does not the mortgage deed registered at the Sub Registrar office already qualify for that clause?

Thanks...

Reply Follow

3 Replies

sridhar pasumarthy (ADVOCATE) 18 March 2015

you cannot get any relief without intervention of court. you cannot insist mortgagor to register property. The only remedy is to file a civil suit and realise your amount through court auction of the property. There is a laxity by which, you can participate in the court auction with the permission of court.

1 Like

viji (no) 18 March 2015

Thank you Mr. Sridhar. How long would the procedure take place before the court could order auction and what is the permissible rate of interest per month that can be charged on a mortgaged property?

viji (no) 18 March 2015

also the patta which was issued in 2008, mentions a clause that permission has to be taken before selling the property within 10 years. But the property is mortgaged - so would the court intervene to order auction or is the mortgage itself invalid? In such a case, can permission be sought by the mortgagee to get the property auctioned or whether only the mortgagor can ask for permission ?