Lent money upon mortgaging the property


I gave 20 lakhs rupees to a friend three years ago. The borrower mortgaged his property and registered the document in registration office. The document/agreement says he will return the money in three years by paying 1.5% per month interest and in case of failure I have right to recover the money from that property. Now, the agreed date is expired. So far, the borrower didn't pay any interest or original amount. Now, he is saying, since I don't have money lending license I can't take any action with that mortgage document. What are my options and how I can recover the money with 1.5% interest? Please advice.



as you say it is a transaction of Mortgage. The law says once a mortgage is always a Mortgage. so irrespective of whether you possess a money lending licence or not you always have the option of filing a suit for foreclosure of mortgage by issuing a notice to the Mortgagor. 




You may start legal collection proceedings against the mortgagor for the principal amount and the interest accrued immediately.


Kishor Mehta


Thank you so much.

practising Advocate

Suit be filed for enforcement /recovery of mortgage debt.

Advocate, Chennai

You have not mentioned where is the mortgage property situated. If the property is situated in Chennai, Mumbai, Kolkata or any other notified places in the Transfer of Property Act, you may bring the property for Public Auction and sell it and recover the dues instead of filing a Civil Suit for recovery. You may better consult a good civil lawyer and get his/her practical advice.

practising Advocate

Even if the property is situated in Mumbai, chennai or Kolkutta,the mortgage cannot be enforced without filing suit for enforcement of mortgage debt.

solve problems in criminal cases. lawproblems@gmail.com

Specific provision of T P ACT for this partiuclar matter sir.

Morever whether the money lender act will be attracted.




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