• Latest News

    Tuesday, 31 March 2015

    Suit for Mortgage Money

    Introduction
    Transfer of Property act has provided some remedies for mortgagee when mortgage-money is not repaid to him. This Act has provided mortgagee right to foreclosure or sale. Even mortgagee has also been granted right to sue for mortgage-money under this Act.

    2. Mortgagee’s Right to sue for mortgage money
    According to Transfer of Property act, mortgagee possesses right to sue for mortgage-money.



    3. Grounds on basis of which Mortgagee has right to sue for mortgage-money

    Followings are grounds on basis of which mortgagee has right to sue for mortgagee-money;

    (i) Default in Payment
    Mortgagee has right to sue for mortgage-money when mortgagor binds himself to repay mortgage money but defaults.

    (ii) Destruction of Mortgaged-property
    Mortgagee has right to sue for mortgage-money when mortgaged property is wholly or partially destroyed. However, such destruction should not be caused wrongful act or default of mortgagor or mortgagee.

    (iii) Insufficient security
    Mortgagee has right to sue for mortgage-money when rendered security is insufficient, and mortgagee has given mortgagor a reasonable opportunity to provide further sufficient security, but mortgagor has failed to do so.

    (iv) Deprivation of Security
    Mortgagee has right to sue for mortgage-money when mortgagee is deprived of whole or part of his security by or in consequence of wrongful act or default of mortgagor.

    (v) Non-delivery of Possession
    Mortgagee has right to sue for mortgage-money when mortgagee is entitled to possession of mortgaged-property, but mortgagor fails to deliver the same to mortgagee.

    (vi) Securing of Possession
    Mortgagee has right to sue for mortgage-money when mortgagee is entitled to secure possession of mortgaged-property without disturbance by mortgagor or any person, who claims under a title, which is superior to that of mortgagor.

    Conclusion
    To conclude, it can be stated that mortgagee does not possess right to sue for mortgage-money against a transferee from mortgagor or from his legal representative when mortgagor binds himself to repay mortgage-money.




    • Blogger Comments
    • Facebook Comments

    1 comments:

    Item Reviewed: Suit for Mortgage Money Rating: 5 Reviewed By: Usman Ali
    Scroll to Top