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.
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