Law of Property

MORTGAGE
An assignment on definition of mortgage and different types of mortgages

Submitted By Ruben George Rock

VI Semester BA. LLB (Hons) NUALS

ACKNOWLEDGEMENT

First and foremost, we wish to place on record our deep gratitude to Mrs. Veena., faculty, Property Law, for having given me the opportunity to work on the project. I also thank profusely the li rary staff for the useful cooperation, their enthusiasm and attentive response in helping me find the right research material and links to important sources. My gratitude also e!tends to all other sources of data and information. I specially wish to thank my friends whose timely support and relevant criti"ue gave this project its essential structure and completeness, for were it not for their assistance, this project would not have taken the form it has presently.

WHAT IS MORTGAGE ?

A mortgage is a trans er o interest in immo!ab"e #ro#erty as a security or a "oan. $%ene!er a #erson "ends money to anot%er %e may do so eit%er &it%out asking or any security' or %e may demand some security or t%e #ayment o money. I t%e "ender %ad not demanded or any security and t%e borro&er ai"s to #ay t%e same' %e &i"" %a!e a rig%t to sue or t%e money. But i t%e borro&er becomes inso"!ent' %e may "ose a"" o %is money. $%ere' %o&e!er' some security o ade(uate !a"ue %as been gi!en or t%e "oan' t%e "ender &i"" be #rotected i t%e borro&er becomes inso"!ent because t%e security is gi!en #recedence o!er t%e c"aims o ot%er creditors. )ortgage can be said as an agreement to gi!e u# an interest in somet%ing i you ai" to #er orm some duty. It is a "ega" document by &%ic% t%e o&ner (i.e.' t%e buyer) trans ers to t%e "ender an interest in immo!ab"e #ro#erty to secure t%e re#ayment o a debt' e!idenced by a mortgage note. *%e #arty &%o borro&s t%e money and gi!es t%e mortgage (t%e debtor) is t%e mortgagor+ t%e #arty &%o #ays t%e money and recei!es t%e mortgage (t%e "ender) is t%e mortgagee. Under ear"y ,ng"is% and U.S. "a&' t%e mortgage &as treated as a com#"ete trans er o tit"e rom t%e borro&er to t%e "ender. *%e "ender &as entit"ed not on"y to #ayments o interest on t%e debt but a"so to t%e rents and #ro its o t%e rea" estate. *%e &ord -mortgage. is o o"d /renc% origin &%ic% meant -dead #"edge.. It &as dead or t&o reasons' t%e #ro#erty &as or eit or -dead. to t%e borro&er i t%e "oan &ere not re#aid and t%e #"edge itse" &as dead i t%e "oan &as re#aid. *%e essentia" eature o a mortgage is t%at it is a con!eyance o "ega" (it is "ega" or e(uitab"e in ,ng"and) interest in #ro#erty' &it% a #ro!ision or redem#tion' i.e.' u#on re#ayment o "oan' t%e con!eyance s%a"" become !oid or t%e interest s%a"" be re0 con!eyed.

DEFINITION OF MORTGAGE AS PER TRANSFER OF PROPERTY ACT

*%e #ro!isions re"ating to mortgage and c%arges are contained in section 12 to 342 o t%e *rans er o 5ro#erty Act.

Section 58 o t%e Act states as o""o&s6

"Mortgage", "mortgagor", "mortgagee", "mortgage-money" and "mortgaged" defined.

(a) A mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. The transferor is called a mortgagor, the transferee a mortgagee; the principal money and interest of which payment is secured for the time being are called the mortgage-money, and the instrument (if any) by which the transfer is effected is called a mortgage-deed. (b) imple mortgage-!here, without delivering possession of the mortgaged property, the mortgagor

binds himself personally to pay the mortgage-money, and agrees, expressly or impliedly, that, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, so far as may be necessary, in payment of the mortgage-money, the transaction is called a simple mortgage and the mortgagee a simple mortgagee. (c) "ortgage by conditional sale-!here, the mortgagor ostensibly sells the mortgaged property- on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute, or #n condition that on such payment being made the sale shall become void, or #n condition that on such payment being made the buyer shall transfer the property to the seller, The transaction is called a mortgage by conditional sale and the mortgagee a mortgagee by conditional sale$ %&#'()*) that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect the sale+ (d) ,sufructuary mortgage-!here the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property or any part of such rents and profits and to appropriate the same in lieu of interest or in payment of the mortgage-money, or partly in lieu of interest or partly in payment of the mortgage-money, the transaction is called a usufructuary mortgage and the mortgagee a usufructuary mortgagee. (e) *nglish mortgage-!here the mortgagor binds himself to repay the mortgage-money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but sub-ect to a proviso that he will retransfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an *nglish mortgage.

(f) "ortgage by deposit of title-deeds-!here a person in any of the following towns, namely, the towns of .alcutta, "adras, and /ombay, and in any other town which the tate 0overnment concerned may, by notification in the #fficial 0a1ette, specify in this behalf, delivers to a creditor or his agent documents of title to immovable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title-deeds. (g) Anomalous mortgage-A mortgage which is not a simple mortgage, a mortgage by conditional sale, a usufructuary mortgage, an *nglish mortgage or a mortgage by deposit of title-deeds within the meaning of this section is called an anomalous mortgage.

ANALYSIS OF SECTION 58 OF THE ACT

7n ana"y8ing Section 12' t%e o""o&ing e"ements can be discerned6 3. )ortgage is a trans er o an interest in s#eci ic immo!ab"e #ro#erty. 9. It is or t%e #ur#ose o securing t%e #ayment o money (a) Ad!anced or to be ad!anced by &ay o "oan+ (b) An e:isting or uture debt+ or (c) *%e #er ormance o an engagement &%ic% may gi!e rise to a #ecuniary "iabi"ity. ;. *%e #erson &%o trans ers t%e #ro#erty is ca""ed mortgagor. <. *%e #erson to &%om #ro#erty is trans erred is t%e mortgagee. 1. *%e #rinci#a" money and t%e interest o &%ic% #ayment is secured are ca""ed t%e mortgage money. =. *%e instrument by &%ic% t%e trans er is e ected is ca""ed mortgage deed.

Tran !er o! an Intere t" A mortgage is created by trans erring an interest in s#eci ic immo!ab"e #ro#erty. In ot%er &ords' not &%o"e o t%e rig%ts o t%e mortgagor in t%e #ro#erty is con!eyed to t%e mortgagee' but on"y a e&. *%e (uantity and t%e nature o t%e trans er de#end u#on t%e

conditions "aid do&n in t%e mortgage. *%e mortgagor %o&e!er does not abandon o&ners%i# o!er t%e #ro#erty or t%e dominion o!er t%e #ro#erty' but %e may #art &it% t%e #ossession. *%e rig%ts &%ic% t%e mortgagee obtains are ne!ert%e"ess "ega" rig%ts' but are on"y accessory rig%ts intended to secure t%e #ayment o t%e "oan. 3 It is a rig%t in rem' i.e. a!ai"ab"e against t%e &%o"e &or"d e:ce#t t%e o&ner. $%et%er a mortgagor %as trans erred any interest o!er t%e #ro#erty to t%e trans eree is a (uestion o construction and intention. No #articu"ar orm o &ord is necessary to create a mortgage. In t%e case o >a&a%ar La" !.Indumati 9' it &as %e"d t%at no trans er o an interest in t%e #ro#erty took #"ace &%ere #ro#erty &as mere"y made "iab"e or t%e "oan. In t%e case o Anant% Iyer !. ).R. Iyer;' it &as %e"d t%at &%ere it is #ro!ided t%at t%e trans eree s%a"" %a!e rig%t to recei!e rent o t%e "and s#eci ied in t%e document or s%a"" %a!e t%e rig%t to #ossess t%e "and' in eit%er case+ t%ere is trans er o interest in s#eci ic immo!ab"e #ro#erty. *%ere must %o&e!er be an actua" trans er and not a mere agreement to trans er. It is urt%er necessary t%at t%e #ro#erty must be distinct"y s#eci ied. *%e ob?ect o trans er o s#eci ic immo!ab"e #ro#erty by mortgage must be or t%e #$r#o e o! ec$rin% t&e #a'(ent o! (one' a)*ance) or to +e a)*ance) +' t&e ,a' o! -oan. an e/i tin% or !$t$re )e+t. or t&e #er!or(ance o! o(e en%a%e(ent ,&ic& (a' %i*e ri e to #ec$niar' -ia+i-it' .

S$+0ect Matter o! Mort%a%e" )o!ab"e and !a"uab"e c%atte" can a"so orm t%e sub?ect matter o mortgage. Suc% a mortgage' e!en i not accom#anied by de"i!ery o #ossession' is sti"" o#erati!e e:ce#t against bona ide #urc%asers &it%out notice. < Under ,ng"is% @ommon La& and Bi""s o Sa"e Act mo!ab"es and c%atte"s can a"so orm t%e sub?ect matter o mortgage. But di icu"ty in its a##"ication and user %as "ed to its restriction on"y to immo!ab"e #ro#erty.

3 9

#hetti $aundan v. %undaram Pillai, &'()*+ , Mad. -.#... /', /* ,) 0ll ,1' ; ,) I# 2' &'3'*+ < 4nited 5ank of India v. 6he 7ew $lencol 6ea #o. Ltd, 0I. '3(2 #al '*8

MORTGAGE AND OTHER SIMILAR TRANSACTIONS

A #-e)%e consists o t%e "oan o money in return or t%e de"i!ery o #ossession o c%atte"s to t%e "ender. In #"edge' a"t%oug% t%e "ender %as certain #o&ers o sa"e' t%e genera" #ro#erty in t%e goods remains in t%e borro&er and t%e "ender %as #ossession. In a (ort%a%e' on t%e ot%er %and t%e entire "ega" tit"e in t%e #ro#erty #asses to t%e mortgagee conditiona""y' and i t%e #ro#erty is not redeemed at t%e sti#u"ated time' t%e tit"e becomes abso"ute. A c&ar%e is regarded' or most #ractica" #ur#oses' as a s#ecies o mortgage. But t%ere is an essentia" di erence bet&een t%e t&o. A mortgage is a con!eyance o #ro#erty sub?ect to a rig%t o redem#tion &%ereas a c%arge con!eys not%ing and mere"y gi!es t%e c%arge %o"der certain rig%ts o!er t%e #ro#erty concerned as security or t%e "oan. A mortgage can be en orced against a bona ide #urc%aser or !a"ue &it% or &it%out notice+ &%i"e a c%arge cannot be en orced. Un"ike mortgage no rig%t in rem is created by a c%arge. A c%arge is good on"y against trans erees &it% notice o t%e c%arge' &%i"e mortgage is good against subse(uent trans erees.1 A -ien is t%e rig%t to retain #ossession o anot%er.s #ro#erty unti" a debt is #aid. It is a mere #assi!e rig%t o retention' gi!ing no rig%t to se"" or ot%er&ise dea" &it% t%e #ro#erty and is e:tinguis%ed i t%e creditor #arts &it% #ossession to t%e debtor or %is agent. A mortgage con ers an interest o "ega" c%aracter in t%e mortgagee and it is not a"&ays necessary t%at t%e mortgagee s%ou"d %a!e #ossession o t%e #ro#erty. In a -ea e' #%ysica" #ossession o immo!ab"e #ro#erty is con!eyed or t%e use and occu#ation by t%e "essee. Here' #ro#erty is not trans erred by t%e &ay o security or t%e #ayment o money borro&ed. *%e ob?ect o mortgage is to create a security or re#ayment o "oan. In ).A Umma !. 5.5. Amma=' Su#reme @ourt obser!ed t%at test to determine &%et%er a transaction is a "ease or a mortgage is by c%ecking &%et%er t%e intention o t%e trans er is or en?oyment o t%e #ro#erty ("ease) or &%et%er it is intended to secure t%e re#ayment o "oan (mortgage).
1 =

DIFFERENT FORMS OF MORTGAGES

9.F.# v. 0sst Provident Fund #ommissioner : 0nother, '33*&,+ 9L; ,13 0I. '32' %# '32/

Bi erent orms o mortgages as "isted in t%e *rans er o #ro#erty Act are6 Sim#"e mortgage CSec 12 (b)D )ortgage by conditiona" sa"e CSec 12 (c)D Usu ractuary mortgage CSec 12 (d)D ,ng"is% mortgage CSec 12 (e)D )ortgage by de#osit o tit"e deeds CSec 12 ( )D Anoma"ous mortgage CSec 12 (g)D

SIMPLE MORTGAGE

A sim#"e mortgage %as t%e o""o&ing e"ements6 (a) 5ossession o t%e mortgaged #ro#erty is not de"i!ered by t%e mortgagor to t%e mortgagee+ (b) *%e mortgagor undertakes a #ersona" "iabi"ity to #ay t%e mortgage money+ and (c) *%e mortgagor agrees' e:#ress"y or im#"ied"y t%at in case o %is ai"ure to #ay t%e mortgage money t%e mortgagee s%a"" %a!e a rig%t to cause t%e mortgaged #ro#erty so"d and t%e money so obtained s%a"" be a##"ied' so ar as may be necessary' in #ayment o t%e mortgage money.

In e!ent o ai"ure to re#ay t%e mortgagee t%e mortgaged #ro#erty can be so"d. *%e #o&er o sa"e cannot be e:ercised by t%e mortgagee a"one. He can se"" t%e #ro#erty on"y t%roug% t%e inter!ention o court. E *%e mortgagee on obtaining an order rom court a""o&ing sa"e o #ro#erty' t%e #roceeds o t%e sa"e &i"" be a##"ied or #ayment o debt a"ong &it% interest and i any amount is "e t unused' it &i"" be returned to t%e mortgagor. *%e suit or reco!ery o money must be i"ed &it%in t%e "imitation #eriod o 39 yrs rom t%e date &%en t%e money sued or becomes due.2
E

9ishanlal v. $angaram &'3('+ '8 0ll <ahid=un=nissa v. $o ardhan &'311+ ,, 0ll */8

No #articu"ar orms o &ords are necessary to create a sim#"e mortgage. It is su icient' i t%e intention o t%e #arties to create a mortgage can be made out. In Goku"das !. Ari#aramF' it &as %e"d t%at t%e o""o&ing &ords su iced to create a sim#"e mortgage6 GI I ai" to #ay t%e money as sti#u"ated I and my %eirs s%a"" &it%out ob?ection cause t%e sett"ement o t%e said !i""age to be made &it% you.H

MORTGAGE 1Y CONDITIONAL SALE

Suc% a mortgage %as t%e o""o&ing e"ements6 3. *%e mortgagor ostensib"y se""s t%e mortgaged #ro#erty 9. He se""s t%e #ro#erty on t%e condition t%at ' (a) 7n #ayment o t%e mortgaged money t%e sa"e s%a"" become !oid' and t%e buyer s%a"" trans er t%e #ro#erty to t%e se""er on t%e date i:ed+ (b) 7n de au"t o #ayment o t%e mortgage money on t%e i:ed date' t%e sa"e become abso"ute ;. *%e conditions &%ic% e ect or #ur#ort to e ect t%e sa"e must be embodied in t%e document o trans er. Un"ike a sim#"e mortgage' t%e mortgagor doesnot take a #ersona" "iabi"ity to #ay "oan. 7n"y a date is i:ed or t%e #ayment o money and i by t%e i:ed date money is not returned t%e sa"e becomes abso"ute. *%e mortgagee doesnot ac(uire any #ersona" rig%t against t%e mortgagor. *%e remedy o mortgagee by conditiona" sa"e is to sue or orec"osure on"y. *%e mortgagee in #ossession o t%e mortgaged #ro#erty is bound to kee# #ro#er accounts' not to commit &aste' to debit t%e #ro its in disc%arge o %is debts under section E= o t%e Act. $%et%er a deed is a mortgage by conditiona" sa"e or is a sa"e &it% a condition o re#urc%ase' it &i"" be determined by t%e intention o t%e #arties. Bescri#tion in t%e document a"one is not su icient or t%is #ur#ose. *%e documents containing t%e terms
F

&'(2*+ '8 5eg L. P#

o trans er must be read as a &%o"e. Its nature cannot be determined by reading t%e document on"y #artia""y. 2S2FRACT2ARY MORTGAGE 3. 5ossession o t%e mortgaged #ro#erty is de"i!ered to t%e mortgagee. 9. *%e "atter is entit"ed to get and retain t%e rents and #ro its arising out o t%e mortgaged #ro#erty or t%e re#ayment o interest or #rinci#a" or bot%. No #ersona" "iabi"ity is incurred by t%e mortgagor. ;. *%e mortgagee does not %a!e t%e rig%t to bring t%e mortgaged #ro#erty to sa"e to reco!er t%e ba"ance o #rinci#a" or interest due. So "ong t%e debt remains unsatis ied+ t%e mortgagee is entit"ed to remain in #ossession o t%e #ro#erty. Hence t%ere is no a i:ed time #eriod or &%ic% t%e mortgage subsists. *%e a##ro#riation o rent or interest de#ends on t%e terms and conditions o t%e mortgage deed. *%e mortgagee is su##osed to maintain account on it. I t%e mortgagor ai"s to de"i!er #ossession o t%e #ro#erty to t%e mortgagee' t%e "atter can eit%er sue or #ossession or or t%e reco!ery o "oan ad!anced. In case t%e #ossession is trans erred' t%e on"y remedy a!ai"ab"e to t%e mortgagor is to retain t%e #ro#erty unti" t%e debt is satis ied.34 ,!en t%oug% #ossession is gi!en o t%e mortgaged #ro#erty to t%e mortgagee' it is (uite di erent rom a "ease as t%ere is no mortgage debt &%ic% is re#ayab"e &it% interest in t%e case o a "ease. *o get t%e bene it o t%e rig%t to en orce a sa"e o t%e mortgaged #ro#erty or re#ayment o t%e mortgaged debt &it% interest' t%e mortgagee can con!ert t%e mortgage into a Isim#"e mortgage.I

*%e main c%aracteristics o t%is mortgage are as o""o&s6

34

.amnarayan %ingh v. 0 indra 7ath &'3'2+ ** I0 (2

/or t%is #ur#ose' t%ere s%ou"d be a s#eci ic &ritten #ro!ision in t%e mortgage deed to enab"e t%e mortgagee to con!ert t%e usu ructuary mortgage into a sim#"e mortgage. 3$ri#e &%i -ea e6 t%is is a "ease or a "um# sum o money #aid in ad!ance. *%e di erences bet&een 8uri#es%gi "ease and usu ructuary "ease are as o""o&s6 3. *%e debtor0 creditor re"ation &%ic% e:ist in usu ructuary mortgage is absent in 8uri#es%gi "ease. 9. In usu ructuary mortgage' t%e mortgagee retains #ossession o t%e #ro#erty ti"" mortgage money is satis ied' in 8uri#es%gi "ease' t%e #ossession is retained or a i:e #eriod. Kana( K$4&i-5ana( tran action. a #ractice common"y in !ogue in Sout% India is a kind o "ease &%ic% resemb"es usu ructuary mortgage. ENGLISH MORTGAGE 3. *%e mortgagor takes a #ersona" "iabi"ity to re#ay t%e mortgage money+ 9. He #romises to re#ay t%e money on a certain date+ ;. He trans ers t%e mortgage #ro#erty abso"ute"y to t%e mortgagee+ and <. $%en %e #ays back t%e mortgaged money to t%e mortgagee' t%e mortgagee re0 trans ers t%e #ro#erty back to %im. Nature o t%e rig%ts o t%e mortgagor and t%e mortgagee in an ,ng"is% mortgage &as e:amined by t%e 5ri!y @ounci" in .am 9inker v. %atya #haran.33 In t%is case a "essee mortgaged %is "ease%o"d rig%ts. *%e (uestion &as &%et%er t%e "essor cou"d sue t%e mortgagee or rent. *%e determination o t%is (uestion de#ended on t%e act &%et%er due to #ri!ity o estate t%e mortgagee cou"d be "iab"e or t%e burdens o "ease. *%e "essor based %is contention on an ,ng"is% case $i""iams !. Bosan(ue 39 in &%ic% it %ad been %e"d t%at in a transaction "ike t%at a #ri!ity o estate &as created bet&een t%e "essor and t%e mortgagee. *%e 5ri!y @ounci" %e"d t%at t%e rig%t o a mortgagor in India is more t%an a mere contractua" rig%t and must be a "ega" rig%t in t%e #ro#erty itse" .
33

*%e e"ements o an ,ng"is% mortgage are6

&'383+ )) I0 /1 &'('3+ ' 5r. 5. ,8(

39

*%ere ore t%e mortgagor %as not #arted &it% t%e &%o"e o %is rig%ts and %ence t%e situation doesnot it in t%e rame&ork o Sec 12(e) because it dea"s &it% abso"ute trans er o t%e mortgage #ro#erty to t%e mortgagee. In India' &%en t%e mortgagor assigns %is "ease%o"d interest by &ay o ,ng"is% mortgage under Sec 12 o t%e Act' %e doesnot trans er an abso"ute interest &it%in t%e #rinci#"e estab"is%ed in ,ng"and and conse(uent"y t%e mortgagee is not "iab"e by t%e #ri!ity o estate to #ay rent to t%e "essor. In )o%d. Sanoo!ar A"i !. Asman A"i 3; a #ro#erty &as mortgaged and t%e contract &as embodied into t&o documents e:ecuted on t%e same day. By one document t%e #ro#erty &as abso"ute"y trans erred to t%e mortgagee and by t%e second an - ekrarnama> &as e:ecuted by t%e mortgagee to retrans er t%e suit #ro#erty. It &as %e"d t%at in an ,ng"is% mortgage t%e mortgagor binds %imse" to #ay t%e mortgage money on a certain date. Since t%is e"ement is missing' it &as not %e"d as an ,ng"is% mortgage. MORTGAGE 1Y DEPOSIT OF TITLE DEEDS

(3) *%is mortgage by de#osit o tit"e deeds is a!ai"ab"e on"y in t%e metro#o"itan cities o Ao"kata' )umbai' @%ennai and ot%er to&ns &%ic% t%e State Go!ernments concerned' by noti ication in t%eir o icia" ga8ette' s#eci y. (9) *%e mortgagor de"i!ers t%e origina" documents o tit"e o %is #ro#erty to t%e creditor or %is agent &it% t%e intention o creating a security on t%e same in a!our o t%e creditor. (;) *%is is a mortgage &%ic% is "arge"y resorted to' as t%e "ega" orma"ities are sim#"e and easy to #er orm. (<) In t%is mortgage' no #ossession is gi!en and t%ere is on"y a de#osit o origina" documents o tit"e. (1) Norma""y' t%e matters re"ating to t%e de#osits o tit"e deeds are co!ered by an agreement in &riting.

3;

AIR 3F2F Gau E3

In ,ng"is% "a& t%is kind o mortgage is ca""ed -e(uitab"e mortgage.. *%e most im#ortant as#ect o t%is orm o mortgage is t%e intention o t%e mortgagor t%at t%e tit"e deed de#osited &it% t%e mortgagee s%a"" o#erate as a security or #ayment o debt. I t%e intention is ot%er&ise' t%en t%e transaction is not a mortgage. In Imperial 5ank of India v. .ai $yaw,3< t%e 5ri!y @ounci" obser!ed t%at a"t%oug%' t%ere &as no orma" con!eyance' an e(uitab"e mortgage e ects a trans er o an interest in #ro#erty. $%ere origina" tit"e deed cannot be de#osited a registration co#y o t%e same may be de#osited to constitute t%e orm o mortgage.31 In India' e(uitab"e mortgage is not recognised by t%e *rans er o 5ro#erty Act. In .ashrothana Parishat v. %tate of 9arnataka, ') t%e e:#ression -e(uitab"e mortgage. and mortgage by de#osit o tit"e deeds %a!e been used as synonyms. *%e distinctions bet&een t%e t&o are6 (a) An e(uitab"e mortgage can be created by actua" de#osit o tit"e deeds' in &%ic% case' #aro"e e!idence is admissib"e to s%o& t%e meaning o t%e de#osit and t%e e:tend o t%e security created. (b) It is a memorandum in &riting #ur#orting to create a security or money ad!anced' i t%ere is no de#osit o tit"e deeds. (c) An e(uitab"e mortgage does not trans er interest in t%e #ro#erty but a mortgage by de#osit o tit"e deed does trans er an interest in t%e #ro#erty.

ANOMALO2S MORTGAGE A mortgage ot%er t%an any o t%e mortgages e:#"ained abo!e. Suc% a mortgage inc"udes a mortgage ormed by combination o t&o or more ty#es o mortgages as
3< 31

AIR 3F9; 5@ 933 @. Assiamma !. State Bank o )ysore' AIR 3FF4 Aer 31E 3= AIR 3FF9 Aant ;22

e:#"ained be ore. I t%e transaction amounts to mortgage t%e rig%ts and "iabi"ities o t%e #arties &i"" be go!erned by t%e s#eci ied terms o t%e deed. *%is does not e:c"ude t%e o#eration o ot%er re"e!ant #ro!isions o t%e Act in so ar as t%ey are not embodied in t%e deed. Customary Mortgages: *%ere are mortgages to &%ic% s#ecia" incidents are attac%ed by "oca" usage. /or e:am#"e' Otti and Kano( #re!a"ent in )a"abar area cannot be redeemed be ore t%e e:#iry o 39 years in t%e absence o a s#ecia" agreement to t%e country. *%e Aanom ac(uires t%e c%aracter o a mortgage and a "ease. *%e 7tti %o"der %as a rig%t o #re0 em#tion. A Per$art&an mortgage is redeemab"e or t%e market !a"ue o t%e "and at t%e time o redem#tion.3E A San (ort%a%e #re!a"ent in Gu?arat is a mortgage &it%out #ossession and %as #riority o!er a subse(uent mortgage &it% #ossession.

3E

S%ekari !. )anga"am (32E=) 3 mad 1E

1I1LIOGRAPHY *rans er o 5ro#erty Act J H. N. *i&ari Internet Sources $iki#edia Indiankanoon La&yersc"ubindia.com La&k%o?.org