INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR

RAJIV GANDHI SCHOOL OF INTELLECTUAL PROPERTY LAW

THIRD ASSESSMENT EXAMINATION 2021
SUBJECT CODE: IP 60109
SUBJECT NAME: LAW OF PROPERTY
MARKS 30
TIME: 2 HOURS

QUESTION PAPER RELEASE TIME: 9.55 A.M., DECEMBER 09, 2021

READ THE INSTRUCTIONS CAREFULLY

1. THE ANSWERS MUST BE SUBMITTED IN MS TEAMS ON OR BEFORE 12.05 P.M.,

DECEMBER 09, 2021.

2. IF THE ANSWER IS NOT RECEIVED WITHIN THE STIPULATED TIME FOR ANY
REASON WHATSOEVER IT WILL BE CONSIDERED THAT THE STUDENT IS
ABSENT IN THE EXAMINATION. HE/SHE WILL BE AWARDED ZERO MARKS FOR
THIS CREDIT ASSESSMENT.

3. DO NOT SEND YOUR ANSWER THROUGH EMAIL. THE SAME WILL NOT BE
ACCEPTED.

ANSWER ALL THE QUESTIONS

Question No. 1

Facts: On January 1, 2020 Amar contemplated to sell a house situated at Kharagpur (hereafter
referred to as the Property No. 1) to Sunita at a price Rs 30 Lac. On the same day Sunita gave to
Amar an advance of Rs 20 Lacs for the Property No. 1. It is to be noted that the said Kharagpur
house i.e. the Property No. 1 was owned by Amar’s close friend Jatin. Hence, by the very same
transaction of January 1, 2020, Amar professed to gift one of his own houses situated at Chennai
valued at Rs 45 Lacs (hereafter referred to as the Property No. 2) to Jatin. This was expressly in
lieu of Property No.1.

Jain did neither confirm or nor dissent from the proposed transfer until November 15, 2020. On
November 10, 2020, Amar due to dire need of money for his business expansion borrowed a sum
of Rs 30 Lacs from Dipen. On the same day i.e. November 10, 2020 Amar duly executed a simple
mortgage in respect of the Property No. 2 in favour of Dipen as security. The mortgage was
redeemable after November 25, 2021.

Coming to know about the aforesaid mortgage on November 15, 2020 Jatin informed Amar that
he was not interested in the contemplated transaction of January 1, 2020 and he had chosen to
retain the Property No. 1.
Question: Today is December 9, 2021. Till date Sunita did not get back her advance of Rs 20 Lacs
given to Amar. Can Sunita redeem the mortgage in respect of the Property No. 2? If so in what
capacity? What will be the consequence of such redemption by Sunita? Prepare a detailed note
explaining step by step the law in this regard. [Marks 10]

Question 2

What are the circumstances in which a mortgagee can file a money suit against the mortgagor?
[Marks 10]

Question 3

Explain the rules regarding the marshalling of mortgage securities by the subsequent mortgagees.
[Marks 5]

Question 4

What are the differences between Gifts under the Transfer of Property Act, 1882 and the Gifts in
Contemplation of Death under the Indian Succession Act, 1925? [Marks 5]