Right of Foreclosure

The right of foreclosure is counter-part of right of redemption. Mortgagor gets a right of redeeming
his security after payment of debt amount; similarly mortgagee has a right of foreclosure or sale in
default of redemption by the mortgagor. Section 67 protects interest of a mortgagee who has
advanced a loan in pursuance of some interest in a security and mortgagor has defaulted in
payment.

Partial foreclosure is not a remedy under Section 67. The rule is that one of the several mortgagees
cannot foreclose or sell in respect of his share unless several mortgagees have, with consent of the
mortgagor, severed their interests under the mortgage. The reason of this rule is to protect the
mortgagor from being harassed by a multiplicity of suits where the severance of interest of the
mortgagees has taken place without the consent of the mortgagor. Accordingly all the co-
mortgagees must join together and file one suit in respect of the whole mortgage money.

The right to foreclosure can be exercised by mortgagee only when:



The debt amount has become due for payment.

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There are no contrary conditions in the mortgage deed as to the time fixed for repayment


etc.

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Mortgage money has become due but mortgagor has not got a decree of redemption of the
mortgaged property.


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Mortgage money has become due but mortgagor has not paid or deposited the amount.

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After the mortgage money has become due, the mortgagor can pay off his debt in three

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ways:


a
By tendering or making payment of the mortgage money directly to mortgagee

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1. By depositing the amount in court.

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2. By filing a suit for redemption.
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3. Mortgagee should be mortgagee of public works like canal, railway etc.
 A trustee or legal representative of mortgagee cannot file a suit for foreclosure but for sale
only.

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