Case Note & Summary
The dispute arose from a suit filed by the respondent-plaintiff for possession of land in Village Sansra, Punjab, claiming ownership after purchasing it from the original mortgagor. The appellants, who had taken a mortgage on the property, contended that the suit was premature as it was filed before the expiry of the 99-year mortgage period. The trial court decreed the suit, holding that the mortgage clause constituted a clog on the equity of redemption, which was illegal and void. The appellate court upheld this decision, stating that the plaintiff had the right to redeem the property prior to the mortgage period's expiration. The court referenced Section 60 of the Transfer of Property Act, which grants the mortgagor the right to redeem the property upon payment of the mortgage money. The court reiterated that any provision preventing redemption is void and emphasized the importance of equity in mortgage transactions. The appeal was dismissed as the findings of the lower courts were not deemed perverse or uncalled for, and the appellants were found to have taken advantage of the mortgagor's financial difficulties. No costs were awarded in the dismissal of the appeal.
Headnote
A) Property Law - Equity of Redemption - Clog on Equity - Transfer of Property Act, 1882, Section 60 - The clause in the mortgage deed providing for a 99-year mortgage was held to be a clog on the equity of redemption and thus void. The court emphasized that the right of redemption cannot be fettered by any condition that impedes it, affirming the statutory right of the mortgagor to redeem the property (Paras 1-6).
Issue of Consideration
Whether the clause in the mortgage deed constituted a clog on the equity of redemption and if the suit was premature under Section 60 of the Transfer of Property Act.
Final Decision
The Supreme Court dismissed the appeal, affirming the lower courts' findings that the mortgage clause was a clog on the equity of redemption and that the respondent had the right to redeem the property prior to the expiry of the mortgage period.
Law Points
- equity of redemption
- clog on equity
- statutory right of redemption
- Transfer of Property Act
- 1882
- mortgage deed validity
