When mortgagee can take possession of mortgaged property in case of default cs notes
Mortgage – ‘Mortgage’ is the transfer of an interest inspecific immovable property for the purpose of securing payment of moneyadvanced or to be advanced, by way of loan or an existing or future debt. Thetransferor is called a mortgagor, the transferee a mortgagee, the principalmoney and interest of which payment is secured are called as ‘mortgage money’and the instrument by which transfer is effected is called amortgage-deed. [section 58(a)]. Mortgage can be * simple mortgage *Mortgage by conditional sale * Usufructuary mortgage * English Mortgage * Mortgageby deposit of title deeds or * Anomalous mortgage.
When mortgagee can take possession of mortgaged property incase of default - Under provisions of section 69 of Transfer of Property Act,mortgagee can take possession of mortgaged property and sale the same withoutintervention of Court only in case of English mortgage, if there is default ofpayment of mortgage money. In addition, mortgagee can take possession ofmortgaged property where there is specific provision in mortgage deed and themortgaged property is situated in towns of Kolkata, Chennai or Mumbai. In othercases, possession of property can be taken only with intervention of Court.[English Mortgage is where mortgagor binds himself to repay the mortgaged moneyon a certain date, and transfers the mortgaged property absolutely to themortgagee, but subject to a proviso that he will re-transfer the property tothe mortgagor upon payment of the mortgage-money as agreed. - section 58(e) ofTransfer of Property Act].