âLaw Masterâsâ Publication
âSpecial Suitsâ
Prof. .S. D. Bhosale
132
D) SUIT FOR REDEMPTION-
A suit by the Mortgagor to get back mortgaged property from the Mortgagee on
repayment of mortgage money is called a suit for Redemption.
(i) Preliminary decree (R. 7)-
If the plaintiff succeeds in a suit for Redemption, the Court shall pass a preliminary
decree in the manner mentioned above.
In default by the plaintiff in payment of the amount ordered, within time, the
defendant is entitled to apply for a final decree that the mortgaged property be sold or that
the plaintiff be debarred of his right to redeem the mortgaged property, depending upon
the nature of the mortgage.
(ii) Final Decree-
Where before a final decree debarring the plaintiff from all the rights to redeem the
mortgaged property has been passed, or before the confirmation of the sale, if the plaintiff
pays all amounts due, the Court shall, on an application made by the plaintiff, pass a final
decree directing the defendant to deliver to the plaintiff, all the documents referred in the
preliminary decree to transfer the mortgaged property and to put the plaintiff in possession
thereof.
In default of payment by the plaintiff in a fixed period, the Court shall, on an
application of the defendant, pass a final decree directing that the mortgaged property be
sold and proceeds thereof be applied in payment of the amount found due to the defendant
and the balance, if any be paid to the plaintiff.
In addition, the Court can order payment of costs, mesne profits and interest in
mortgage suits (Rules 10, 10 A and 11).
Sale of property subject to prior mortgage (R. 12).
Where the sale of any property directed is subject to the prior mortgage, the Court
may, with the consent of the prior mortgage, direct that the property be sold free from the
same, giving to such prior mortgagee the same interest in the proceeding of the sale as he
had in the property sold.
Application of proceeds (R. 13)-
Application of sale proceeds be made in the following order-
a) first, in payment of all expenses incidental to the sale,
b) Secondly, in payment of the amount due to the prior mortgagee on account of the
mortgage.
c) thirdly, in payment of all interest due on account of the mortgage;
d) fourthly, in payment of the principal money due on account of a mortgage;
e) lastly, the residue (if any), shall be paid to the person entitled.