Ramesh and Shailesh entered into a deed of mortgage on 15 May 2024, for mortgaging a residential property situated in Mangalore. The loan amount is ₹ 50 lakh. The terms of the agreement inter-alia include that Ramesh by
CS Professional · Drafting, Pleadings and Appearances · PYQS · December 2024
Ramesh and Shailesh entered into a deed of mortgage on 15 May 2024, for mortgaging a residential property situated in Mangalore. The loan amount is ₹ 50 lakh. The terms of the agreement inter-alia include that Ramesh by the said agreement transfers this property to Shailesh on the following conditions: (i) If Ramesh repays the loan amount, the property should be re-transferred to Ramesh by Shailesh and (ii) If Ramesh makes default in repayment, the property is retained by Shailesh. Explain the nature of the above mortgage.
Answer & Explanation:
The above is in the nature of an English mortgage. Here, a mortgagor binds himself to repay the mortgaged money on certain date and transfers the mortgaged property absolutely to the mortgagee subject to the proviso that he will retransfer it to the mortgagor upon payment of the mortgaged money as agreed. The mortgage between Ramesh and Shailesh satisfies all the above requirements. Hence, it is an English mortgage.
Topics: Transfer of Property Act
Related Questions in this Topic
- Draft a specimen deed of Usufructuary Mortgage. Assume necessary facts, if required.
- Explain the Rights and Liabilities of Mortgagee.
- Write short notes on the following: Onerous Gift.
- In the light of Judicial pronouncement(s) discuss the following: Surrender of Lease is not a transfer.
- Explain the following: Main characteristics of the Equitable Mortgage.