Ashish Gupta explains what this right means and how it operates
The Right of Redemption is an essential attribute of a mortgage. It is an inherent issue in itself. The mortgagors right to redemption is not merely a contractual right. It is a right given to him by the statute itself. The provisions concerned are contained under Section 60 of the Transfer of Property Act 1882. The property mortgaged is only a security for the payment of the money lent. The mortgagor is entitled to get his property back on payment of the principal and interest, after the expiry of the due date for the repayment of the mortgagees money. This right of the mortgagor is called the Right of Redemption.
Section 60 the Transfer of Property Act reserves this right. The right cannot be fettered by any condition which prevents redemption. The right cannot be controlled by any contract to the contrary. According to the provisions of Section 60, at any time after the principal money has become due, and upon payment, a mortgagor has these rights.
Obligations of a mortgagee
The mortgagee has to return the mortgage deed and all documents relating to the mortgaged property which are in his possession.
If the mortgagee is in possession of the mortgaged property, he has to hand over the possession He has to transfer the mortgaged property back to the mortgagor, at the cost of the mortgagor
He has to execute and register an acknowledgement that any rights in derogation of the interest transferred to him have been extinguished
The mortgagor can exercise the right before it is extinguished by the act of the parties or by the operation of law. The right can also be extinguished by a decree from a court. A mortgagor is not entitled to redemption before the mortgage money is due – before the time fixed for payment of the mortgage money. The rights are subject to the condition that the rights conferred have not been extinguished by acts of the parties or by a decree from a court.
A mortgage deed may provide that the time fixed for payment of the principal money should be allowed to pass or in case no such time has been fixed, the mortgagee should be entitled to reasonable notice before payment of the money.
It is to be noted that these statutory provisions will not apply to redemption of a portion of the mortgaged property. The provisions will not entitle a person interested in a part of the mortgaged property only to redeem just his own share, on payment of a proportionate part of the amount remaining due on the mortgage. The rights as conferred belong to and may be enforced by the mortgagor or by any encumbrancer.
Where a mortgagor is entitled to redemption, on completion of the requisite conditions which enable a retransfer, he may ask the mortgagee to either retransfer the property to him, or assign the mortgage debt and transfer the mortgaged property to a third person. In such a case, the mortgagee will be bound to assign and transfer accordingly.
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