commit b4eefbb7b191df01db1a4ed5185cee45040b01be Author: jordanu1058095 Date: Sun Aug 31 18:51:08 2025 +0800 Add Inherent Rights of a Mortgagee diff --git a/Inherent-Rights-of-a-Mortgagee.md b/Inherent-Rights-of-a-Mortgagee.md new file mode 100644 index 0000000..27f47e9 --- /dev/null +++ b/Inherent-Rights-of-a-Mortgagee.md @@ -0,0 +1,52 @@ +
Sunil Kumar & Ors. v. State of Haryana & Ors
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" There is an inherent right in the mortgagee to, on the failure of liquidation of the relevant installations by the debtor, hence, to subject the subject plot to sale through public auction."
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Justice Sureshwar Thakur and Justice Vikas Suri
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Source: Punjab & Haryana High Court
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Why in News?
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Recently, the bench of Justice Sureshwar Thakur and Justice Vikas Suri held that, the mortgagee has a right to sell the mortgage residential or commercial property in a public auction if the debtor stops working to pay the stated instalments.
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The Punjab & Haryana High Court observed this in the matter of Sunil Kumar & Ors. v. State of [Haryana](https://listin.my) & Ors.
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What was the Background of Sunil Kumar & Ors. v. State of Haryana & Ors. Case?
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The petitioners filed an instantaneous writ petition seeking a writ of mandamus directing respondents No. 3 and 4 to release a No Objection Certificate (NOC) and transfer Plot No. 1591-B, Sector 23-23A, Gurugram, to the petitioners in the records of participants No. 2 to 4. The petitioners likewise looked for a re-allotment letter validating the [sale performed](https://rentify.ng) by respondent No. 5 on behalf of the State Bank of India under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the Act). +Respondent No. 5, under the arrangements of the Act, offered residential or commercial property No. 1591-BP, Sector 23-23A, Gurugram, by means of public auction for Rs. 2,28,37,425/- towards the residential or commercial property cost and Rs. 1,72,575/- towards TDS. The petitioners were issued a letter of acceptance of the quote dated 06.02.2020. +After the payment was made, respondent No. 5 released a sale certificate in favor of the petitioners for the residential or commercial property, and ownership was handed over by the District Magistrate of Gurugram on 12th October 2021. +On 06th July 2020, respondent No. 5 asked for respondent No. 2 for the [issuance](https://csirealestateinternational.com) of the NOC for the transfer of the residential or commercial property in the records of the participants. On 14th August 2020, participant No. 2 issued a letter directing respondent No. 3 to instruct participant No. 5 to use for re-allotment in the name of the petitioners. +Respondent No. 5 subsequently requested participant No. 4 to complete the rules for upgrading the records in favor of the petitioners, however the participants have yet to resolve the petitioners' complaints, triggering them irreversible loss and injury, as they are not able to use the residential or commercial property. +Respondents competed that although they permitted the State Bank of India to produce a mortgage on the residential or commercial property, no particular permission was approved for the sale of the residential or commercial property through public auction, and for that reason, the sale is not legitimate without an NOC.
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What were the Court's Observations?
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The Court observed that the participants' contention, which argued that the sale of the residential or commercial property was flawed due to the fact that no No Objection Certificate (NOC) was released by the concerned authorities before the public auction, was meritless. +The Court concluded that as soon as the respondents permitted the creation of a mortgage on the subject plot, this consent implicitly [extended](https://marakicity.com) to the right of the loan provider to offer the residential or commercial property through a public auction in case of the borrower's default. +The Court stressed that the intrinsic right of the mortgagee to auction the residential or commercial property to recover the loan was not negated by the absence of a particular NOC for the sale, as the NOC for producing the mortgage was thought about adequate. +The Court noted that the [respondents](https://tillahouses.com) did not raise any other objections worrying the sale, such as allegations of illegality or collusion in the auction procedure. As such, the Court discovered that the objections raised regarding the absence of the NOC were unwarranted. +Based upon the above observations, the Court enabled the writ petition, directing respondents No. 3 and 4 to provide the NOC and move the residential or commercial property to the petitioners' name in the records of the worried authorities. Additionally, the Court ordered the issuance of the re-allotment letter confirming the sale by respondent No. 5 on behalf of the State Bank of India.
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What are the Rights of [Mortgagee](https://goldlarimobiliaria.com.br) under Transfer of Residential Or Commercial Property Act?
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Right to Foreclosure or Sale (Section 67): The mortgagee can foreclose (bar the mortgagor from redemption) or offer the residential or commercial property when the mortgage-money becomes due.
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The mortgagee can file a fit to recuperate the mortgage-money if: +The mortgagor personally consented to repay. +The mortgaged residential or commercial property is ruined without the mortgagee's fault. +The mortgagee loses security due to the mortgagor's [wrongful](https://syrianproperties.org) act. +In an easy mortgage, the mortgagor defaults on payment.
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In English mortgages and where clearly concurred in the mortgage deed, the mortgagee can sell the residential or commercial property without court intervention. +In other cases, court authorization is needed for sale.
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In a usufructuary mortgage, the mortgagee has the right to keep belongings and gather rents/profits till the mortgage is totally repaid.
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If any [enhancements](https://ubiroo.com) or additions are made to the mortgaged residential or commercial property, the mortgagee can treat them as part of the security.
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If the mortgaged residential or commercial property is rented, and the mortgagee restores the lease, it will be held as part of the mortgage security.
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The mortgagee can spend cash to avoid the residential or commercial property from damage or loss and recuperate the quantity from the mortgagor.
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If the residential or commercial property is insured and is damaged, the mortgagee is entitled to declare the insurance coverage money as security.
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What are the Rights of Mortgagor under Transfer of Residential Or [Commercial Property](https://jadranreality.com) Act?
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Right of Mortgagor to Redeem (Section 60): This provision provides that upon providing sensible notification relating to the defined time and area, the mortgagor has the privilege to redeem the mortgage by paying the impressive mortgage quantity and: Require the mortgagee to provide the mortgage-deed and the mortgaged residential or commercial property and documents in his ownership or under his power. +Recover the ownership of the mortgaged residential or [commercial property](https://abujaluxuryhomes.com) from the mortgagee. +To get the residential or commercial property re-transferred to him or a third individual at his own cost by the mortgagee at the mortgagor's desire or get an acknowledgement signed up by the mortgagee extinguishing his right over the residential or commercial property.
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According to this section, the mortgagor has the right to request the transfer of both the mortgage deed and the mortgaged residential or commercial property to a third celebration as per the mortgagor's preference. +If the mortgagor has actually satisfied his obligation by paying the mortgage quantity, it is obligatory for the mortgagee to adhere to this demand.
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The mortgagor, exercising their right to redemption, can, at their own expense, request to check and acquire copies or extracts of the documents referring to the mortgaged residential or commercial property and the mortgage deed held by the mortgagee, upon effectively compensating the expenses incurred by the mortgagee on their behalf, at any reasonable time.
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In the absence of a contractual agreement, when numerous mortgages are performed in favor of the same mortgagee, the mortgagor can redeem one or more of these mortgage deeds all at once or any one deed independently upon payment of the outstanding fees for the specific mortgage(s).
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Where the mortgagee is authorized to pay himself the mortgage-money from the rents and revenues of the residential or commercial property when such cash is paid. +Where the [mortgagee](https://roostaustin.com) is licensed to pay himself from such leas and profits or arty part thereof a part only of the mortgage-money, when the term (if any), recommended for the payment of the mortgage-money has expired and the mortgagor pays or tenders to the mortgagee the mortgage-money or the [balance](https://propertyguides.in) thereof or transfers it in Court as hereinafter supplied.
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The mortgagor is entitled to the mortgaged residential or commercial property accession upon redemption, if any, during the mortgage's continuation when in ownership of the mortgagee if a contract for the contrary does not exist. +The mortgagee has no right to claim the accession when redeemed by the mortgagor.
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If a residential or commercial property is mortgaged, and the mortgagee makes enhancements to the residential or commercial property while holding it as security, the mortgagor has a right to those improvements when they redeem the residential or commercial property. This privilege exists unless there is a specific [contract](https://cubicbricks.com) specifying otherwise. +If the mortgagee makes required improvements to preserve the residential or commercial property from damage or wear and tear, to keep the residential or commercial property's worth as security, or in compliance with a legal order from a government authority, the mortgagor is typically responsible for paying the cost of those improvements.
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If a or commercial property remains in the possession of the [mortgagee](https://strandchalet-kamperland.nl) and has a lease around, and the mortgagee restores the lease throughout the mortgage duration, the mortgagor can get the benefits of that lease renewal, unless there is a particular provision in the mortgage contract that specifies otherwise.
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That the interest which the mortgagor proclaims to transfer to the mortgagee subsists, and that the mortgagor has power to transfer the very same. +That the mortgagor will protect, or, if the mortgagee remain in ownership of the mortgaged residential or commercial property, allow him to defend, the mortgagor's title thereto. +That the mortgagor will, so long as the mortgagee is not in possession of the mortgaged residential or commercial property, pay all public charges accruing due in respect of the residential or commercial property.
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