Section 57 - Provision by Court for incumbrances, and sale freed
therefrom : Transfer of Property Act, 1882
What is Provision by Court for incumbrances, and sale freed
Section 57 of Transfer of Property Act, 1882
Section 57 of Transfer of Property Act 1882 : "Provision by
Court for incumbrances, and sale freed therefrom"
57. (a) Where immovable property subject to any
incumbrance, whether immediately payable or not, is
sold by the court or in execution of a decree, or
out of Court, the court may, if it thinks fit, on
the application of any party to the sale, direct or
allow payment into Court,-
(1) in case of an annual or monthly sum charged on the
property, or of a capital sum charged on a determinable interest
in the property-of such amount as, when invested in securities
of the Central Government, the Court considers will be
sufficient, by means of the interest thereof, to keep down or
otherwise provide for that charge, and
(2) in any other case of a capital sum charged on the
property-of the amount sufficient to meet the incumbrance and
any interest due thereon.
But in either case there shall also be paid into Court such
additional amount as the Court considers will be sufficient to
meet the contingency of further costs, expenses and interest,
and any other contingency, except depreciation of investments,
not exceeding one-tenth part of the original amount to be paid
in, unless the Court for special reasons (which it shall record)
thinks fit to require a larger additional amount.
(b) Thereupon the Court may, if it thinks fit, and after
notice to the incumbrance, unless the Court, for reasons to be
recorded in writing, thinks fit to dispense with such notice,
declare the property to be freed from the incumbrance, and make
any order for conveyance, or vesting order, proper for giving
effect to the sale, and give directions for the retention and
investment of the money in Court.
(c) After notice served on the persons interested
in or entitled to the money or fund in Court, the
Court may direct payment or transfer thereof to the
persons entitled to receive or give a discharge for
the same, and generally may give directions
respecting the application or distribution of the
capital or income thereof.
(d) An appeal shall lie from any declaration, order or
direction under this section as if the same were a decree.
(e) In this section "Court" means (1) a High Court in the
exercise of its ordinary or extraordinary original civil
jurisdiction, (2) the Court of a District Judge within the local
limits of whose jurisdiction the property or any part thereof is
situate, (3) any other Court which the State Government may,
from time to time, by notification in the Official Gazette,
declare to be competent to exercise the jurisdiction conferred
by this section.