Section 63A - Improvements to mortgaged property : Transfer of Property Act, 1882

What is the rule regarding Improvements to mortgaged property? Section 63A of Transfer of Property Act, 1882

Section 63A of Transfer of Property Act 1882 : "Improvements to mortgaged property"

63A. (1) Where mortgaged property in possession of the mortgagee has, during the continuance of the mortgage, been improved, the mortgagor, upon redemption, shall, in the absence of a contract to the contrary, be entitled to the improvement; and the mortgagor shall not, save only in cases provided for in sub-section (2), be liable to pay the cost thereof.

(2) Where any such improvement was effected at the cost of the mortgagee and was necessary to preserve the property from destruction or deterioration or was necessary to prevent the security from becoming insufficient, or was made in compliance with the lawful order of any public servant of public authority, the mortgagor shall, in the absence of a contract to the contrary, be liable to pay the proper cost thereof as an addition to the principal money with interest at the same rate as is payable on the principal, or, where no such rate is fixed, at the rate of nine per cent per annum, and the profits, if any, accruing by reason of the improvement shall be credited to the mortgagor.

TRANSFER OF PROPERTY ACT 1882

Section 60A - Obligation to transfer to third party instead of re-transference to mortgagor

Section 60B - Right to inspection and production of documents

Section 61 - Right to redeem separately or simultaneously

Section 62 - Right of usufructuary mortgagor to recover possession

Section 63 - Accession to mortgaged property

Section 63A - Improvements to mortgaged property

Section 64 - Renewal of mortgaged lease

Section 65 - Implied contracts by mortgagor

Section 65A - Mortgagor's power to lease

Section 66 - Waste by mortgagor in possession

Rights and liabilities of Mortgagee