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Section 76 - Liabilities of mortgagee in possession : Transfer of Property Act, 1882

 

 

What are the Liabilities of mortgagee in possession? Section 76 of Transfer of Property Act, 1882

Section 76 of Transfer of Property Act 1882 : "Liabilities of mortgagee in possession"

76. When, during the continuance of the mortgage, the mortgagee takes possession of the mortgaged property,-

(a) he must manage the property as a person of ordinary prudence would manage it if it were his own;

(b) he must use his best endeavours to collect the rents and profits thereof;

(c) he must, in the absence of a contract to the contrary, out of the income of the property, pay the Government revenue, all other charges of a public nature and all rent accruing due in respect thereof during such possession, and any arrears of rent in default of payment of which the property may be summarily sold;

(d) he must, in the absence of a contract to the contrary, make such necessary repairs of the property as he can pay for out of the rents and profits thereof after deducting from such rents and profits the payments mentioned in clause (c) and the interest on the principal money;

(e) he must not commit any act which is destructive or permanently injurious to the property;

(f) where he has insured the whole or any part of the property against loss or damage by fire, he must, in case of such loss or damage, apply any money which he actually receives under the policy, or so much thereof as may be necessary, in reinstating the property, or, if the mortgagor so directs, in reduction or discharge of the mortgage-money;

(g) he must keep clear, full and accurate accounts of all sums received and spent by him as mortgagee, and, at any time during the continuance of the mortgage, give the mortgagor, at his request and cost, true copies of such accounts and of the vouchers by which they are supported;

(h) his receipts from the mortgaged property, or, where such property is personally occupied by him, a fair occupation-rent in respect thereof shall, after deducting the expenses properly incurred for the management of the property and the collection of rents and profits and the other expenses mentioned in clauses (c) and (d), and interest thereon, be debited against him in reduction of the amount (if any) from time to time due to him on account of interest and, so far as such receipts exceed any interest due, in reduction or discharge of the mortgage-money; the surplus, if any, shall be paid to the mortgagor;

 

(i) when the mortgagor tenders, or deposits in manner hereinafter provided, the amount for the time being due on the mortgage, the mortgagee must, notwithstanding the provisions in the other clauses of this section, account for his receipts from the mortgaged property from the date of the tender or from the earliest time when he could take such amount out of Court, as the case may be and shall not be entitled to deduct any amount therefrom on account of any expenses incurred after such date or time in connection with the mortgaged property.

Loss occasioned by his default
If the mortgagee fails to perform any of the duties imposed upon him by this section, he may, when accounts are taken in pursuance of a decree made under this Chapter, be debited with the loss, if any, occasioned by such failure

 

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

Section 67 - Right to foreclosure or safe

Section 67A - Mortgagee when bound to bring one suit on several mortgages

Section 68 - Right to sue for mortgage-money

Section 69 - Power of sale when valid

Section 69A - Appointment of receiver

Section 70 - Accession to mortgaged property

Section 71 - Renewal of mortgaged lease

Section 72 - Rights of mortgagee in possession

Section 73 - Right to proceeds of revenue sale or compensation on acquisition

 

 

Section 74 - Right of subsequent mortgagee to pay off prior mortgagee

Section 75 - Rights of mesne mortgagee against and subsequent mortgagees

Section 76 - Liabilities of mortgagee in possession

Section 77 - Receipts in lieu of interest

Priority

Section 78 - Postponement of prior mortgagee

Section 79 - Mortgage to secure uncertain amount when maximum is expressed

Section 80 - Tacking abolished

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