Section 59A of Transfer of Property Act, 1882 - Persons Deriving Title from Mortgagors and Mortgagees

Section 59A of the Transfer of Property Act, 1882 explains that the references to a mortgagor and a mortgagee in Chapter IV ordinarily extend beyond the original parties. They also cover persons who subsequently derive title from those parties, unless the Act expressly provides otherwise.

Section 59A - Full statutory text

59A. References to mortgagors and mortgagees to include persons deriving title from them. Unless otherwise expressly provided, references in this Chapter to mortgagors and mortgagees shall be deemed to include references to persons deriving title from them respectively.

Meaning and scope of Section 59A

Section 59A is an interpretative provision in Chapter IV - Of Mortgages of Immovable Property and Charges. A mortgagor is the person who transfers an interest in specific immovable property as security for a debt or other pecuniary obligation. A mortgagee is the person in whose favour that interest is transferred. These expressions are defined in Section 58.

The phrase persons deriving title can include successors, heirs, assignees or transferees who lawfully acquire the relevant interest from a mortgagor or mortgagee. Whether a particular person qualifies depends on the nature and validity of the title acquired and the applicable statutory provisions.

How the provision operates

On the mortgagor's side: A person who acquires the mortgagor's interest may, subject to the law and the mortgage, be treated as a mortgagor for provisions of Chapter IV that are applicable to that interest.
On the mortgagee's side: A person who validly acquires the mortgagee's interest may similarly fall within references to a mortgagee.
Express exceptions prevail: The opening words "Unless otherwise expressly provided" mean that an express contrary provision in Chapter IV controls.
No automatic enlargement of title: Section 59A does not itself create a mortgage, transfer ownership, validate an invalid assignment or dispense with applicable registration and transfer requirements.

Illustration

A mortgages a house to B. A later transfers A's remaining interest in the property to C, subject to the mortgage. B subsequently validly assigns the mortgagee's interest to D. In applying relevant Chapter IV provisions, C may be treated as a person deriving title from the mortgagor, and D as a person deriving title from the mortgagee, subject to any express exception and the terms and validity of the transactions.

Section 59 addresses when a mortgage must be effected by a registered instrument, while Section 60 governs the right to redeem a mortgage. These provisions must be read on their own terms together with Section 59A. The applicability of any right or liability also depends on the mortgage and the surrounding facts.

Official statutory source

Refer to the Transfer of Property Act, 1882 (India Code, official text) for the Act and amendments. State amendments, where applicable, should also be checked.