AAP Tax Law legal information
Transfer of Property Act, 1882 | Chapter IV

Section 60: Right of Mortgagor to Redeem

Section 60 of the Transfer of Property Act, 1882, in Chapter IV (Mortgages of Immovable Property and Charges), establishes the right of redemption. A mortgage is a transfer of an interest in specified immovable property as security for a debt or other obligation, rather than an outright sale. Once the principal money has become due, the mortgagor may recover the property free of the mortgage by paying or properly tendering the mortgage-money, subject to the conditions stated in the Act.

Full text of Section 60 - Right of mortgagor to redeem

60. At any time after the principal money has become due, the mortgagor has a right, on payment or tender, at a proper time and place, of the mortgage-money, to require the mortgagee (a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee, (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and (where the mortgage has been effected by a registered instrument) to have registered an acknowledgement in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished:

Provided that the right conferred by this section has not been extinguished by act of the parties or by decree of a Court.

The right conferred by this section is called a right to redeem and a suit to enforce it is called a suit for redemption.

Nothing in this section shall be deemed to render invalid any provision to the effect that, if the time fixed for payment of the principal money has been allowed to pass or no such time has been fixed, the mortgagee shall be entitled to reasonable notice before payment or tender of such money.

Redemption of portion of mortgaged property

Nothing in this section shall entitle a person interested in a share only of the mortgaged property to redeem his own share only, on payment of a proportionate part of the amount remaining due on the mortgage, except only where a mortgagee, or, if there are more mortgagees than one, all such mortgagees, has or have acquired, in whole or in part, the share of a mortgagor.

Meaning and scope of the right to redeem

The right of redemption is the mortgagor's statutory right to discharge the security after the secured principal becomes due. Payment or tender must be of the mortgage-money due and made at a proper time and place. It is distinct from a mere contractual permission: the mortgagee cannot ordinarily insist on retaining the mortgaged interest once a valid redemption is completed.

What can the mortgagor demand on redemption?

  1. Return of documents: the mortgage-deed and documents of title relating to the property in the mortgagee's possession or power.
  2. Return of possession: if the mortgagee holds possession, it must be delivered back to the mortgagor.
  3. Release or re-transfer: at the mortgagor's expense, re-transfer to the mortgagor or a nominated third party, or a written acknowledgment extinguishing the mortgagee's interest, registered where the mortgage was effected by a registered instrument.

Conditions and limitations

1. When redemption is available

The right arises after the principal mortgage-money becomes due. An agreed reasonable-notice requirement may operate where the due date has passed or no due date was fixed. The right is subject to lawful extinguishment by an act of the parties or a court decree; mere default or expiry of the contractual repayment date does not, by itself, extinguish it.

2. Redemption normally covers the whole mortgage

A person owning only a fractional share of the mortgaged property cannot ordinarily redeem that share alone by paying a proportional part of the debt. The express statutory exception applies where the mortgagee (or every mortgagee where there are several) has acquired the share of a mortgagor in whole or in part. Separate mortgages and other special situations may also be governed by other provisions, including Section 61.

3. Court enforcement

If redemption is refused despite compliance with the legal requirements, the mortgagor may seek a decree in a suit for redemption. The procedural framework for mortgage suits appears in Order XXXIV of the Code of Civil Procedure, 1908; limitation and the applicable terms of the mortgage must also be considered.

Section 58 defines a mortgage and its forms; Section 59 addresses formalities; Section 59A extends references to persons deriving title; Section 60A permits a qualifying direction to transfer to a third party; and Section 60B deals with inspection and copies of title documents.

Official statutory sources

Read the Act and check any applicable amendments on the India Code official legislation portal. For procedural provisions consult the India Code database (Code of Civil Procedure, 1908, Order XXXIV). Local amendments and the facts of the mortgage may affect the result.