Transfer of Property Act, 1882 / Chapter IV / Redemption

Section 91: Persons who may sue for redemption

Section 91 of the Transfer of Property Act, 1882 identifies the persons who may redeem a mortgage or institute a suit for redemption in addition to the mortgagor. It protects persons with a legally recognised stake in the mortgaged property or in discharging the mortgage debt.

Full text of Section 91 of the Transfer of Property Act, 1882

Meaning of redemption under the Transfer of Property Act

A mortgage under Section 58 is a transfer of an interest in specified immovable property to secure repayment of money or performance of an obligation of the kind specified in that section. The person creating the mortgage is the mortgagor and the secured creditor is the mortgagee. Mortgage-money means the principal money and interest of which payment is secured for the time being.

Redemption means discharging the mortgage obligation and asserting the rights arising on redemption, including the return of mortgage documents and, where applicable, possession and reconveyance or acknowledgement of extinguishment. Section 60 sets out the mortgagor's right to redeem, subject to its statutory requirements. Section 91 extends eligibility beyond the mortgagor; it does not itself eliminate the need to satisfy the mortgage debt or other applicable legal conditions.

Persons entitled to redeem or sue for redemption

Clause (a): Person with an interest or charge

A person holding an interest in, or charge on, the mortgaged property or the right of redemption may qualify. Depending on the facts, this may include a subsequent mortgagee, a purchaser of the equity of redemption or another holder of a legally recognised interest. The clause expressly excludes the mortgagee of the very interest sought to be redeemed. A stranger without an interest or charge does not acquire a right to redeem merely by volunteering payment.

Clause (b): Surety for the mortgage debt

A surety is a person who undertakes liability for another person's debt or obligation. A surety for all or part of the mortgage debt may redeem or sue for redemption under clause (b). The extent and consequences of payment also depend on the guarantee, relevant law and any rights of reimbursement or subrogation.

Clause (c): Creditor with an administration decree for sale

A creditor of the mortgagor qualifies under this clause only if the creditor has, in a suit for administration of the mortgagor's estate, obtained a decree for sale of the mortgaged property. An ordinary unsecured creditor does not fall within clause (c) merely because money is owed.

How Section 91 works in practice

Example 1: A mortgages land to B and later grants a second mortgage to C. As a subsequent mortgagee holding an interest in the security, C may be entitled to redeem B's earlier mortgage under clause (a), subject to the rights and obligations established by law.

Example 2: S guarantees repayment of a mortgage loan. S may redeem the mortgaged property under clause (b) because the statute expressly includes a surety for all or part of the mortgage debt.

Example 3: D is merely an unsecured creditor of A and has no administration decree for sale of the mortgaged property. D cannot rely on clause (c) on that fact alone.

A claimant should identify the mortgage deed, the debt due, the claimant's qualifying interest or status, the rights of other encumbrancers and any limitation or procedural issues. Section 83 permits specified persons entitled to institute a redemption suit to deposit the amount due in the appropriate court in the circumstances prescribed. The applicable procedure for a redemption suit is governed by civil procedure law, including Order XXXIV of the Code of Civil Procedure, 1908.

Relationship with Sections 60, 83 and 92

Section 60 governs the mortgagor's right to redeem. Section 83 concerns deposit in court of mortgage-money, and Section 84 addresses cessation of interest following a qualifying tender or deposit. Section 92 provides for subrogation in the circumstances stated there, where an eligible person redeems the mortgage. Eligibility to redeem and acquisition of the mortgagee's rights through subrogation are related but distinct questions.

Official legal resources

Read the Transfer of Property Act, 1882 (India Code), the India Code repository and the Legislative Department, Government of India. Check applicable amendments and case law before relying on the provision in litigation.