Mortgage Redemption - The Legal Chamber

Supreme Court Decides Long-Running Property Dispute on Mortgage Redemption

2Feb

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Supreme Court

Supreme Court Decides Long-Running Property Dispute on Mortgage Redemption

This Supreme Court judgement clarifies the limitation period for redeeming a usufructuary mortgage. The Supreme Court held that the right to redeem does not arise from the mortgage's creation date. Instead, the limitation period commences only when the mortgagor tenders the mortgage money, meaning the mortgagor's redemption right is not extinguished by mere lapse of time. Facts Of The Case: This case originated from a dispute over the redemption of a usufructuary mortgage concerning agricultural land in Punjab. The respondents' ancestors had mortgaged the property to the appellants' predecessors. In 1975, the Collector allowed the respondents' application for redemption under the Redemption of Mortgage Act, 1913. Challenging this, the appellants (original plaintiffs) filed a civil suit, ...

No Redemption After Auction Notice: Supreme Court Major Ruling on Bank Loan Recovery

This Supreme Court judgment clarifies that the right of redemption of a mortgagor under Section 13(8) of the SARFAESI Act is extinguished upon the publication of the notice of sale, as per the 2016 amendment. The Court held that this amended provision is retrospective in operation and overrides the general right of redemption under the Transfer of Property Act, 1882. The ruling emphasizes that only a single composite notice of sale is required under the SARFAESI Rules, irrespective of the mode of transfer adopted by the secured creditor. Facts Of The Case: The borrowers, M/s KPK Oils and Proteins India Pvt. Ltd. and its guarantors, availed credit facilities from the respondent Bank in January 2016, creating an equitable mortgage over various properties. After the loan account was classif...

Husband’s Income vs Wife’s Rights: Supreme Court’s Decision on Permanent Alimony”

The Supreme Court enhanced the appellant-wife's permanent alimony to ₹50,000 per month with a 5% increase every two years, modifying the High Court's order. The Court held the previous alimony inadequate given the respondent-husband's income and the appellant's need to maintain her standard of living. Financial support for the 26-year-old son was not mandated. Facts Of The Case: Rakhi Sadhukhan (appellant-wife) and Raja Sadhukhan (respondent-husband) were married on June 18, 1997, and had a son on August 5, 1998. In July 2008, the respondent-husband filed Matrimonial Suit No. 430 of 2008 seeking divorce on grounds of cruelty. The appellant-wife then filed Misc. Case No. 155 of 2008 for interim maintenance, and the Trial Court awarded her ₹8,000 per month and ₹10,000 for litigation expens...