New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Mortgagee gets a right to sue for mortgage-money when?

    A Mortgagor binds himself to pay for it Correct Answer Incorrect Answer
    B Mortgagee is deprived of his security Correct Answer Incorrect Answer
    C In all mortgage debts Correct Answer Incorrect Answer
    D a and b Correct Answer Incorrect Answer

    Solution

    As per S. 68 of the Transfer of Property Act, 1882- S.68. Right to sue for mortgage-money.—( 1) The mortgagee has a right to sue for the mortgagemoney in the following cases and no others, namely:— (a) where the mortgagor binds himself to repay the same; (b) where, by any cause other than the wrongful act or default of the mortgagor or   mortgagee, the mortgaged property is wholly or partially destroyed or the security is rendered  insufficient within the meaning of section 66, and the mortgagee has given the mortgagor a  reasonable opportunity of providing further security enough to render the whole security  sufficient, and the mortgagor has failed to do so; (c) where the mortgagee is deprived of the whole or part of his security by or in consequence of the wrongful act or default of the mortgagor; (d) where, the mortgagee being entitled to possession of the mortgaged property, the mortgagor  fails to deliver the same to him, or to secure the possession thereof to him without disturbance by the mortgagor or any person claiming under a title superior to that of the mortgagor: Provided that, in the case referred to in clause (a), a transferee from the mortgagor or from  his legal representative shall not be liable to be sued for, the mortgage-money. (2) Where a suit is brought under clause (a) or clause (b) of sub-section (1), the Court may,  at its discretion, stay the suit and all proceedings therein, notwithstanding any contract to the  contrary, until the mortgagee has exhausted all his available remedies against the mortgaged  property or what remains of it, unless the mortgagee abandons his security and, if necessary,  re-transfers the mortgaged property.

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