Answer-When mortgaged property is leased & it is renewed:

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When mortgaged property is leased & it is renewed:

Question

When mortgaged property is leased & it is renewed:

A Mortgagor doesn’t get benefit of lease. Correct Answer Incorrect Answer

B Mortgagee gets benefit of lease only Correct Answer Incorrect Answer

C Mortgagor gets benefit of lease on redemption of property Correct Answer Incorrect Answer

D Lease gets terminated on redemption Correct Answer Incorrect Answer

E A property which is mortgaged cannot be leased. Correct Answer Incorrect Answer

Solution

As per s. 64 of the TP Act, 1882, S. 64. Renewal of mortgaged lease.—Where the mortgaged property is a lease and the mortgagee obtains a renewal of the lease, the mortgagor, upon redemption, shall, in the absence of a contract by him to the contrary, have the benefit of the new lease.

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