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Section 62: Right of usufructuary mortgagor to recover possession

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Section 61 All 137 Sections of Transfer of Property Act Section 63
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Mortgage Sec 58

Legal Commentary & Landmark Judgments: Section 62

Section 62 confers a statutory right upon a usufructuary mortgagor to recover possession of the mortgaged property together with the title deeds once the mortgage debt is satisfied from rents and profits or repaid.

  • Recovery of Possession: In the case of a usufructuary mortgage, the mortgagor has a right to recover possession of the property together with the mortgage-deed and all documents.
  • Satisfaction from Rents and Profits [Sec 62(a)]: Where the mortgagee is authorized to pay himself the mortgage-money from the rents and profits of the property—when such money is fully paid off.
  • Satisfaction by Tender [Sec 62(b)]: Where the mortgagee is authorized to pay himself interest from rents and profits—when the term has expired and the mortgagor pays or tenders the balance principal.
  • Self-Liquidating Mortgage Standard: Affirms the self-exhausting character of traditional Indian usufructuary mortgages.
Key Landmark Precedents:
  • Singh Ram v. Sheo Ram, (2014) 9 SCC 185: The Full Bench of the Supreme Court authoritatively settled that in a usufructuary mortgage where rents and profits are set off against interest and principal, limitation for recovery of possession under Section 62 does not begin to run until the mortgage debt is fully satisfied; the right to recover possession is a continuing statutory entitlement.
  • Prithi Nath Singh v. Suraj Ahir, AIR 1963 SC 1041: The Supreme Court held that once the mortgage debt is discharged from usufruct, the usufructuary mortgagee's right to possession extinguishes automatically.
Courtroom Practice & Strategic Litigation Guidance:

In usufructuary mortgages, file a suit for recovery of possession and accounts under Section 62 demonstrating that the cumulative rental yields over the mortgage tenure have fully extinguished the original debt.

Section 61 All 137 Sections of Transfer of Property Act Section 63