Where mortgaged property in possession of the mortgagee has, during the continuance of the mortgage, received any accession, the mortgagor, upon redemption, shall, in the absence of a contract to the contrary, be entitled as against the mortgagee to such accession.
Accession acquired in virtue of transferred ownership.—Where such accession has been acquired at the expense of the mortgagee, and is capable of separate possession or enjoyment without detriment to the principal property, the mortgagor desiring to have the accession must pay to the mortgagee the expense of acquiring it.
If such separate possession or enjoyment is not possible, the accession must be delivered with the property;
the mortgagor being liable, in the case of an acquisition necessary to preserve the property from destruction, forfeiture or sale, or made with his assent, to pay the proper cost thereof, as an addition to the principal money, with interest at the same rate as is payable on the principal, or, where no such rate is fixed, at the rate of nine per cent.
per annum.
Legal Commentary & Landmark Judgments: Section 63
Section 63 regulates accessions to mortgaged property during the subsistence of the mortgage, establishing that the mortgagor is entitled to natural accessions upon redemption, and providing rules for acquired accessions.
If a mortgagee in possession constructs unauthorized structures, assert Section 63 upon redemption to insist that the mortgagee either remove the additions at their own cost or deliver them without demanding inflated compensation.