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Section 64: Renewal of mortgaged lease

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 1882
Section 63 All 137 Sections of Transfer of Property Act Section 65

Legal Commentary & Landmark Judgments: Section 64

Section 64 provides that where the mortgaged property is a lease and the mortgagee obtains a renewal of the lease, the mortgagor upon redemption is entitled to the benefit of the new lease.

  • Renewed Lease Benefit: 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 to the contrary, have the benefit of the new lease.
  • Constructive Trust Doctrine: Mortgagee in possession renewing a lease is treated as a constructive trustee for the mortgagor; he cannot usurp the renewal equity for personal benefit.
  • Reimbursement of Renewal Costs: Mortgagor upon redemption reimburses the actual renewal fine or statutory fees paid by the mortgagee.
Key Landmark Precedents:
  • Kuppuswami Mudaliar v. S.P. Subramaniam, (1969) 1 SCC 720: The Supreme Court affirmed that a mortgagee who utilizes his position as mortgagee in possession to obtain a renewal of leaseholds holds the renewed lease for the benefit of the mortgagor under Section 64.
  • Prithi Nath Singh v. Suraj Ahir, AIR 1963 SC 1041: Reaffirmed the fiduciary obligations of mortgagees in possession.
Courtroom Practice & Strategic Litigation Guidance:

If a mortgagee obtains a 99-year lease extension from the municipal corporation during the mortgage period, invoke Section 64 upon redemption to compel assignment of the renewed leasehold.

Section 63 All 137 Sections of Transfer of Property Act Section 65