Home  /  Transfer of Property Act  /  Section 70

Section 70: Accession to mortgaged property

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
Section 69 All 137 Sections of Transfer of Property Act Section 71

Legal Commentary & Landmark Judgments: Section 70

Section 70 establishes that if, after the date of a mortgage, any accession is made to the mortgaged property, the mortgagee, in the absence of a contract to the contrary, is entitled for the purposes of the security to such accession.

  • Mortgagee's Right to Accessions: If, after the date of a mortgage, any accession is made to the mortgaged property, the mortgagee is entitled for the purposes of the security to such accession.
  • Subsequent Buildings Covered: If a mortgagor mortgages vacant land and subsequently constructs a multi-storey building, the entire building automatically becomes part of the mortgage security.
  • Natural and Industrial Accretions: Applies to all accretions, fixtures, machinery permanently attached to earth, and contiguous land acquisitions.
Key Landmark Precedents:
  • Nainsukhdas Shivnarayan v. Goverdhandas Girdhardas, AIR 1948 Nag 110: The Court settled that under Section 70, any structure built by the mortgagor upon mortgaged land feeds the mortgage security, and cannot be sold separately to defeat the lender.
  • State of Haryana v. Narvir Singh, (2014) 1 SCC 105: Affirmed that accessions and accretions automatically adhere to the mortgaged security under Section 70.
Courtroom Practice & Strategic Litigation Guidance:

When enforcing a mortgage, confirm that all subsequent factory sheds, residential floors, and permanent fixtures erected by the borrower post-mortgage are included in the Section 70 auction proclamation.

Section 69 All 137 Sections of Transfer of Property Act Section 71