Section 84: Cessation of interest

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
Statutory Defined Terms in this Section: (Click any term for official legal definition)

Legal Commentary & Landmark Judgments: Section 84

Section 84 mandates the cessation of interest upon a valid deposit made under Section 83, providing that interest on the mortgage debt ceases to run from the date the mortgagee has notice of the deposit.

  • Cessation of Interest: When the mortgagor or such other person has tendered or deposited in court under Section 83 the amount remaining due on the mortgage, interest on the principal money shall cease from the date the mortgagee has notice of the deposit.
  • Condition of Availability: Deposit must remain unconditionally available for withdrawal by the mortgagee.
  • Mortgagee Default Consequence: If the mortgagee refuses to accept a valid deposit without lawful cause, he forfeits all claims to interest from the date of notice.
Key Landmark Precedents:
  • Prithi Nath Singh v. Suraj Ahir, AIR 1963 SC 1041: The Supreme Court affirmed that under Section 84, interest stops running automatically once the mortgagee receives notice of an unconditional deposit made under Section 83.
  • Seth Ganga Dhar v. Shankar Lal, AIR 1958 SC 770: Reaffirmed that lenders who reject valid statutory deposits do so at their own peril regarding ongoing interest.
Courtroom Practice & Strategic Litigation Guidance:

Ensure the process fee for serving Section 83 notice upon the mortgagee is paid immediately; interest officially freezes on the calendar date the bailiff serves the Section 84 notice.