Answer: According to Section 58(a) of Transfer of Property Act, 1882, a mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. The transfer is called mortgagor, the transferee a mortgage, the principal money and interest of which payment is secured for the time being are called the mortgage-money, and the instrument (if any) by which the transfer is effected is called a mortgage-deed.

Answer: According to Section 58 of Transfer of Property Act, 1882, there are six kinds of mortgages, namely, simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, mortgage by deposit of title deeds, and anomalous mortgage. Rashbihary Ghosh in his treatise -Law of Mortgage – has observed that the classification of mortgages in sec. 58 is not exhaustive. While mortgages are almost endless in form, the section describes the most common forms of mortgage in the country. Whenever any specific property is made answerable for the repayment of a debt or the performance of any other engagement which may give rise to a pecuniary liability, a mortgage is created in favour of the obligee which, unless it falls under any of the other classes mentioned in sec. 58, must be treated as an anomalous mortgage.

Answer : An agreement to execute a mortgage of immovable property does not in India by itself constitute a mortgage or a charge upon the property – Hukum Chand Versus Radha Kishen, reported in AIR 1930 Privy Council Page 76.

Answer: An agreement to execute a mortgage of immovable property cannot be generally specifically performed. However, where the mortgagee has advanced the money but the mortgagor refuses to execute a mortgage, the mortgagee can bring a suit for specific performance to compel the mortgagor to execute a deed of mortgage.

Answer : According to Section 58(b) of Transfer of Property Act, 1882, where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage- money, and agrees, expressly or impliedly, that in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, so far as may be necessary, in payment of the mortgage-money, the transaction is called a simple mortgage and the mortgagee a simply mortgage.

Answer : According to Section 58(c) of Transfer of Property Act, 1882, where the mortgagor ostensibly sells the mortgaged property 

on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute, or 

on condition that on such payment being made the sale shall become void, or on condition that on such payment being made the buyer shall transfer the property to the seller, 

the transaction is called a mortgage by conditional sale and the mortgagee a mortgagee by conditional sale

Provided that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect the sale.

Answer : According to Section 58(d) of Transfer of Property Act, 1882, when the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee, and authorizes him to retain such possession until payment of the mortgagee money, and to receive the rents and profits accruing from the property or any part of such rents and profits and to appropriate the same in lieu of interest, or in payment of the mortgage-money or partly in lieu of interest or partly in payment of the mortgage-money, the transaction is called an usufructuary mortgage and the mortgagee an usufructuary mortgagee.

Answer : According to Section 58(e) of Transfer of Property Act, 1882, where the mortgagor binds himself to repay the mortgage-money on certain date, and transfer the mortgage property absolutely to the mortgagee, but subject to a proviso that he will remain it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage.

Answer : According to Section 58(f) of Transfer of Property Act, 1882, where a person in any of the following towns, namely, the towns of Calcutta, Madras and Bombay, and in any other town which the State Government concerned may, by notification in the official ofd. gazette, specify in this behalf, delivers to a creditor or his agent documents of title to immovable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title deeds.

Answer : According to Section 58(g) of Transfer of Property Act, 1882, a mortgage which is not a single mortgagee, a mortgage by conditional sale, an usufructuary mortgage, an English mortgage by deposit of title deeds within the meaning of the section is called an anomalous mortgage.

 Answer : Section 60 of Transfer of Property Act, 1882 provides as follows :-

“ 60 Right of mortgagor to redeem.-At any time after the principal money has become due, the mortgagor has a right, on payment or tender, at a proper time and place, of the mortgage-money, to require the mortgagee 

(a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee

 (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and

 (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and where the mortgage has been effected by a registered instrument, to have registered an acknowledgement in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished:

Provided that the right conferred by this section has not been extinguished by act of the parties or by decree of a Court.

The right conferred by this section is called a right to redeem and a suit to enforce it is called a suit for redemption.

Nothing in this section shall be deemed to render invalid any provision to the effect that, if the time fixed for payment of the principal money has been allowed to pass or no such time has been fixed, the mortgagee shall be entitled to reasonable notice before payment or tender of such money.

Redemption of portion of mortgaged property.-Nothing in this section shall entitle a person interested in a share only of of the mortgaged property to redeem his own share only, on payment of a proportionate part of the amount remaining due on the mortgage, except [only] where a mortgagee, or, if there are more mortgagees than one, all such mortgagees, has or have acquired, in whole or in part, the share of a mortgagor.

Answer : According to Section 61 of Transfer of Property Act, 1882, a mortgagor who has executed two or more mortgages in favour of the same mortgagee shall, in the absence of a contract to the contrary, when the principal money of any two or more of the mortgages has become due, be entitled to redeem any one such mortgage separately, or any two or more of such mortgages together.

Answer : According to Section 63 of Transfer of Property Act, 1882, 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.

Answer : According to Section 70 of Transfer of Property Act, 1882, 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, shall, for the purposes of the security, be entitled to such accession.

Answer : According to Section 63A(1) of Transfer of Property Act, 1882, where mortgaged property in possession of the mortgagee has, during the continuance of the mortgage, been improved, the mortgagor, upon redemption, shall, in the absence of a contract to the contrary, be entitled to the improvement; and the mortgagor shall not, save only in cases provided for in sub-section (2), be liable to pay the cost thereof.

Answer : According to Section 65A(1) of Transfer of Property Act,1882, subject to the provisions of sub- section (2), a mortgagor, while lawfully in possession of the mortgaged property, shall have power to make leases thereof which shall be binding on the mortgagee.

Section 65A(2) of Transfer of Property Act,1882 is also very relevant and is quoted below:- 

“(2) (a) Every such lease shall be such as would be made in the ordinary course of management of the property concerned, and in accordance with any local law, custom or usage,

(b) Every such lease shall reserve the best rent that can reasonably be obtained, and no premium shall be paid or promised and no rent shall be payable in advance,

(c) No such lease shall contain a covenant for renewal,

(d) Every such lease shall take effect from a date not later than six months from the date on which it is made,

(e) In the case of a lease of buildings, whether leased with or without the land on which they stand, the duration of the lease shall in no case exceed three years, and the lease shall contain a covenant for payment of the rent and a condition of re-entry on the rent not being paid with a time therein specified.”

Answer : According to Section 67 of Transfer of Property Act,1882, a suit to obtain a decree that a mortgagor shall be absolutely debarred of his right to redeem the mortgaged property is called a suit for foreclosure.

Answer : According to Section 67 of Transfer of Property Act,1882, a mortgagee, at anytime after the mortgage money has become due and before a decree has been made for redemption of the mortgage property or before the mortgage money has been paid or deposited in accordance with law, has a right to obtain a decree that the property be sold.

Answer: The word Hypothecation is not defined in Transfer of Property Act, 1882. However, the word hypothecation is defined in Section 2(1) (n) of Sarfaesi Act, 2002 as follows:

2(n) "hypothecation" means a charge in or upon any movable property, existing or future, created by a borrower in favour of a secured creditor without delivery of possession of the movable property to such creditor. as a security for financial assistance and includes floating charge and crystallization of such charge into fixed charge on movable property;

Answer : Pledge is a kind of bailment. According to Section 148 of Indian Contract Act, 1872, a bailment is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. Thus, the word Pledge has been defined in Section 172 of Indian Contract Act, 1872 as a bailment of goods as security for payment of a debt or performance of a promise. The common examples of Pledge are pledge of ornaments or pledge of shares as security for the loan.

Answer: The word Charge has been defined in Section 100 of Transfer of Property Act, 1882 as follows: 

“Where immovable property of one person is by act of parties or operation of law made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property; and all the provisions hereinbefore contain which apply to a simple mortgage shall, so far as may be, apply to such charge.

Nothing in this section applies to the charge of a trustee on the trust property for expenses properly incurred in the execution of his trust, and save as otherwise expressly provided by any law for the time being in force, no charge shall be enforced against any property in the hands of a person to whom such property has been transferred for consideration and without notice of the charge.”