Correct option is A
The remedy of
foreclosure is provided under
Section 67 of the Transfer of Property Act, 1882. It allows the mortgagee (lender) to bar the mortgagor (borrower) from redeeming the mortgaged property. This remedy is available only in specific types of mortgages, particularly a
mortgage by conditional sale, where the property is sold conditionally, and the mortgagor can redeem the property upon fulfilling certain conditions. If these conditions are not met, the mortgagee can foreclose, making the sale absolute.
Information Booster:
Foreclosure is unique to
mortgages by conditional sale, where the property is conditionally sold to the mortgagee. Upon default, the mortgagee can foreclose, extinguishing the mortgagor's right of redemption, thus completing the sale. Other types of mortgages, such as simple or usufructuary, do not have the foreclosure remedy.
Additional Information:
1.
Option (b): English Mortgage In an English mortgage, the mortgagor binds themselves to repay the loan by a fixed date, and on default, the mortgagee can sell the property. Foreclosure is not applicable here as the mortgagee's remedy is sale, not foreclosure.
2.
Option (c): Usufructuary Mortgage In a usufructuary mortgage, the mortgagee takes possession of the property and enjoys its income or rent instead of foreclosure. The mortgagor retains the right to redeem by paying the loan.
3.
Option (d): Simple Mortgage In a simple mortgage, the property is not transferred to the mortgagee, and the mortgagee’s remedy lies in a Court-ordered sale of the property, not foreclosure.
