Correct option is D
Under the Transfer of Property Act, 1882, Sections 60 and 67 discuss the Right of Redemption and the Right of Foreclosure respectively:
· Right of Redemption (Section 60 TPA): This right belongs to the mortgagor, not the mortgagee. It gives the mortgagor the right to reclaim their property after the debt is repaid. The Right of Redemption is protected and cannot be abrogated. According to the TPA, any condition or agreement that defeats the mortgagor’s right to redeem the mortgaged property is considered void. Hence, Option (c) is incorrect.
· Right of Foreclosure (Section 67 TPA): This right belongs to the mortgagee and allows the mortgagee to bar the mortgagor from redeeming the property upon default in repayment. However, this right can be abrogated by specific contractual terms or a court decree. Therefore, Option (d) is correct, as the right of foreclosure can be abrogated under certain circumstances.
Information Booster
· Section 60 emphasizes the Right of Redemption and protects it. This right allows the mortgagor to reclaim the mortgaged property by paying the principal amount, interest, and other due expenses. Courts have historically protected this right, ensuring that no clause or agreement can defeat it prematurely.
· Section 67 deals with the Right of Foreclosure or sale. The mortgagee may choose to initiate foreclosure if the mortgage is of a type that allows foreclosure (e.g., mortgages by conditional sale). However, this right can be waived or abrogated by the mortgage deed or legal agreement, limiting the mortgagee's ability to foreclose.
Additional Knowledge
· (a) The Right of Redemption belongs to the mortgagee: This is incorrect because the Right of Redemption belongs to the mortgagor. The mortgagee cannot redeem the property. Instead, the mortgagee holds the right to foreclose or sell the mortgaged property if the mortgagor fails to repay the loan.
· (b) The Right of Foreclosure belongs to the mortgagor: This is incorrect. The Right of Foreclosure belongs solely to the mortgagee, enabling them to bar the mortgagor from reclaiming the property if there is a default in the loan repayment.
· (c) The Right of Redemption can be abrogated: This is incorrect. The right of redemption is protected under Section 60, and any attempt to contractually eliminate or modify this right is void. Hence, it cannot be abrogated.
The correct interpretation of the law under the Transfer of Property Act is that the Right of Redemption is inalienable and the Right of Foreclosure can be abrogated.
