Transfer of Property Act Section 59 — Mortgage when to be by assurance

Summary

If the loan amount is 100 rupees or more, a mortgage (other than one made by depositing title deeds) must be created through a written document that is registered, signed by the borrower, and witnessed by at least two people. If the loan amount is less than 100 rupees, the mortgage can be created either through such a registered and witnessed document, or—except for a simple mortgage—by physically handing over the property.

Official Text

Where the principal money secured is one hundred rupees or upwards, a mortgage 5[other than a mortgage by deposit of title-deeds] can be effected only by a registered instrument signed by the mortgagor and attested by at least two witnesses. Where the principal money secured is less than one hundred rupees, a mortgage may be effected either by 6[a registered instrument] signed and attested as aforesaid, or (except in the case of a simple mortgage) by delivery of the property. 7* * * * 8[

Referred to by

• Transfer of Property Act §1 — Short title

Related Judgments

• STATE OF HARYANA & OTHERS vs NAVIR SINGH AND ANOTHER — Supreme Court of India (2013)
• A.B. GOVARDHAN vs P. RAGOTHAMAN — Supreme Court of India (2024)
• TARA CHAND vs SAGARBAI @ CHAIYALIBAI — Supreme Court of India (2007)
• SAMPURAN SINGH AND ORS. vs NIRANJAN KAUR AND ORS — Supreme Court of India (1999)
• THE COSMOS CO. OPERATIVE BANK LTD. vs CENTRAL BANK OF INDIA & ORS — Supreme Court of India (2025)
• M. L. ABDUL JABHAR SAHIB vs H. V. VENKATA SASTRI & SONS & ORS — Supreme Court of India (1969)