Transfer of Property Act Section 83 — Power to deposit in Court money due on mortgage
CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES — Deposit in Court
General
Summary
Once the mortgage money is due, the person who took the loan (or anyone else who could file a suit to redeem the property) can deposit the remaining amount with the court where such a suit could be filed, as long as the right to redeem the property has not expired. The court must then notify the lender in writing about this deposit. The lender can ask the court for the money by filing a petition stating the amount due and agreeing to accept the deposit as full payment, and must also hand over the mortgage deed and any related documents to the court. If the lender is in possession of the property, the court will order the lender to give possession back to the borrower before paying out the deposited money, and the lender must also transfer the property back or formally acknowledge that the borrower's rights are restored.
Official Text
At any time after the principal money 4[payable in respect of any mortgage has become due] and before a suit for redemption of the mortgaged property is barred, the mortgagor, or any other person entitled to institute such suit, may deposit, in any Court in which he might have instituted such suit, to the account of the mortgagee, the amount remaining due on the mortgage. Right to money deposited by mortgagor.—The Court shall thereupon cause written notice of the deposit to be served on the mortgagee, and the mortgagee may, on presenting a petition (verified in manner prescribed by 5law for the verification of plaints) stating the amount then due on the mortgage, and his willingness to accept the money so deposited in full discharge of such amount, and-on depositing in the same Court the mortgage-deed 6[and all documents in his possession or power relating to the mortgaged property], apply for and receive the money, and the mortgage-deed, 7[and all such other documents], so deposited shall be delivered to the mortgagor or such other person as aforesaid. 7[Where the mortgagee is in possession of the mortgaged. property, the Court shall, before paying to him the amount so deposited, direct him to deliver possession thereof to the mortgagor and at the cost of the mortgagor either to re-transfer the mortgaged property to the mortgagor or to such third person as the mortgagor may direct or to execute and (where the mortgage has been effected by a registered instrument) have registered an acknowledgment in writing that any right in derogation of the mortgagor's interest transferred to the mortgagee has been extinguished.] 1. Subs. by Act 20 of 1929, s. 42, for s. 81. 2. Subs by s. 43, ibid., for the first paragraph. 3. Subs. by s. 43, ibid., for “second”. 4. Subs. by s. 44, ibid., for “has become payable”. 5. See the Code of Civil Procedure, 1908 (5 of 1908), Sch. I, Order VI, rule 15. 6. Subs. by Act 20 of 1929, s. 44, for “if then in his possession or power”. 7. Ins. by s. 44, ibid.