Question

Which of the following is NOT an essential of a mortgage under the Transfer of Property Act, 1882:

• A. It is a transfer of an interest in specific immovable property.
• B. It is for the purpose of securing the payment of money advanced or to be advanced by way of loan.
• C. It is always in respect of an existing debt.
• D. It is in respect of an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.
• A. When the debtor deposits with the creditor the title-deeds of his property with an intent to create a security, the law implies a contract between the parties to create a mortgage, and no registered instrument is required under section 59 of the Transfer of Property Act, as in other forms of mortgage.
• B. When the debtor deposits with the creditor the title-deeds of his property with an intent to create a security, the implication of law (that there exists a contract between the parties to create a mortgage) is excluded, and a registered instrument is required under section 59 of the Transfer of Property Act.
• C. When the debtor deposits with the creditor the title-deeds of his property with an intent to create a security, the implication of law (that there exists a contract between the parties to create a mortgage) is excluded, and a registered instrument is required under section 58(f) of the Transfer of Property Act.
• D. When the debtor deposits with the creditor the title-deeds of his property with an intent to create a security, the implication of law (that there exists a contract between the parties to create a mortgage) is excluded, and a registered instrument is required under section 17(1)(c) of the Registration Act.
• A. A simple mortgage.
• B. A mortgage by conditional sale.
• C. A usufructuary mortgage.
• D. An English mortgage.
• A. 30 years.
• B. 12 years.
• C. 20 years.
• D. 3 years.
• A. The deposit and the document both form integral parts of the transaction and are essential ingredients in the creation of the mortgage.
• B. The deposit alone is not intended to create the charge and the document, which constitutes the bargain regarding the security, is also necessary and operates to create the charge in conjunction with the deposit.
• C. The implication of law (that there exists a contract between the parties to create a mortgage) is excluded by their express bargain, and the document becomes the sole evidence of its terms.
• D. The deposit and the documents do not form integral parts of the transaction and hence they are not essential ingredients in the creation of the mortgage.

Answer 1

The Correct Option is C

Step 1: Understanding the Question:
The question asks to identify which of the given options is not an essential element of a mortgage as defined under the Transfer of Property Act, 1882.
Step 2: Key Formula or Approach:
The definition and essentials of a mortgage are provided in Section 58(a) of the Transfer of Property Act, 1882.
Step 3: Detailed Explanation:
Section 58(a) defines a mortgage as "the transfer of an interest in specific immovable property for the purpose of securing the payment of 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."
Let's analyze the options based on this definition:

(A) This is a core essential of a mortgage.
(B) This is also a core essential, describing the purpose of the mortgage.
(D) This correctly states that a mortgage can secure an existing debt, a future debt, or the performance of an engagement leading to a pecuniary liability.
(C) This statement claims that a mortgage is "always" for an existing debt. This is incorrect, as the definition explicitly includes "future debt." Therefore, this is NOT an essential of a mortgage.
Step 4: Final Answer:
The statement that a mortgage is always in respect of an existing debt is incorrect because a mortgage can also be created to secure a future debt.

Answer 2

Step 1: Understanding the Question:
The question asks to identify the correct legal position regarding a mortgage by deposit of title-deeds as per the Transfer of Property Act.
Step 2: Detailed Explanation:
The provided passage from {State of Haryana v Narvir Singh} clearly explains the legal framework for this type of mortgage, also known as an equitable mortgage.

The passage states: "The essence of mortgage by deposit of title-deeds is handing over by a borrower to the creditor title-deeds of immovable property with the intention that those documents shall constitute security..."
It further clarifies the registration requirement by referencing Section 59: "...Section 59 of the Transfer of Property Act mandates that every mortgage other than a mortgage by deposit of title-deeds can be effected only by a registered instrument... no registered instrument is required under Section 59 thereof as in other classes of mortgage."
This means that the act of depositing title deeds with the intent to create security is sufficient to create the mortgage, and it is a specific exception to the general rule requiring a registered instrument. The law implies a contract of mortgage from this act. Option (A) perfectly encapsulates this legal position. The other options incorrectly state that a registered instrument is required or that the implication of law is excluded.
Step 3: Final Answer:
A mortgage by deposit of title-deeds is created by the act of depositing the deeds with intent to secure a debt, and unlike other mortgages, it does not require a registered instrument.

Answer 3

Step 1: Understanding the Question:
This is a direct question asking which type of mortgage's legal provisions are applied to a mortgage by deposit of title-deeds, according to Section 96 of the Transfer of Property Act.
Step 2: Key Formula or Approach:
The answer is found by directly referencing the text of Section 96 of the Transfer of Property Act, 1882.
Step 3: Detailed Explanation:
Section 96 of the Transfer of Property Act, 1882, is titled "Mortgage by deposit of title-deeds". The section states:
"The provisions hereinbefore contained which apply to a simple mortgage shall, so far as may be, apply to a mortgage by deposit of title-deeds."
This means that for matters like the rights and liabilities of the parties, the procedure for foreclosure or sale, etc., a mortgage by deposit of title-deeds is treated similarly to a simple mortgage. In a simple mortgage, the mortgagee has the right to cause the mortgaged property to be sold in the event of non-payment, which is the primary remedy available in a mortgage by deposit of title-deeds as well.
Step 4: Final Answer:
The provisions applicable to a simple mortgage also apply to a mortgage by deposit of title-deeds.

Answer 4

Step 1: Understanding the Question:
The question asks for the statutory time limit (period of limitation) for filing a lawsuit to recover money that is secured by a mortgage on immovable property.
Step 2: Key Formula or Approach:
The answer is found in the Schedule to the Limitation Act, 1963. Specifically, we need to refer to the article governing suits related to mortgages.
Step 3: Detailed Explanation:
Article 62 of the Schedule to the Limitation Act, 1963, provides the limitation period for such suits.


Description of suit: To enforce payment of money secured by a mortgage or otherwise charged upon immovable property.
Period of limitation: Twelve years.
Time from which period begins to run: When the money sued for becomes due.
The 30-year period mentioned in option (A) typically relates to a suit for foreclosure by a mortgagee (Article 63(a)) or for redemption of a mortgage by a mortgagor. The 3-year period is generally for simple money suits not based on a mortgage.
Step 4: Final Answer:
The period of limitation for a suit to enforce payment of money secured by a mortgage is 12 years.

Answer 5

Step 1: Understanding the Question:
The question sets up a specific scenario: a mortgage by deposit of title-deeds is followed by a written memorandum that contains the terms and conditions of the bargain. This memorandum, as per the passage and the question, requires registration. The question asks which statement is INCORRECT in this specific scenario.
Step 2: Detailed Explanation:
The passage distinguishes between a simple memorandum that merely records the deposit (which doesn't need registration) and a memorandum that contains the terms and conditions of the loan (which does need registration). The question deals with the second type. When the parties reduce their bargain to writing in a document that requires registration, that document becomes the constitutive instrument of the mortgage, not just an evidence of it.


(A), (B), and (C): These statements correctly describe the legal effect when the bargain is reduced to writing. The written document becomes an integral part of the transaction (A), the charge is created by both the deposit and the document (B), and this express written contract overrides the simple contract implied by law (C). The document becomes the primary evidence of the mortgage.
(D): This statement claims that the deposit and the document are NOT integral parts and NOT essential ingredients. This is the direct opposite of the legal position described in (A), (B), and (C). In the scenario where the memorandum contains the bargain and requires registration, it becomes an essential and integral part of creating the mortgage. Therefore, this statement is incorrect.
Step 3: Final Answer:
Since the memorandum contains the actual terms of the mortgage and requires registration, it is an essential ingredient. The proposition that it is not an essential ingredient is therefore incorrect.