No. 7C of CPC : No. 7C: PRELIMINARY DECREE FOR REDEMPTION WHERE ON DEFAULT OF PAYMENT BY MORTGAGOR A DECREE FOR SALE IS PASSED

Explanation using Example

Example 1:

Scenario: Rajesh, a farmer, took a loan of Rs. 5,00,000 from a local moneylender, Suresh, by mortgaging his farmland. Rajesh agreed to repay the loan within two years with interest. However, Rajesh failed to repay the loan within the stipulated time.

Court Proceedings:

1. Declaration of Amount Due: The court declares that Rajesh owes Suresh Rs. 5,00,000 as principal, Rs. 1,00,000 as interest, Rs. 10,000 for costs, charges, and expenses, and Rs. 20,000 for the cost of the suit, making a total of Rs. 6,30,000.
2. Order for Payment: The court orders Rajesh to pay Rs. 6,30,000 into the court by a specified date.
3. Redemption: If Rajesh pays the amount by the specified date, Suresh must return all documents related to the mortgaged farmland to Rajesh and re-convey the property free from the mortgage.
4. Default of Payment: If Rajesh fails to pay the amount by the specified date, Suresh can apply for a final decree for the sale of the farmland.
5. Sale of Property: The court orders the sale of the ...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.