Rule 7 of CPC : Rule 7: Preliminary decree in redemption suit.

Explanation using Example

Example 1:

Scenario: Ramesh had mortgaged his house to Suresh for a loan of ₹10,00,000. After a few years, Ramesh decides to repay the loan and redeem his house.

Court Proceedings:

1. Ramesh files a redemption suit in the court to reclaim his mortgaged house.
2. Court's Preliminary Decree:
   • The court orders an account to be taken of what is due to Suresh, including:
     • Principal amount of ₹10,00,000.
     • Interest on the mortgage, calculated to be ₹2,00,000.
     • Costs of the suit awarded to Suresh, ₹50,000.
     • Other costs and expenses incurred by Suresh, ₹20,000.
   • The court declares the total amount due to Suresh as ₹12,70,000.
   • The court directs Ramesh to pay ₹12,70,000 into the court within six months.
3. Outcome:
   • If Ramesh pays the amount within the stipulated time, Suresh must hand over all documents related to the mortgaged property to Ramesh and retransfer the property free from the mortgage.
   • If Ramesh fails to pay, Suresh can apply for a final decree to sell the mortgaged property.

Example 2:

Scenario: Priya had mortgaged her farmland to Anil for a loan of ₹5,00,000. Priya wants to redeem her farmland but is unable to pay the entire amount within the initially fixed period.

Court Proceedings:

1. Priya files a redemption suit in the court to reclaim her mortgaged farmland.
2. Court's Preliminary Decree:
   • The court orders an account to be taken of what is due to Anil, including:
     • Principal amount of ₹5,00,000.
     • Interest on the mortgage, calculated to be ₹1,00,000.
     • Costs of the suit awarded to Anil, ₹30,000.
     • Other costs and expenses incurred by Anil, ₹10,000.
   • The court declares the total amount due to Anil as ₹6,40,000.
   • The court directs Priya to pay ₹6,40,000 into the court within six months.
3. Extension of Time:
   • Priya shows good cause for her inability to pay within the fixed period and requests an extension.
   • The court, upon good cause shown, extends the time for payment by an additional three months.
4. Outcome:
   • If Priya pays the amount within the extended period, Anil must hand over all documents related to the mortgaged property to Priya and retransfer the property free from the mortgage.
   • If Priya fails to pay even within the extended period, Anil can apply for a final decree to sell the mortgaged property.