Section 57 of TPA : Section 57: Provision By Court For Incumbranccs, And Sale Freed Therefrom

Explanation using Example

Imagine a scenario where Mr. Sharma owns a piece of land that is subject to a mortgage. Mr. Sharma defaults on the mortgage payments, and the lender obtains a decree to sell the property to recover the outstanding debt. The property is auctioned by the Court, and Mrs. Gupta emerges as the highest bidder and purchases the property.

However, the property is still under the mortgage incumbrance. Mrs. Gupta, wanting a clear title, applies to the Court to direct the payment into Court of a sum sufficient to satisfy the mortgage. The Court agrees and calculates an amount that, when invested, will cover the annual mortgage charge. Additionally, the Court includes an extra 10% of the calculated amount to cover potential further costs and contingencies.

Once Mrs. Gupta pays this amount into Court, the Court issues a notice to the mortgagee (the lender) and, after considering any responses, declares the property free from the mortgage. The Court orders the conveyance of the property to Mrs. Gupta and gives directions for the retention and investment of the money paid into Court.

The mortgagee is then served notice and is directed to claim the money from the Court, thus providing Mrs. Gupta with a property free from incumbrances. If either party is dissatisfied with the Court's decision, they have the right to appeal.