Section 60 of TPA : Section 60: Right Of Mortgagor To Redeem

Explanation using Example

Example Scenario:

Imagine that John took a loan from ABC Bank and mortgaged his house as security for the loan. The loan was scheduled to be repaid by January 1, 2023. As per the terms of the mortgage, the house was to be returned to John upon full repayment of the loan.

On January 1, 2023, John pays the outstanding loan amount in full to ABC Bank. He now wishes to exercise his right to redeem the property. Under Section 60 of The Transfer of Property Act, 1882, John has the right to demand from ABC Bank:

1. The return of the mortgage deed and all related documents regarding his house.
2. If ABC Bank had taken possession of the house, the return of possession of the house to John.
3. The re-transfer of the mortgaged property back to John or to a third party that he nominates, or an acknowledgement that the bank's interest in the property has been extinguished, which should be registered if the original mortgage was a registered instrument.

John's right to reclaim his property from ABC Bank is intact because there has been no legal action or agreement between the parties that would extinguish this right. This is known as John's right to redeem, and if ABC Bank were to refuse to comply, John could file a suit for redemption to enforce his right.