Section 62 of TPA : Section 62: Right Of Usufructuary Mortgagor To Recover Possession

Explanation using Example

Imagine Mr. Sharma owns a piece of land and needs money for his daughter's education. He decides to go for a usufructuary mortgage, giving the bank the right to enjoy the fruits (rents or profits) of the land until the loan is repaid. The bank and Mr. Sharma agree that the bank will use the rent from tenants on the land to pay off the loan.

Five years later, the rent collected has paid off the loan in full. Under Section 62 of the Transfer of Property Act, Mr. Sharma has the right to reclaim his land along with the mortgage deed and any related documents that the bank holds. The bank is obliged to return possession of the property to Mr. Sharma now that the mortgage money is fully paid.