Enforcement of Mortgages through Court as per Transfer of Property Act, 1882

A mortgage is a security interest created over immovable property to secure the repayment of a loan. If the mortgagor fails to repay the loan, the mortgagee can enforce their security interest by selling the property.

The TPA sets out the following ways in which a mortgage can be enforced through the court:

  • Sale by public auction: The mortgagee can sell the property by public auction. The auction must be conducted in accordance with the TPA and the rules made by the state government.
  • Sale by private treaty: The mortgagee can sell the property by private treaty. This means that the mortgagee can sell the property to a willing buyer without having to go through an auction.
  • Appointment of a receiver: The mortgagee can apply to the court to appoint a receiver to manage the property. The receiver will be responsible for collecting the rent from the property and using the rent to repay the loan.
  • Foreclosure: The mortgagee can foreclose the mortgage. This means that the mortgagee can take ownership of the property and sell it to repay the loan.

MCQs on Enforcement of Mortgages through Court

Here are some MCQs on the topic of Enforcement of Mortgages through Court as per the TPA:

  1. Which of the following is a way to enforce a mortgage through the court?
    • Sale by public auction
    • Sale by private treaty
    • Appointment of a receiver
    • All of the above
  2. Who can sell the property by public auction?
    • The mortgagor
    • The mortgagee
    • The court
    • None of the above
  3. What are the requirements for a valid sale by public auction?
    • The sale must be conducted in accordance with the TPA and the rules made by the state government.
    • The sale must be advertised in a newspaper.
    • The sale must be open to all bidders.
    • All of the above
  4. What are the advantages of selling the property by private treaty?
    • The sale can be completed more quickly.
    • The sale can be completed at a higher price.
    • The sale can be completed without having to go through an auction.
    • All of the above

Answers to the MCQs:

  1. The answer is (d). All of the above. A mortgage can be enforced through the court by sale by public auction, sale by private treaty, or appointment of a receiver.
  2. The answer is (b). The mortgagee can sell the property by public auction. The mortgagor does not have the right to sell the property.
  3. The answer is (d). All of the above. The sale by public auction must be conducted in accordance with the TPA and the rules made by the state government, advertised in a newspaper, and open to all bidders.
  4. The answer is (d). All of the above. The sale by private treaty can be completed more quickly, at a higher price, and without having to go through an auction.