Mortgages Of Immovable Property And Charges MCQ Quiz in తెలుగు - Objective Question with Answer for Mortgages Of Immovable Property And Charges - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

The correct answer is Anomalous mortgage

 Key Points

• No Standard Form Matches: This mortgage does not fit neatly into any of the standard categories like simple, usufructuary, conditional sale, or English mortgage.
• Hybrid Features: The arrangement includes a usufructuary element (B takes income from the property for 10 years), and later redemption by payment of the remaining balance—a feature of simple or English mortgage.
• Defined by Section 58(g): Section 58(g) defines an anomalous mortgage as a mortgage that is not a simple mortgage, mortgage by conditional sale, usufructuary mortgage, or English mortgage, but a combination or modification of them.
• Key Reason: Since this mortgage involves both usufructuary elements (benefit from property) and redemption obligations (paying balance), it's an anomalous mortgage.

Additional Information

• Option 1) Mortgage by Conditional Sale – Incorrect: There is no condition to sell if the debt isn't repaid. It’s not a conditional sale.
• Option 3) Simple Mortgage – Incorrect: In a simple mortgage, the mortgagor personally binds himself to repay, and possession is not delivered.
• Option 4) English Mortgage – Incorrect: In an English mortgage, the property is absolutely transferred to the mortgagee, subject to a condition to re-transfer upon repayment. That is not the case here.

The correct answer is There must be promise to transfer of interest.

Key Points

• “A mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.”
• Actual Transfer of Interest is Mandatory
  • As per Section 58(a), a mortgage requires an actual transfer of an interest in specific immovable property. A mere promise to transfer is insufficient.
• The Property Must Be Specific and Immovable: The interest must relate to clearly defined immovable property.
• Purpose of Transfer: The transfer must be for securing a loan, an existing or future debt, or a pecuniary obligation.
• Defined Parties: The transferor is the mortgagor, and the transferee is the mortgagee.
• Transfer of Interest Does Not Mean Ownership Transfer: Only an interest is transferred, not ownership of the property.

Additional Information

• "There must be a transfer of interest.": Correct as per Section 58(a).
• "The interest must be of some specific immovable property.": Correct and essential.
• "The purpose must be to secure the payment of a debt.": Correct and essential.

The correct answer is Equitable Mortgage

Key Points

• Defined under: Section 58(f) of the Transfer of Property Act, 1882
• What happens?
  • The borrower deposits the title deeds (ownership documents) of the property with the lender as security for a loan, without executing a formal mortgage deed.
• Where valid?
  • Only in notified towns like Mumbai, Chennai, Kolkata, Delhi, and others as notified by the State Government.
• Why “equitable”?
  • Because it originated in equity courts in England; based on fairness, not strict legal formalities.

Additional Information

• Option 1) Anomalous Mortgage: A combination of two or more types of mortgages (not simply deposit of title deeds).
• Option 2) English Mortgage: Involves transferring ownership absolutely with a condition of retransfer on repayment.
• Option 4) Usufructuary Mortgage: Gives the lender possession and the right to enjoy rents and profits instead of interest or repayment.

The correct answer is Option 1

Key Points

• A mortgage is called an English mortgage where:
  • The mortgagor binds himself personally to repay the mortgage money on a certain date, and
  • Transfers the property absolutely to the mortgagee,
  • With a condition that the mortgagee will re-transfer the property to the mortgagor upon payment of the mortgage money.
• Key Features of an English Mortgage:
  • Absolute transfer of property to the mortgagee (in law, though not in intent).
  • Mortgagor gives a personal covenant to repay.
  • Property is re-transferred to the mortgagor upon full repayment.
  • Usually requires registration.
  • Commonly used in England, hence the name.

The correct answer is 12 years

Key Points

• When a mortgage deed is compulsorily registrable (as per the Registration Act, 1908) but is not registered, the mortgage is not valid in law. However, if the mortgagee continues in possession of the mortgaged property for a long time adversely to the interest of the mortgagor, the mortgagee may acquire ownership rights by adverse possession under the Limitation Act, 1963.
• Unregistered mortgage deeds (where registration is compulsory) are inadmissible in evidence and do not create any legal mortgage.
• But if the mortgagee is put in possession and continues in possession openly, continuously, and hostilely for the statutory period, they may acquire ownership rights by adverse possession.
• If the mortgagee remains in continuous, uninterrupted, and hostile possession of the mortgaged property for 12 years, a valid title by adverse possession may arise in favor of the mortgagee even though the original mortgage was invalid due to lack of registration.

The correct answer is 9% PA

Key Points

• Under Section 63A(2) of the Transfer of Property Act, if a mortgagee in possession has made necessary improvements (to prevent destruction, deterioration, insufficient security, or as per lawful order), the mortgagor is liable to pay:
  • The proper cost of such improvements,
  • As an addition to the principal amount, and
  • With interest at the rate agreed for the principal,
  • Or, if no rate is fixed, then at 9% per annum.
• Section 63 deals with accession to mortgaged property, and although it talks about cost and interest, it does not prescribe a specific rate. 

The correct answer is

Key Points Section 58 of the Transfer of Property Act, 1882
Definition of Mortgage (Clause a)
A mortgage is the transfer of an interest in a specific immovable property as security for:

• A loan already given or to be given,
• An existing or future debt, or
• The performance of an obligation that may lead to financial liability.
• The person giving the mortgage is called the mortgagor.
• The person receiving the mortgage is called the mortgagee.
• The principal amount and interest secured by the mortgage is called mortgage-money.
• The document that formalizes the mortgage transaction is called a mortgage-deed.

Types of Mortgages Defined in Section 58
1. Simple Mortgage (Clause b)

• The mortgagor does not deliver possession of the property to the mortgagee.
• The mortgagor personally agrees to repay the mortgage-money.
• If the mortgagor fails to repay, the mortgagee has the right to sell the mortgaged property and recover the debt from the sale proceeds.

2. Mortgage by Conditional Sale (Clause c)

• The mortgagor sells the property to the mortgagee with conditions, such as:
• If the mortgagor fails to pay the debt, the sale becomes absolute.
• If the mortgagor pays the debt, the sale becomes void.
• If the mortgagor pays the debt, the buyer must return the property to the seller.

Important:

• A mortgage by conditional sale must be written in the same document as the sale deed; otherwise, it will not be considered a mortgage.

3. Usufructuary Mortgage (Clause d)

• The mortgagor gives possession of the property to the mortgagee.
• The mortgagee receives rent or profits from the property instead of interest or loan repayment.
• The mortgagee retains possession until the mortgage-money is fully paid.

4. English Mortgage (Clause e)

• The mortgagor promises to repay the mortgage-money on a specific date.
• The mortgaged property is transferred absolutely to the mortgagee.
• However, the mortgagee must return the property to the mortgagor once the mortgage-money is repaid.

5. Mortgage by Deposit of Title-Deeds (Clause f)

• This is also called Equitable Mortgage.
• The mortgagor delivers the title deeds (ownership documents) of the property to the mortgagee.
• This creates a security interest over the property.
• This type of mortgage is valid only in certain cities specified by the State Government through a notification.

6. Anomalous Mortgage (Clause g)

• Any mortgage that does not fit into the above five categories is called an anomalous mortgage.
• This means it could be a combination of different types of mortgages or have special conditions agreed upon by the parties.

The correct answer is Equitable mortgage

Key Points

• A mortgage by deposit of title deeds is commonly known as an Equitable Mortgage and is governed by Section 58(f) of the Transfer of Property Act, 1882.
• In an equitable mortgage, the mortgagor deposits the title deeds (ownership documents) of immovable property with the mortgagee.
• This is done with the intent to create security for a loan or debt.
• No formal registered deed is required for this mortgage, making it simpler and cost-effective.

The correct answer is 'Mortgage is always redeemable.'

Key Points

• Mortgage is always redeemable:
  • The principle "Once a mortgage, always a mortgage" signifies that a mortgage, once created, retains its nature and essence as a mortgage until it is fully redeemed.
  • This means that the mortgagor (borrower) has the inherent right to redeem the mortgage at any time by repaying the loan amount along with any due interest, even if the stipulated time period for repayment has lapsed.
  • This principle ensures that the borrower’s right to reclaim their property is protected, reflecting the equitable nature of mortgage law.

Additional Information

• Mortgagee has no right to assign the mortgage debt to any other person:
  • This is incorrect because mortgagees (lenders) typically have the right to assign the mortgage debt to another party, transferring their rights and interests.
• Mortgage cannot be redeemed after the expiry of fixed period:
  • This contradicts the principle of mortgage redemption, which allows the borrower to repay and reclaim the property even after the fixed period has expired.
• Mortgagor has no right to assign right of redemption to any person:
  • This is incorrect as the mortgagor (borrower) can transfer their right of redemption to another person, allowing them to repay the mortgage and reclaim the property.

The correct answer is 'Is bound to assign and transfer accordingly.'

Key Points

• Section 60A of the Transfer of Property Act:
  • This section deals with the rights of a mortgagor to redeem the mortgaged property.
  • It allows the mortgagor to require the mortgagee to assign the mortgage debt and transfer the mortgaged property to a third person as directed by the mortgagor, rather than re-transferring the property back to the mortgagor himself.
  • This provision ensures that the mortgagor has the flexibility to direct the transfer to another party if needed.

Additional Information

• Incorrect Options:
  • Option 1: Is not bound to assign and transfer accordingly: This option is incorrect because Section 60A clearly states that the mortgagor has the right to require the mortgagee to assign and transfer to a third person.
  • Option 3: Is bound if the mortgagor assents: This option is incorrect because the provision does not require the assent of the mortgagor for the mortgagee to be bound; the mortgagor’s direction is sufficient.
  • Option 4: None of the above: This option is incorrect because the correct answer is explicitly stated in the law, which mandates the mortgagee to comply with the mortgagor's direction.