Redemption of Mortgages (Punjab) Act, 1913

1.

1. (1) This Act may be called the Redemption of Mortgages (Punjab) Act, 1913.
2. (2) It extends to Haryana.
3. (3) It shall apply only to mortgages of land,
   • (a) in which, whatever the mortgage money, the land mortgaged, after excluding the area of any share in the common land of the village or of a sub-division of the village appertaining thereto and mortgaged therewith, does not exceed in area 50 acres; or
   • (b) in which, whatever the area, the principal money secured under the mortgage does not exceed 5,000 rupees:

Definitions 2. In this Act, unless there is something repugnant in the subject or context,

1. (1) the expression 'land' means land which is not occupied as the site of any building in a town or village and is occupied or let for agricultural purposes or purposes subservient to agriculture or for pasture, and includes,
   • (a) the sites of buildings and other structures on such land;
   • (b) a share in the profits of an estate or holding;
   • (c) any dues or any fixed percentage of the land revenue payable by an inferior land-owner to a superior land-owner;
   • (d) a right to receive rent;
   • (e) any right to water enjoyed by the owner or the occupier of land as such; and
   • (f) any right of occupancy;
2. (2) the expression 'Collector' shall mean the Collector of the district in which the mortgaged property or any part thereof is situated, and shall include an Assistant Collector of the 1st grade;
3. (3) 'prescribed' shall mean prescribed by rules made under this Act.

3. Subject to the provisions of this Act and the rules thereunder, the provisions of sections 79, 85, 86, 87, 89, 90, 91, 92 and 101 of the Punjab Tenancy Act, 1887, shall, so far as may be, apply to all proceedings of a Collector under this Act.

4. The mortgagor or other person entitled to institute a suit for redemption may, at any time after the principal money becomes payable and before a suit for redemption is barred, present a petition to the Collector applying for an order directing that his mortgage be redeemed, and where the mortgage is with possession that he be put in possession of the mortgaged property. The petition shall be duly verified in the manner prescribed by law for the verification of plaints, and shall state the sum which the petitioner declares to the best of his belief to be due under the mortgage. The petitioner shall at the same time deposit such sum with the Collector.

Mortgagee to be summoned 5. When the petition has been duly presented and the deposit has been made, the Collector shall issue to the mortgagee a summons to appear on a date to be therein specified.

Procedure when petitioner is absent and mortgagee present Where the mortgagee appears and the petitioner does not appear when the petition is called on for hearing, the Collector shall, unless he adjourns the proceedings, make an order that the petition be dismissed, unless the mortgagee admits the claim, in which case the Collector shall make an order,

1. (a) that the mortgage be redeemed ;
2. (b) that where the mortgage is with possession the mortgagor be put in possession of the mortgaged property as against the mortgagee ;
3. (c) that the mortgagee deposit with the Collector the mortgage-deed, if any, if then in his possession or power, and that it be delivered to the petitioner ;
4. (d) that subject to the mortgage-deed, if any, being so deposited by the mortgagee the sum in deposit be paid to him :

Procedure when petitioner is present and mortgagee absent When the petitioner appears, but the mortgagee does not appear, when the petition is called on for hearing, the Collector shall, unless he adjourns the proceedings, enquire in a summary manner

1. (a) whether the petitioner is entitled to redeem the mortgaged property, and
2. (b) whether the sum deposited by the petitioner is the sum rightly due under the mortgage. If the Collector is not satisfied that the petitioner is entitled to redeem, he shall dismiss the petition. If the Collector is satisfied that the petitioner is entitled to redeem, and that the sum deposited is the sum rightly due under the mortgage, he shall make an order as laid down in section 6 (a), (b),
3. (c) and
4. (d) of this Act. If the Collector is satisfied that the petitioner is entitled to redeem, but is of opinion that a sum larger than that in deposit is due under the mortgage, he shall fix a period not exceeding 30 days within which the petitioner shall deposit the difference, together with any further sum which may be due on account of interest up to the date of deposit. If the petitioner makes such deposit within such period or such further period not exceeding 30 days as the Collector may fix, the Collector shall make an order in manner aforesaid.

Procedure when both parties are in attendance : order for redemption Where both parties appear when the petition is called on for hearing, the Collector shall enquire from the mortgagee whether he admits that the petitioner is entitled to redeem, whether he is willing to accept the sum in deposit in full discharge of the mortgage-debt, and where the mortgage is with possession whether he is willing to surrender possession of the mortgaged property. If the mortgagee replies in the affirmative, the Collector shall make an order as laid down in section 6(a), (b),

1. (c) and
2. (d) of this Act. If the mortgagee admits the petitioner's title to redeem, but demands payment of a sum larger than that in deposit, the Collector shall enquire from the petitioner whether he is willing to pay such larger sum, and if he replies in the affirmative, the Collector shall fix a period not exceeding 30 days within which the petitioner shall deposit the difference, together with any further sum which may be due on account of interest up to the date of deposit. If the petitioner makes such deposit within such period or such further period not exceeding 30 days as the Collector may fix, the Collector shall make an order as laid down in section 6(a), (b),
3. (c) and
4. (d) above.

Procedure in contentious cases If the mortgagee raises objection on any ground other than the amount of the deposit, or if the petitioner is not willing to pay the sum demanded by the mortgagee, the Collector may either

1. (a) for reasons to be recorded dismiss the petition, or
2. (b) make a summary enquiry regarding the objection raised by the mortgagee or regarding the sum due.

If on enquiry regarding any objection so raised by the mortgagee the Collector is of opinion that it bars redemption or is a sufficient cause for not proceeding further with the petition, he shall dismiss the petition; but if he is not of that opinion, he shall, unless he dismisses the petition under section 11, make an order as laid down in section 6 (a), (b),

1. (c) and
2. (d) of this Act.

11. If on enquiry regarding the sum due the Collector is of opinion that the sum deposited is the sum rightly due under the mortgage, he shall, unless he dismisses the petition under section 10, make an order as laid down in section 6(a), (b),

1. (c) and
2. (d) of this Act, but if he is of opinion that a sum larger than the sum deposited should be deposited by the petitioner, he shall, unless he dismisses the petition under section 10, fix a period not exceeding 30 days within which the petitioner shall deposit the difference, together with any further sum which may be due on account of interest up to the date of the deposit. If the petitioner makes such deposit within such period or such further period not exceeding 30 days as the Collector may fix, the Collector shall make an order as laid down in section 6(a), (b),
3. (c) and
4. (d) of this Act.

Saving of suits to establish rights 12. Any party aggrieved by an order made under sections 6, 7, 8, 9, 10 or 11 of this Act may institute a suit to establish his rights in respect of the mortgage; but, subject to the result of such suit, if any, the order shall be conclusive. Notwithstanding anything in this section a mortgagee against whom an ex-parte order under section 7 has been made or a petitioner whose petition has been dismissed in default under section 6 may apply to the Collector to have such order or dismissal set aside and the Collector may in his discretion set aside such order or dismissal on such terms as to costs or otherwise as he may deem fit; provided that the order or dismissal shall not be set aside unless notice of the application has been served on the opposite party.

13.

Return of deposit 14.

Deposit not to be attached 15.

Cessation of interest When the petitioner has deposited with the Collector the sum declared by him to be due on the mortgage, and such sum is accepted by the mortgagee, or is found by the Collector to be the sum actually due, interest on the mortgage shall cease from the date of the deposit. Where the Collector finds that a further sum is due and the petitioner deposits such further sum, interest shall cease from the date of such further deposit : Provided that nothing in this section shall be deemed to deprive the mortgagee of his right to interest when there exists a contract that he shall be entitled to reasonable notice before payment or tender of the mortgage money :

Power to make rules The State Government shall have power to make rules, consistent with this Act, for carrying out the purposes of this Act.