Section 72State of Jammu-Kashmir Act

Section 72: Rights of mortgagee in possession

Transfer of Property Act, 1977

Rights of mortgagee in possession.

- [A mortgagee] [In section 72 'A mortgagee' substituted for the words 'When, during the continuance of the mortgage, the mortgagee takes possession of the mortgaged property, he' ; clause (a) omitted ; in clause (b) words in brackets substituted for 'its preservation' ; proviso added and words in brackets after the proviso substituted for the word 'a charge on the mortgaged property, in addition to the principal money, with the same priority and with interest at the same rate' by Act VI of Samvat 1996.] may spend such money as is necessary-

(a)

[ Omitted] [In section 72 'A mortgagee' substituted for the words 'When, during the continuance of the mortgage, the mortgagee takes possession of the mortgaged property, he' ; clause (a) omitted ; in clause (b) words in brackets substituted for 'its preservation' ; proviso added and words in brackets after the proviso substituted for the word 'a charge on the mortgaged property, in addition to the principal money, with the same priority and with interest at the same rate' by Act VI of Samvat 1996.].

(b)

for [the preservation of the mortgaged property] [In section 72 'A mortgagee' substituted for the words 'When, during the continuance of the mortgage, the mortgagee takes possession of the mortgaged property, he' ; clause (a) omitted ; in clause (b) words in brackets substituted for 'its preservation' ; proviso added and words in brackets after the proviso substituted for the word 'a charge on the mortgaged property, in addition to the principal money, with the same priority and with interest at the same rate' by Act VI of Samvat 1996.] from destruction, forfeiture or sale ;

(c)

for supporting the mortgagor's title to the property ;

(d)

for making his own title thereto good against the mortgagor ; and

(e)

when the mortgaged property is a renewable leasehold, for the renewal of the lease ;

and may, in the absence of contract to the contrary, add such money to the principal money, at the rate of interest payable on the principal, and where no such rate is fixed, at the rate of nine per cent per annum :[Provided that the expenditure of money by the mortgagee under clause (b) or clause (c) shall not be deemed to be necessary unless the mortgagor has been called upon and has failed to take proper and timely steps to preserve the property or to support the title.] [In section 72 'A mortgagee' substituted for the words 'When, during the continuance of the mortgage, the mortgagee takes possession of the mortgaged property, he' ; clause (a) omitted ; in clause (b) words in brackets substituted for 'its preservation' ; proviso added and words in brackets after the proviso substituted for the word 'a charge on the mortgaged property, in addition to the principal money, with the same priority and with interest at the same rate' by Act VI of Samvat 1996.]Where the property is by its nature insurable, the mortgagee may also, in the absence of a contract to the contrary, insure and keep insured against loss or damage by fire the whole or any part of such property ; and the premiums paid for any such insurance shall be [added to the principal money with interest at the same rate as is payable on the principal money, or, where no such rate is fixed, at the rate of nine per cent per annum.] [In section 72 'A mortgagee' substituted for the words 'When, during the continuance of the mortgage, the mortgagee takes possession of the mortgaged property, he' ; clause (a) omitted ; in clause (b) words in brackets substituted for 'its preservation' ; proviso added and words in brackets after the proviso substituted for the word 'a charge on the mortgaged property, in addition to the principal money, with the same priority and with interest at the same rate' by Act VI of Samvat 1996.] But amount of such insurance shall not exceed the amount specified in this behalf in the mortgage deed or (if no such amount is therein specified) two thirds of the amount that would be required in case of total destruction to reinstate the property insured.Nothing in this section shall be deemed to authorise the mortgagee to insure when an insurance of the property is kept up by or on behalf of the mortgagor to the amount in which the mortgagee is hereby authorised to insure.

Sec 71 — Renewal of mortgaged lease

Sec 73 — [ Right to proceeds of revenue sale or compensation on acquisition. [Section 73 substituted and sections 74 and 75 omitted by Act VI of Samvat 1996.]

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