“Once a Mortgage Always a Mortgage”: Usufructuary Mortgage is ‘Always’ Redeemable; Limitation of 30 Years NOT Applicable.

Jojy George Koduvath

Legal Principles

  • 1. In a usufructuary mortgage, the usufruct (profits) of the land are being adjusted towards interest on the mortgage amount.
  • 2. Therefore, in a usufructuary mortgage, the mortgagee continues to remain in possession of the mortgaged security, appropriating the usufruct of the mortgaged land towards the interest on the mortgaged debt till the mortgager makes the (re)payment of the mortgage money.
  • 3. Accordingly, the right to seek redemption (i.e., recover possession) of a usufructuary mortgage accrues only on payment of the mortgage money, and the limitation period of 30 years is not related to (any) date of the mortgage.
  • 4. For the above reason, the right of foreclosure (forcing sale through the court) will not accrue to the mortgagee till such time he remains in possession (appropriating the usufruct of the mortgaged land towards the interest).
  • 5. The limitation of 30 years under Article 61(a) begins to run “when the right to redeem or the possession accrues” (that is, on the payment of the mortgage money).
  • 6. A usufructuary mortgagee is not entitled to file a suit for a declaration that he had become an owner (merely) on the expiry of 30 years from the date of the mortgage.
  • 7. The right to seek foreclosure is co-extensive with the right to seek redemption.
  • 8. As shown above, the period of redemption will not start as long as the usufruct of the land is adjusted towards interest on the mortgage amount. In this situation, the principle is invoked: “once a mortgage, always a mortgage” and is “always redeemable”.

In Singh Ram v. Sheo Ram, AIR 2014 SC 3447; 2014-9 SCC 185, the above propositions are laid down as under –

  • “15. We, thus, hold that special right of usufructuary mortgagor under Section 62 of the T.P. Act to recover possession commences in the manner specified therein, i.e., when mortgage money is paid out of rents and profits or partly out of rents and profits and partly by payment or deposit by mortgagor. Until then, limitation does not start for purposes of Article 61 of the Schedule to the Limitation Act. A usufructuary mortgagee is not entitled to file a suit for declaration that he had become an owner merely on the expiry of 30 years from the date of the mortgage. We answer the question accordingly.
  • 16. On this conclusion, the view taken by the Punjab and Haryana High Court will stand affirmed and contrary view taken by the Himachal Pradesh High Court in Bhandaru Ram (D) Thr. L.R. Ratan Lal vs. Sukh Ram (supra) will stand overruled.”

This decision (Singh Ram v. Sheo Ram, AIR 2014 SC 3447; 2014-9 SCC 185) is followed in –

  • Harminder Singhv. Surjit Kaur, 2022-3 CivCC 266; 2022-2 RCR(Civ) 859,
  • Bir Singh v. Ram Kanwar Singh, 2018- 5 RCR(Civ) 403; 2018-15 SCC 341,
  • Mohan Lal v. Mohan Lal, 2016-13 SCC 90.

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