THE TRANSFER OF PROPERTY ACT 519
If the mortgagee obtains a renewal of the lease, the mortgagor is entitled to the benefit of the renewed lease on redemption.
This is subject to a contract to the contrary.
Right of the Mortgagor to manage
Section 66
As long as the mortgagor remains in possession, he is at liberty to exercise the ordinary rights of property and to receive the rents and profits without accounting for them.
Question is whether the mortgagor is liable for waste ?
This is a Section which deals with the doctrine of waste. Waste is either voluntary or permissive. Voluntary waste implies the doing of some act which tends to the destruction of the premises, as by pulling down houses, or removing fixtures; or to the changing of their nature as the conversion of pasture land into arable or pulling down buildings.
Permissive Waste implies an omission whereby damage result to the premises, where for instance houses are suffered to fall into decay.
To constitute voluntary waste by destruction of the premises, the destruction must be wilful or negligent; it is not waste if the premises are destroyed in the course of reasonable user and any user is reasonable if it is for the purposes for which it is intended to be used, and if the mode and extent of the user is apparently proper, having regard to the nature of the property and what the tenant knows of it.
According to Section 66 the mortgagor is not liable for permissive waste. He is liable for voluntary waste which renders the security insufficient.
A security is insufficient if the value is less than 1/3 of the money due and less than 1/2 if the security is buildings.
For Section 65 A. —Please see page No. 523