THE TRANSFER OF PROPERTY ACT 525
- Section 69 provides exceptions to this rule.
(i) Where the mortgage is an English mortgage and neither the mortgagor or the mortgagee is a Hindu, Mohamedan or Buddist or a member of a community notified in Gazette,
(ii) Where a power of sale is expressly given by the deed and the mortgagee is the S. of S.
(iii) Where a power of sale is expressly given by the deed and the property or any part of it was on the day of the execution of the deed situated in the towns of Bombay, etc.
Section 69 A.
The mortgagee who has the power (as distinguished from the right) to sell without the intervention of the Court is also entitled to appoint a receiver by writing signed by him or on his behalf.
The exercise of this power of sale or power of appointing a receiver is to notice to the mortgagor.
The notice must be in writing requiring payment of the principal money and default for three months.
Section 73.
I Mortgagee’s Right to proceeds of sale
When property is sold for failure to pay arrears of revenue or other public charges and such failure is not due to default by the mortgagee, the mortgagee is entitled to claim the balance of the sale proceeds.
Similarly if he mortgage property is compulsorily acquired, the mortgagee shall be entitled to claim payment of the mortgage money out of the amount due to the mortgagor as compensation.
His claim shall prevail against all except those of the prior encumbrances.
The claim may be enforced although mortgage money has not become due.
II. Rights of the mortgagee to the maintenance of the Security in tact during the continuance of the mortgage.