Section 71 in The Transfer of Property Act, 1882
Title: Renewal of mortgaged lease.
When the mortgaged property is as lease 1***, and the mortgagor obtains a renewal of the lease, the mortgagee, in the absence of a contract to the contrary, shall, for the purposes of the security, be entitled to the new lease.
1. The words "for a term of years" omitted by Act 20 of 1929, s. 36.
Title: Rights of mortgagee in possession.
1[A mortgagee] may spend such money as is necessary—
2* * * * *
(b) for 3[the preservation of the mortgaged property] 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 lease-hold, for the renewal of the lease;
and may, in the absence of a 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:
4[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.]
Where the property is by its nature insurable, the mortgagee may also, in the abs ence of a contract to the contrary, insure and keep insured against loss or damage by fire the whole or any pant of such property; and the premiums paid for any such insurance shall be 5[added to the principal money with interest at the same rate as is pay able on the principal money or, where no such rate is fixed, at the rate of nine per cent. per annum]. But the 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.
1. Subs. by s. 37, ibid., for certain words.
2. Clause (a) omitted by s. 37, ibid.
3. Subs. by s. 37, ibid., for "its preservation".
4. Ins. by Act 20 of 1929, s. 37.
5. Subs. by s. 37, ibid., for certain words.
Title: Right to proceeds of revenue sale or compensation on acquisition.
1[73. Right to proceeds of revenue sale or compensation on acquisition.-- (1) Where the mortgaged property or any part thereof or any interest therein is sold owing to failure to pay arrears of revenue or other charges of a public nature or rent due in respect of such property, and such failure did not arise from any default of the mortgage e, the mortgagee shall be entitled to claim payment of the mortgage-money, in whole or in part, out of any surplus of the sale-proceeds remaining after payment of the arrears and of all charges and deductions directed by law.
(2) Where the mortgaged property or any part thereof or any interest therein is acquired under the Land Acquisition Act, 1894 (1 of 1894), or any other enactment for the time being in force providing for the compulsory acquisition of immoveable property, the mortgagee shall be entitled to claim payment of the mortgage-money, in whole or in part, out of the amount due to the mortgagor as compensation.
(3) Such claims shall prevail against all other claims except those of prior encumbrances, and may be enforced notwithstanding that the principal money on the mortgage has not become due.]
1. Subs. by s. 38, ibid., for section 78.
[Right of subsequent mortgagee to pay off prior mortgagee.] Rep. by the Transfer of Property (Amendment) Act, 1929 (20 of 1929), s. 39.
[Rights of mesne mortgagee against and subsequent mortgagees.] Rep. by s. 39, ibid.