Section 81 in The Transfer of Property Act, 1882
Title: Marshalling securities.
1[81. Marshalling securities.-- If the owner of two or more properties mortgages them to one person and then mortgages one or more of the properties to another person, the subsequent mortgagee is, in the absence of a contract to the contrary, entitled to have the prior mortgagedebt satisfied out of the property or properties not mortgaged to him, so far as the same will extend, but not so as to prejudice the rights of the prior mortgagee or of any other person who has for consideration acquired an interest in any of the properties.]
1. Subs. by Act 20 of 1929, s. 42, for s. 81.
Title: Contribution to mortgage-debt.
1[Where property subject to a mortgage belongs to two or more persons having distinct and separate rights of ownership therein, the different shares in or parts of such property owned by such persons are, in the absence of a contract to the contrary, liable to contribute rateably to the debt secured by the mortgage, and, for the purpose of determining the rate at which each such share or part shall contribute, the value thereof shall be deemed to be its value at the date of the mortgage after deduction of the amount of any other mortgage or charge to which it may have been subject on that date.]
Where, of two properties belonging to the same owner, one is mortgaged to secure one debt and then both are mortgaged to secure another debt, and the former debt is paid out of the former property, each property is, in the absence of a contract to the contrary, liable to contribute rate ably to the latter debt after deducting the amount of the former debt from the value of the property out of which it has been paid.
Nothing in this section applies to a property liable under section 81 to the claim of the 2[subsequent] mortgagee.
1. Subs by s. 43, ibid., for the first paragraph.
2. Subs. by s. 43, ibid., for "second".
Title: Power to deposit in Court money due on mortgage.
At any time after the principal money 1[payable in respect of any mortgage has become due] and before a suit for redemption of the mortgaged property is barred, the mortgagor, or any other person entitled to institute such suit, may deposit, in any Court in which he might have instituted such suit, to the account of the mortgagee, the amount remaining due on the mortgage.
Right to money deposited by mortgagor.-- The Court shall thereupon cause written notice of the deposit to be served on the mortgagee, and the mortgage e may, on presenting a petition (verified in manner prescribed by 2law for the verification of plaints) stating the amount then due on the mortgage, and his willingness to accept the money so deposited in full discharge of such amount, and-on depositing in the same Court the mortgage-deed 3[and all documents in his possession or power relating to the mortgaged property], apply for and receive the money, and the mortgage-deed, 4[and all such other documents], so deposited hail be delivered to the mortgagor or such other person as aforesaid.
4[Where the mortgagee is in possession of the mortgaged. property, the Court shall, before paying to him the amount so deposited direct him to deliver possession thereof to the mortgagor and at the cost of the mortgagor either to re-transfer the mortgaged property to the mortgagor or to such third person as the mortgagor may direct or to execute and (where the mortgage has been effected by a registered instrument) have registered an acknowledgment in writing that any right in derogation of the mortgagor's interest transferred to the mortgagee has been extinguished.]
1. Subs. by s. 44, ibid., for "has become payable".
2. See the Code of Civil Procedure, 1908 (5 of 1908), Sch. I, Order VI, rule 15.
3. Subs. by Act 20 of 1929, s. 44, for "if then in his possession or power ".
4. Ins. by s. 44, ibid.
Title: Cessation of interest.
When the mortgagor or such other person as aforesaid has tendered or deposited in Court under section 83 the amount remaining due on the mortgage, interest on the principal money shall cease from the date of the tender or 1[in the case of a deposit, where no previous tender of such amount has been made], as soon as the mortgagor or such other person as aforesaid has done all that has to be done by him to enable the mortgagee to take such amount out of Court, 2[and the notice required by section 83 has been served on the mortgagee:
Provided that, where the mortgagor has deposited such amount without having made a previous tender thereof and has subsequently withdrawn the same or any part thereof, interest on the principal money shall be payable from the date of such withdrawal].
Nothing in this section or in section 83 shall be deemed to deprive the mortgagee of his right to interest when there exists a contract that he shall be entitled to reasonable notice before payment or tender of the mortgage-money 3[and such notice has not been given before the making of the tender or deposit, as the case may be.]
1. Ins. by Act 20 of 1929, s. 45.
2. Subs. by s. 45, ibid., for "as the case may be".
3. Added by s. 45, ibid.
1[Parties to suits for foreclosure, sale and redemption] Rep. by the Code of Civil Procedure, 1908 (5 of 1908), s. 156 and the Fifth Schedule.
1. For the repealed provisions, as re-enacted. see (Act 5 of 1908), Sch. I, Order XXXIV.