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A mortgagee is entitled to exercise the power of sale under section 69 of the Transfer of Property Act,…

Statement I correctly identifies appointment of a named, willing and able receiver by a mortgagee entitled to exercise the section 69 power of sale. Statement II correctly…

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A mortgagee is entitled to exercise the power of sale under section 69 of the Transfer of Property Act, 1882. Which statements about appointment or removal of a receiver under section 69A are correct?

I. Any person who has been named in the mortgage-deed, and is willing and able to act as receiver, may be appointed by the mortgagee.

II. A receiver may, at any time, be removed by writing signed by or on behalf of the mortgagee and the mortgagor, or by the Court upon application made by either party, and on due cause shown.

III. If no person has been so named, or if all persons named are unable or unwilling to act, or are dead, the mortgagee may appoint any person to whose appointment the mortgagor agrees.

IV. If the mortgagor and mortgagee cannot agree on the appointee, the mortgagor shall be entitled to apply to the Court for the appointment of a receiver, and any person appointed by the Court shall be deemed to have been duly appointed by the mortgagee.

Choose the correct option:

Select one answer
Answer and explanation

Correct answer A

Statement I correctly identifies appointment of a named, willing and able receiver by a mortgagee entitled to exercise the section 69 power of sale.

Statement II correctly identifies removal by joint signed writing or by the court on application by either party and due cause.

Statement III correctly gives an agreed replacement when no named receiver is available.

Statement IV correctly describes the effect of a court appointment, but assigns the statutory right to apply to the mortgagor instead of the mortgagee.

Option feedback

Option A

The nomination, removal and agreed fallback rules in I, II and III are correct.

Option B

IV is false because the mortgagee may apply when agreement fails.

Option C

III is also correct. An eligible mortgagee can appoint a person to whom the mortgagor agrees when no named receiver is available.

Option D

This set omits the correct removal rule in II and includes the wrong applicant in IV.

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