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Under section 73 of the Transfer of Property Act, 1882, a mortgagee may claim payment from specified…

Section 73 allows a mortgagee to claim against qualifying surplus revenue-sale proceeds when the mortgagee was not at fault for the default. The mortgagee may also claim…

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Under section 73 of the Transfer of Property Act, 1882, a mortgagee may claim payment from specified proceeds when the mortgaged property is sold for revenue arrears or acquired. What doctrine does this illustrate?

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Answer and explanation

Correct answer D

Section 73 allows a mortgagee to claim against qualifying surplus revenue-sale proceeds when the mortgagee was not at fault for the default.

The mortgagee may also claim against compensation due to the mortgagor on acquisition. In either case, the proceeds take the place of the property as security.

Option feedback

Option A

Section 82 concerns sharing the burden of mortgage debt across separately owned shares or parts of the mortgaged property.

Option B

Section 35 concerns election where an unauthorised disposition and a benefit to the true owner occur in the same transaction.

Option C

Section 81 concerns how a later mortgagee can require an earlier mortgage debt to be satisfied out of other mortgaged property, subject to statutory safeguards.

Option D

Section 73 lets a mortgagee look to specified proceeds or compensation that replace the property as security.

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