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Under the central rule in section 59 of the Transfer of Property Act, 1882, which of these mortgages…

Section 59 of the Transfer of Property Act generally requires a registered instrument where the principal is ₹100 or more, and excepts a mortgage by deposit of title deeds.…

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Under the central rule in section 59 of the Transfer of Property Act, 1882, which of these mortgages can be created without a registered instrument when the principal is ₹100 or more? Assume that all other requirements for the particular mortgage are met.

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Answer and explanation

Correct answer C

Section 59 of the Transfer of Property Act generally requires a registered instrument where the principal is ₹100 or more, and excepts a mortgage by deposit of title deeds.

A qualifying deposit under section 58(f) can create the security. A document that itself creates or sets out the operative mortgage bargain can raise a separate registration requirement under section 17 of the Registration Act.

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Option A

Section 59 requires a registered instrument for a usufructuary mortgage securing ₹100 or more.

Option B

An anomalous mortgage falls under the registration rule for the stated amount. It is not the deposit-of-title-deeds exception.

Option C

A qualifying deposit of title deeds with intent to create security falls within the exception in section 59.

Option D

A mortgage by conditional sale at the stated amount requires a registered instrument.

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