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Under the second paragraph of section 59 of the Transfer of Property Act, 1882, where the principal…

Under the second paragraph of section 59 of the Transfer of Property Act, 1882, a mortgage securing less than Rs. 100 may be effected by a registered instrument signed by…

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Under the second paragraph of section 59 of the Transfer of Property Act, 1882, where the principal secured is less than Rs. 100, how may a mortgage other than a simple mortgage be effected?

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Answer and explanation

Correct answer C

Under the second paragraph of section 59 of the Transfer of Property Act, 1882, a mortgage securing less than Rs. 100 may be effected by a registered instrument signed by the mortgagor and attested by at least two witnesses, or, except for a simple mortgage, by delivery of the property. A mortgage by deposit of title deeds is separately recognized by sections 58(f) and 59.

Option feedback

Option A

A bare oral agreement is insufficient. Delivery of the property is one statutory mode for qualifying mortgages.

Option B

An unregistered instrument by itself is not the prescribed mode under the second paragraph of section 59.

Option C

Delivery of the property is available under the second paragraph when the principal is less than Rs. 100 and the mortgage is not a simple mortgage.

Option D

Incorrect. A registered mortgage instrument under Section 59 must be signed by the mortgagor and attested by at least two witnesses, not attested by the mortgagee and one witness.

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