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Which of the following statement(s) is/are correct with regard to 'rights of mortgagee in possession',…

Section 72 permits necessary expenditure for preserving the property, supporting the mortgagor's title, making the mortgagee's title good against the mortgagor, and renewing…

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Which of the following statement(s) is/are correct with regard to 'rights of mortgagee in possession', as per the provisions of the Transfer of Property Act, 1882?
I. A mortgagee may spend such money as is necessary for supporting the mortgagor's title to the property.
II. A mortgagee may spend such money as is necessary when the mortgaged property is a renewable lease-hold, for the renewal of the lease.
III. A mortgagee may spend such money as is necessary to preserve the mortgaged property from destruction, forfeiture, or sale.
IV. A mortgagee may spend such money as is necessary for making his own title thereto good against the mortgagor.

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Answer and explanation

Correct answer C

Section 72 permits necessary expenditure for preserving the property, supporting the mortgagor's title, making the mortgagee's title good against the mortgagor, and renewing a renewable leasehold. All four listed purposes are therefore recognised. For preservation and support of title, the section also requires the mortgagor first to have been called upon and to have failed to take proper and timely steps.

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