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X mortgages agricultural land to Y for ₹50 lakh for a term of 90 years. X's right to redeem remains…

Section 60 of the Transfer of Property Act, 1882 gives the mortgagor the right to redeem after the principal becomes due. In Seth Ganga Dhar v. Shankar Lal, the Supreme…

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X mortgages agricultural land to Y for ₹50 lakh for a term of 90 years. X's right to redeem remains exercisable when the principal becomes due. No other facts suggest oppression or a bar to redemption. What follows from the length of the term alone?

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Answer and explanation

Correct answer A

Section 60 of the Transfer of Property Act, 1882 gives the mortgagor the right to redeem after the principal becomes due. In Seth Ganga Dhar v. Shankar Lal, the Supreme Court distinguished a long postponement of redemption from a separate forfeiture clause that extinguished redemption. Whether a term operates as a clog depends on the bargain and its circumstances.

Option feedback

Option A

A long term alone does not establish a clog. The court considers the effect of the terms in their setting.

Option B

Section 58(e) defines an English mortgage by its terms of repayment, transfer and retransfer, rather than its length.

Option C

The length of the term does not convert security for a debt into an outright sale.

Option D

A very long term can be relevant to oppression, but its length does not decide the issue by itself.

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