Anushka Sharma –
Published On: October 13, 2021 at 10:20 IST
The Supreme Court observed that there is no limitation period in case of a Usufructuary Mortgage.
The bench comprising Justice Hemant Gupta and Justice V Ramasubramanian was hearing an Appeal, filed by a Mortgagee, who claimed ownership on the property citing that it had been 45 years since the mortgage had elapsed.
The Supreme Court observed that the Full Bench of Punjab and Haryana High Court, in Ram Krishna and Ors. V Sheo Ram and Ors. has held that there is no limitation period in case of a usufructuary mortgage.
The principle applied in the said case was that once a mortgage is always a mortgage.
The decision of the Punjab and the Haryana High Court was upheld by the court in the Singh Ram (D) Through LRS Vs. Sheo Ram & Ors.
The Supreme Court observed in that judgment, “In a usufructuary mortgage, right to recover possession continues till the money is paid from the rents and profits or where it is partly paid out of rents and profits when the balance is paid by the mortgagor or deposited in Court as provided under Section 62 of the Transfer of Property Act.”
In the Singh Ram case the Supreme Court observed that mere expiry of 30 years from the date of creation of the mortgage does not extinguish the right of the mortgagor under Section 62 of the Transfer of Property Act.