Rights to Redemption vs Equity of Redemption

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The basic meaning of word Redemption is to redeem or to get back. In the context of Mortgage under the property law in India, this right is a significant right of every mortgagor howsoever the nature of mortgage is. Once the payment of money is made by the debtor on or before the due date, he is eligible for redemption right. Redemption is not only limited to mortgaged property but also the title deeds and important documents related to the property. Whereas, when we talk about equity of redemption which is the base or the source of redemption right, originated in England. Under equity of redemption, the debtor or the mortgagor will be given an extended time period or a reasonable extra time period is given even after due date. The reason for this extension is that whenever a mortgage is executed the intension of the mortgagor is always to let it remain a mortgage and not to be converted into a sale. Therefore, for the protection of his rights this extension may be given to him by the courts so that he can make his payments in favour of the mortgagee. It is done on the basis of justice and good conscience. Also, this inherent right cannot be waived of by the parties even though they have expressly made an agreement in that respect. Under property law in India, once the payment is done, then the mortgagor can redeem his property and then the right to redemption is extinguished or when the court orders for extinguishment of the right then also it can be extinguished. After excursing this right, the possession of the property which was mortgaged as well the deeds of the said property are delivered to the mortgagor. Secondly, in case of any stipulation in the agreement which puts any kind of hindrance in the exercise of redemption right, will be deemed as clog and hence void. It can be anything like postponement of redemption rights for a greater number of years, collateral unreasonable benefits asked by the mortgagee etc.

Ms. Manisha Madhav
Assistant Professor

JEMTEC, School of Law, Greater Noida

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