The appeal filed before the court in case Ram Dattan (Dead) by LR vs Devi Ran and others, 2021, this appeal is regarding usufructuary mortgage the issue before the court is of recovery of possession from the mortgagee and the mortgagee contended that the property mortgaged 45 years ago, so the right to recover the possession elapsed due to delay.

The bench comprised of Justice Hemant Gupta and V Ramasubramanian dealing with this appeal.

The bench observed the decision of Punjab and Haryana High Court in Ram Singh and judgment of Supreme court in Singh Ram by LR vs Sheo ram and others, 2014. The decision of the apex court was that in the case of a usufructuary mortgage the right to redeem the mortgaged property continues till the money is paid out of rents or profit coming out of the mortgaged property or the money partly paid out of rents or profit when under section 62 of TPA the balanced money is deposited by the mortgagor in court.

The court further observed that the right to redeem the mortgaged property in case of mortgage other than usufruct is given under section 60 of Transfer of Property act while the Usufructuary mortgaged given under section 62 of Transfer of Property act. Section 62 says that the right to recover the possession of mortgaged property commence when the money is begin to paid out of usufruct or partly by usufruct and money deposited by the mortgagor.

The distinction between the usufruct mortgages is given under section 58, section 60 and section 62 of Transfer of property act read with article 61 of Limitation act. The usufructuary mortgage is different from other mortgages by virtue of section 62 of TPA. It’s an equitable right for redeeming the property recognized by section 62 of TPA.

On the basis of this judgment, the apex court dismissed the appeal in the present case.