Usufructuary mortgage: Limitation for redemption starts from payment: SC

Usufructuary mortgage: Limitation for redemption starts from payment: SC

In Dalip Singh (D) through LRs v. Sawan Singh (D) through LRs, the Supreme Court of India clarified the law relating to limitation in cases of usufructuary mortgages. The Court held that where no time limit for redemption is fixed in a usufructuary mortgage, the limitation period does not begin from the date of execution of the mortgage. Instead, limitation under Section 61(a) of the Limitation Act commences only when the mortgagor pays or tenders the mortgage money or deposits it in court in accordance with Section 52 of the Transfer of Property Act. Until such payment or deposit is made, the mortgagor’s right of redemption remains intact. Accordingly, the order allowing redemption was upheld and the mortgagees’ suit was dismissed.