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Transfer of Property Act, 1882 · Chapter IV: Of Mortgages of Immoveable Property and Charges · Rights and Liabilities of Mortgagor

Section 60: Right of mortgagor to redeem

In plain words

Once the loan is due, the borrower has a right to redeem: on paying the mortgage money, the borrower can get back the mortgage deed and documents, possession if the lender holds it, and a re-transfer or a registered acknowledgment that the lender's rights have ended.

  • The right to redeem continues until ended by the parties' act or a court decree. A clause that clogs or blocks redemption is not allowed.
  • A clause requiring reasonable notice before repayment is valid.
  • A person owning only a share of the property cannot redeem just that share by paying part of the debt, unless the lender has acquired another share.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Read the in-depth explanation, with key Supreme Court rulings ↓

Official text

At any time after the principal money has become [due], [due], the mortgagor has a right, on payment or tender, at a proper time and place, of the mortgage-money, to require the mortgagee (a) to deliver [to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee], (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and (where the mortgage has been effected by a registered instrument) to have registered an acknowledgement in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished:

Provided that the right conferred by this section has not been extinguished by act of the parties or by [decree] of a Court.

The right conferred by this section is called a right to redeem, and a suit to enforce it is called a suit for redemption.

Nothing in this section shall be deemed to render invalid any provision to the effect that, if the time fixed for payment of the principal money has been allowed to p ass or no such time has been fixed. the mortgagee shall be entitled to reasonable notice before payment or tender of such money.

Redemption of portion of mortgaged property.— Nothing in this section shall entitle a person interested in a share only of the mortgaged property to redeem his own share only, on payment of a proportionate part of the amount remaining due on the mortgage, except [only] where a mortgagee, or, if there are more mortgagees than one, all such mortgagees, has or have acquired, in whole or in part, the share of a mortgager.

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Understanding this section

Section 60 gives the mortgagor the right to redeem: once the principal money is due, the mortgagor may pay or tender it and require the mortgagee to return the deed, give back possession, and re-transfer the property. The right is lost only by act of the parties or by a decree of court.

Once a mortgage, always a mortgage

Equity treats the mortgage as only a security. Any term that prevents, evades or unreasonably restricts redemption is a clog on the equity of redemption and is void. A very long fixed term, or a term giving the mortgagee the property if the debt is not paid by a date, may be struck down on this ground. Long terms are not void in themselves; the court looks at whether the bargain is oppressive.

When the right ends

The right subsists as long as the mortgage subsists. It ends when the mortgagor conveys the equity of redemption, when a decree for foreclosure or sale becomes final, or when the property is sold under a valid power of sale. A contract of sale by the mortgagee is not enough; the right ends on a registered conveyance. Under the SARFAESI Act as amended in 2016, the borrower's right to redeem ends once the notice of auction is published.

Key Supreme Court rulings

  • Seth Ganga Dhar v. Shankar Lal 1958 INSC 45

    The rule against clogs in section 60 lets the court relieve a mortgagor not only where redemption is wholly taken away but also where it is restricted, though the extent of that power is limited.

  • Narandas Karsondas v. S. A. Kamtam 1976 INSC 317

    The mortgagor's right of redemption is not extinguished by a mere agreement for sale by the mortgagee under a power of sale; it ends only on a registered conveyance.

  • L.K. Trust v. EDC Ltd. 2011 INSC 374

    The right of redemption is a statutory right that continues though the debt is unpaid on the due date, and is extinguished on execution and registration of the conveyance.

  • Celir LLP v. Bafna Motors (Mumbai) Pvt. Ltd. 2023 INSC 838

    Under section 13(8) of the SARFAESI Act as amended, the borrower's right of redemption is extinguished on publication of the auction notice, and the High Court was wrong to allow redemption after the auction.

Common mistakes

  • Assuming the right to redeem ends on the due date of the loan.
  • Applying the general rule of section 60 to a SARFAESI sale without the 2016 amendment.

Read with: Section 58 Transfer of Property Act, 1882, Section 62 Transfer of Property Act, 1882

Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.

Supreme Court judgments citing the section 60