#Mortgage Law

The court ruled that a purchaser at a mortgage auction steps into the shoes of the mortgagor and cannot displace statutory tenants without invoking specific grounds under the Jharkhand Building (Lease, Rent and Eviction) Control Act. The judgment protects shop owners and tenants from summary eviction following a secured creditor's sale of the property.

The Andhra Pradesh High Court has ruled that a secured creditor’s prior registered mortgage takes precedence over a later civil court attachment, compelling registration of the SARFAESI sale certificate regardless of the property’s inclusion in a prohibited list. This reinforces the supremacy of secured interests under the SARFAESI Act and clarifies that administrative restrictions cannot override statutory priority rights of financial institutions.

The Punjab & Haryana High Court ruled that a mortgagee who disclaims interest in prior litigation is estopped from later claiming insurance proceeds, reinforcing that judicial admissions bind parties even against contractual rights. This decision underscores the irrevocable nature of admissions in legal proceedings, impacting mortgagees and insurers in similar disputes.

Punjab & Haryana HC rules that contractual interest rates in mortgage agreements prevail over statutory caps, even for agricultural loans. The court held that Order XXXIV Rule 11 CPC governs interest awards, prioritizing contractual terms over the borrower's purpose, impacting lenders and borrowers in mortgage disputes.

Punjab & Haryana High Court holds that usufructuary mortgages without fixed redemption periods remain redeemable indefinitely, overturning lower courts' decrees on adverse possession.