Question

‘A’, the owner of ‘X’, ‘Y’ and ‘Z’ properties, mortgages them to ‘B’ and then sells ‘Z’ property to ‘C’. ‘A’ commits default in payment of mortgage amount then ‘B’ exercises his remedy against the mortgaged properties. In the absence of a contract to the contrary, ‘C’ may demand that the due mortgage amount be satisfied out of:

• A. ‘X’, ‘Y’ and ‘Z’ properties in equal proportion
• B. ‘Z’ property only for half part of mortgage amount
• C. ‘X’ and ‘Y’ properties only
• D. ‘X’ and ‘Y’ properties so far as the same will extend to satisfy the due mortgage amount

Answer 1

Answer: (D)

‘X’ and ‘Y’ properties so far as the same will extend to satisfy the due mortgage amount

Answer 2

Since ‘Z’ property was sold to ‘C’, the mortgagee can claim the due amount from the remaining mortgaged properties, ‘X’ and ‘Y’.