Supreme Court: Limitation for Redemption in Usufructuary Mortgages Starts Only After Mortgage Money Is Paid

The Supreme Court held that in usufructuary mortgages, the limitation period for redemption does not begin from the date of creation of the mortgage.

The Court clarified that the limitation begins only from the date on which the mortgage money is paid or adjusted in accordance with the law. 

Dismissing the appeal filed by the mortgagees, it observed that the mere passage of time cannot extinguish the mortgagor’s statutory right of redemption. The Court further held that mortgagees cannot claim ownership of the mortgaged property solely on the ground of limitation. 

Upholding the Punjab and Haryana High Court’s ruling, it affirmed the order permitting redemption of the mortgaged land.

[Dalip Singh v. Sawan Singh]