Allokam Peddabbayya and Another vs Allahabad Bank - Supreme Court
Allokam Peddabbayya and Another vs Allahabad Bank - Supreme Court Important Judgment 2017 -
On 19th June, 2017, in the case of Allokam Peddabbayya and Another v. Allahabad Bank and Others [Civil Appeal Nos. 2763-2764 of 2008], it was held that the right to enforce a claim for equity of redemption is a statutory right under the Transfer of Property Act, 1882. It necessarily presupposes the existence of a mortgage. The right to redeem can stand extinguished either by the act of the parties or by operation of the law in the form of a Decree of the Court under the proviso to Section 60 of the Act.
It was further held that “if the right to redeem stood extinguished by operation of the law under the proviso to Section 60 of the Act, prior to the period of limitation, it cannot be contended that the right could nonetheless be enforced anytime before the expiry of limitation of 30 years. If there remained no subsisting mortgage, it is difficult to fathom what was to be redeemed.”
Accordingly, in the facts and circumstances of the case, it was held that “the Plaintiffs lost the right to sue for redemption of the mortgaged property by virtue of the proviso to Section 60 of the Act, no sooner that the mortgaged property was put to auction sale in a suit for foreclosure and sale certificate was issued in favour of Defendant no.2. There remained no property mortgaged to be redeemed. The right to redemption could not be claimed in the abstract.”