Accession to mortgaged property

  • 30 Jan 2024

Accession to mortgaged property 

                       Section 70 of the TP Act Section 70 refers to the mortgagee's right to accessions to the mortgaged property. Section 63 deals with the expression "accession to mortgaged property" where mortgaged property in possession of the mortgagee has, during the continuance of the mortgage, recieved any accession, the mortgagor, upon redemption shall, in the absence of a contract to the contrary, be entitled as against mortgagee to such accession. There can be natural accessions which are incorporated in the mortgaged property, from part of the mortgagee's security, and revert to the mortgagor upon redemption. 

                       The "doctrine of accession" is limited to cases where the security is existent and has not been destroyed altogether and the mortgagor thereafter acquires while keeping the security intact, a new right which is called accession. 
              It is apparent from the definition of "accession" in Black's Law Dictionary that it is not a case of acquisition of title to personal property. It is necessary that in the combination which has been formed into a single article, existing property is not lost.   
                       Accession is a mode of acquiring property as an addition to existing property by natural growth or by application of human labour. Emphasis is on addition to the existing property. Then there can be addition by natural or artificial means. 
 Where only the building was mortgaged and not the site, it was held that the site cannot be deemed to be an "accession" to the mortgaged property. 
 
 
 
 
Maharaj Educational Trust v. Housing and Urban Development Corpn. Ltd. and Ors. 
                                                   (2017) 14 SCC 453 

 

 

Please see : 

             Baljit Singh v.  Cunnington  1984 SCC OnLine All 106  / AIR 1984 All 209

             Krishna Gopal Sadhani v. A.B. Miller, 1902 SCC OnLine Cal 250 /  ILR (1902) 29 Cal 803

             Macleod v. Kissan  ILR (1906) 30 Bom 250

             Atmakur Venkatasubbiah Chetty v. Devipurasundary Ammal  1964 SCC Onl Bom 250

            Satte Bala Devi v. Sworna Moyee Devi  1938 SCC OnLine Cal 281 4 AIR 1939 Cal 275 -  also.