Sections 60A-62 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 60A, 60B, 61 and 62 add four practical rights to the mortgagor's right of redemption: asking the lender to assign the debt to someone else, inspecting the title documents, redeeming one of several mortgages on its own, and recovering possession under a usufructuary mortgage. This article takes them in order, as per the text of the Act consulted.
Under section 60A, a mortgagor entitled to redeem may require the mortgagee to assign the mortgage-debt and transfer the property to a person the mortgagor names, instead of re-transferring it to the mortgagor. Section 60B lets him inspect and copy the title documents as long as his right of redemption lasts. Section 61 allows separate or joint redemption of several mortgages to the same lender. Section 62 lets a usufructuary mortgagor recover possession once the debt is cleared in the two stated ways.
Source and how to read it
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003). Later amendments should be checked. Sections 60A, 60B and 61 are printed inside square brackets, which only signals that the wording was inserted or substituted; the copy does not say by which Act. These sections follow the basic right explained in our article on Section 60 and the right to redeem. If the loan documents themselves need to be checked or drawn up, our loan documentation support service can help.
Section 60A: transfer to a third party instead of to the mortgagor
Sub-section (1). Where a mortgagor is entitled to redemption, then on fulfilling any conditions that would entitle him to require a re-transfer, he may require the mortgagee, instead of re-transferring the property, to assign the mortgage-debt and transfer the mortgaged property to the third person the mortgagor directs. The mortgagee "shall be bound" to assign and transfer accordingly.
Sub-section (2). The rights belong to and may be enforced by the mortgagor or by any encumbrancer, notwithstanding an intermediate encumbrance. Two ranking rules follow. The requisition of an encumbrancer prevails over the requisition of the mortgagor, and between encumbrancers the requisition of a prior encumbrancer prevails over that of a subsequent one.
Printing slip: the copy prints "the requisition of any encumbrance shall prevail", which reads as though "encumbrancer" was intended. It is quoted here as printed.
Sub-section (3). The section does not apply to a mortgagee who is or has been in possession.
Example. Anita has mortgaged her shop to Bank A. Her cousin Rahul, who is willing to take over the loan, is named by her as the third person. After meeting the conditions, she can require the lender to assign the debt and transfer the shop to Rahul. If the lender was ever in possession of the shop, sub-section (3) takes this route out of play.
Section 60B: inspection and production of documents
A mortgagor, as long as his right of redemption subsists, is entitled at all reasonable times to inspect and make copies, abstracts or extracts of documents of title relating to the mortgaged property which are in the custody or power of the mortgagee. Three conditions are attached: it is at his request, at his own cost, and on payment of the mortgagee's cost and expenses in this behalf. The right is about documents of title only; the text does not extend it to every paper the lender holds.
Section 61: redeeming several mortgages
A mortgagor who has executed two or more mortgages in favour of the same mortgagee may, in the absence of a contract to the contrary, when the principal money of any two or more has become due, redeem any one separately or any two or more together. The condition is that the principal of the mortgages he wants to redeem has fallen due. A contract in the deeds can change this.
Section 62: right of a usufructuary mortgagor to recover possession
In a usufructuary mortgage the lender takes possession and the mortgagor's right is to recover possession together with the mortgage-deed and all documents relating to the property in the lender's possession or power. The section sets two cases.
| Case | Where the mortgagee is authorised to pay himself | The mortgagor can recover possession |
|---|---|---|
| (a) | The mortgage-money from the rents and profits of the property | When such money is paid |
| (b) | From the rents and profits, or any part of them, a part only of the mortgage-money | When the term (if any) fixed for payment of the mortgage-money has expired and the mortgagor pays or tenders the mortgage-money or the balance, or deposits it in Court |
In case (a) the loan clears itself from the income, so possession returns when the money is paid. In case (b) only part is recoverable from the income; the mortgagor must pay or tender the money or the balance after the term, or deposit it in Court.
Printing slip: clause (b) ends with "or deposits it in Court hereinafter provided". Read it as a reference to the deposit procedure given later in the Chapter. The Court deposit is covered in our article on sections 83 and 84.
Comparing the four provisions
| Section | Who may use it | What it gives | Main limit |
|---|---|---|---|
| 60A | Mortgagor, or any encumbrancer | Assignment and transfer to a third person named by the mortgagor | Not against a mortgagee who is or has been in possession |
| 60B | Mortgagor | Inspection and copies of title documents | While redemption right subsists; at his cost plus the lender's costs |
| 61 | Mortgagor with two or more mortgages to the same lender | Separate or joint redemption | Contract to the contrary |
| 62 | Usufructuary mortgagor | Recovery of possession with documents | The payment conditions in (a) or (b) |
Practical notes
- Do not mix up 60A and 60: section 60 gives a re-transfer to the mortgagor; section 60A is the choice to have the debt and property transferred to someone he names.
- Ask in writing for inspection under section 60B and keep a note of what was examined.
- Check the deed before relying on section 61; it is subject to a contrary contract.
- For a usufructuary mortgage, identify which case, (a) or (b), your deed falls under before you tender payment.
- Registration and stamp duty on any new transfer are not in this Act. See our guide on how to register a mortgage deed.
Need help with mortgage paperwork?
If you need to take over a loan, check what a lender holds, or draft a deed that is clear about separate redemption, our loan documentation support team can go through the mortgage-deed with you and flag the clauses that matter.
Key takeaways
- Section 60A lets the mortgagor direct an assignment of the debt and transfer of the property to a named third person.
- An encumbrancer can also use that right, and an encumbrancer's requisition prevails over the mortgagor's.
- Section 60B gives inspection and copying of title documents at the mortgagor's cost, while redemption is possible.
- Section 61 allows separate or joint redemption of several mortgages to the same lender, unless the contract says otherwise.
- Section 62 returns possession in a usufructuary mortgage on payment as set out in clause (a) or (b).
Read next
- Section 60: right of the mortgagor to redeem
- Sections 63 and 64: accession, improvements and renewed lease
- Mortgage deed: drafting essential clauses and registration
- How to register a mortgage deed
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.