A mortgaged his property to B for six years on condition that if the money was not paid within the period, the mortgage would be treated as a sale. Discuss the validity of the condition.
While mortgaging A’s property to B for six years, his condition that if the money was not paid to A within the period, the mortgage would be treated as a sale is A clog on redemption of mortgage.Any condition which is a clog on redemption of mortgage is invalid as under Sec. 60 of the Transfer of Property Act, 1882
The same view was held Dhanalakshmi Ammal V. G. Anthuraj AIR 1972 Mad. 150 wherein the supreme Court observed that any condition, which for default of payment of mortgage money, the transaction shall be regarded as an absolute sale is a clog on redemption and hence has no effect.