Section 12 of THE OUDH LAWS ACT, 1876 in hindi
When the right of pre-emption arises in respect of the foreclosure of a mortgage [or a portion of the mortgage], any person entitled to such right may, at any time within three months after the giving of the notice required by section 10, pay or tender to the
↩1.Ins. by U.P. Act 15 of 1939, s. 2.
↩2.Ins. by s. 3, ibid.
↩3.Subs. by s. 4, ibid., for “aforesaid”.
↩4.Ins. by s. 5, ibid.
mortgagee or his successor in title the amount specified in such notice, and shall thereupon acquire a right to purchase the property, [or a portion thereof, as the case may be]. On completion of the purchase the person exercising the right of re-emption shall be bound to pay to the mortgagee or his successor in title the amount specified in such notice, together with interest on the principal sum secured by the mortgage [or the proportionate amount of such principal sum in respect of the portion of the property in which he possesses the right of pre-emption, as the case may be], at the rate specified by the instrument of mortgage, for any time which has elapsed since the date of the notice, and any additional costs which may have been properly incurred by the mortgagee or his successor in title.
Summary
- When a mortgage on a property is foreclosed, a person with a right of pre-emption can step in to buy that property.
- They have a strict time limit of three months from the day the required notice is given to offer the payment.
- The person must pay the exact amount listed in that notice to the mortgage holder or their successor.
- Once the purchase is finished, the buyer must also pay interest on the main mortgage amount, calculated at the rate written in the original mortgage contract, for any time that has passed since the notice date.
- The buyer must also reimburse any extra costs that the mortgage holder properly spent.
Practical examples
FAQ
1. How long does a person have to pay the mortgage holder after receiving notice?
They have exactly three months after the giving of the required notice to pay or offer the money.
2. What happens if a person only has pre-emption rights for a small part of the mortgaged property?
They can acquire just that specific portion by paying the proportionate amount of the principal sum.
3. Does the buyer have to pay any extra money besides the main mortgage amount?
Yes, they must pay interest from the date of the notice and any additional costs that were properly incurred by the mortgage holder.
Test yourself
Q1.Under Section 12 of THE OUDH LAWS ACT, 1876, what is the deadline for a pre-emptor to pay the mortgage holder upon foreclosure?
Q2.Under Section 12 of THE OUDH LAWS ACT, 1876, what interest rate is applied to the time elapsed since the notice was given?
Q3.Section 12 of THE OUDH LAWS ACT, 1876 allows a person to step in after a mortgage foreclosure, but only if they act within three months of a specific notice. According to Section 10 of THE OUDH LAWS ACT, 1876, what must this notice explicitly contain regarding the foreclosure?
Q4.Under Section 12 of THE OUDH LAWS ACT, 1876, besides the principal amount and interest, what else must the person exercising pre-emption pay on completion of the purchase?