What is the period of limitation prescribed for the suit instituted by a mortgagor to recover possession of immoveable property mortgaged?

Question

“… we had referred to the ill - effects of what is known as General Power of Attorney Sales (for short ‘GPA Sales’) or Sale Agreement/General Power of Attorney/Will transfers (for short ‘SA/GPA/WILL’ transfers). Both the descriptions are misnomers as there cannot be a sale by execution of a power of attorney nor can there be a transfer by execution of an agreement of sale and a power of attorney and will. As noticed in the earlier order, these kinds of transactions were evolved to avoid prohibitions/conditions regarding certain transfers, to avoid payment of stamp duty and registration charges on deeds of conveyance, to avoid payment of capital gains on transfers, to invest unaccounted money … and to avoid payment of ‘unearned increases’ due to Development Authorities on transfer.
The modus operandi in such SA/GPA/WILL transactions is for the vendor or person claiming to be the owner to receive the agreed consideration, deliver possession of the property to the purchaser and execute the following documents or variations thereof:
(a) An Agreement of sale by the vendor in favour of the purchaser confirming the terms of sale, delivery of possession and payment of full consideration and undertaking to execute any document as and when required in future.
or
An agreement of sale agreeing to sell the property, with a separate affidavit confirming receipt of full price and delivery of possession and undertaking to execute sale deed whenever required.
or
(b) An Irrevocable General Power of Attorney by the vendor in favour of the purchaser or his nominee authorizing him to manage, deal with and dispose of the property without reference to the vendor
or
A General Power of Attorney by the vendor in favour of the purchaser or his nominee authorizing the attorney holder to sell or transfer the property and a Special Power of Attorney to manage the property
(c) A will bequeathing the property to the purchaser (as a safeguard against the consequences of death of the vendor before transfer is effected).
These transactions are not to be confused or equated with genuine transactions where the owner of a property grants a power of Attorney in favour of a family member or friend to manage or sell his property, as he is not able to manage the property or execute the sale, personally. These are transactions, where a purchaser pays the full price, but instead of getting a deed of conveyance gets a SA/GPA/WILL as a mode of transfer, either at the instance of the vendor or at his own instance.”
[Extracted from Suraj Lamp & Industries (P) Ltd v. State of Haryana (2012) 1 SCC 656].

Answer 1

The key here is to recognise that a mortgagor recovering possession from a mortgagee is really exercising the right of redemption, and that specific type of suit has its own dedicated limitation period rather than falling under the general rules for possession suits.

3 years: too short, and not the period this specific type of claim carries.
10 years: this period applies to other categories of suits in the Schedule, not to mortgage redemption or recovery of possession.
30 years: Article 61(a) of the Limitation Act, 1963 fixes exactly this period for a suit by a mortgagor to redeem or recover possession of mortgaged immovable property, counted from when the right accrues.
12 years: this is the general period for possession suits based on title, but a mortgagor's redemption suit is governed by the separate, longer period reserved for it.

The correct answer is 30 years.

Answer 2

A helpful approach here is to separate two things that sound similar but are legally distinct, a suit to recover possession based simply on ownership or title, and a suit to recover possession specifically because you are a mortgagor exercising your right of redemption.

3 years: this shorter period governs matters like suits on contracts or accounts, it has no application to a mortgagor's possession claim.
10 years: this period is used for certain other reliefs under the Schedule, but is not the one attached to mortgage redemption suits.
30 years: because the mortgagor's claim arises specifically out of the mortgage relationship, the Limitation Act grants a full thirty years for it, longer than an ordinary possession suit, in recognition of how mortgage arrangements can run for extended periods before redemption is sought.
12 years: this shorter period would apply if the claim were simply about title to immovable property generally, rather than a claim rooted in a mortgage relationship.

Once the claim is correctly identified as a mortgagor's redemption suit rather than an ordinary title suit, the applicable limitation period is 30 years.

Answer 3

A helpful approach here is to separate two things that sound similar but are legally distinct, a suit to recover possession based simply on ownership or title, and a suit to recover possession specifically because you are a mortgagor exercising your right of redemption.

3 years: this shorter period governs matters like suits on contracts or accounts, it has no application to a mortgagor's possession claim.
10 years: this period is used for certain other reliefs under the Schedule, but is not the one attached to mortgage redemption suits.
30 years: because the mortgagor's claim arises specifically out of the mortgage relationship, the Limitation Act grants a full thirty years for it, longer than an ordinary possession suit, in recognition of how mortgage arrangements can run for extended periods before redemption is sought.
12 years: this shorter period would apply if the claim were simply about title to immovable property generally, rather than a claim rooted in a mortgage relationship.

Once the claim is correctly identified as a mortgagor's redemption suit rather than an ordinary title suit, the applicable limitation period is 30 years.

What is the period of limitation prescribed for the suit instituted by a mortgagor to recover possession of immoveable property mortgaged?

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The Correct Option is C

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