In essence, a mortgage is a contract between two parties (i.e. a borrower/ mortgagor and a lender/ mortgagee) where a capital sum of money is lent in exchange for a proprietary interest in land

 In essence, a mortgage is a contract between two parties (i.e. a borrower/ mortgagor and a lender/ mortgagee) where a capital sum of money is lent in exchange for a proprietary interest in land. It is important to note that unlike other proprietary interests in land, a right accrues to both the mortgagor and a mortgagee once a mortgage deed has been executed between two parties. These interests are: 1) the mortgagor's/ borrower's right to have the land redeemed/ returned once the capital money lent has been repaid; and 2) the mortgagee's/ lender's right to possess and acquire the property if the capital money lent is not repaid as stipulated in the mortgage deed. The proprietary rights of both the mortgagor and mortgagee are independent proprietary interests and there is oftentimes no bar on the parties to transfer and/or sell their respective rights in the mortgage to subsequent parties.

The rights of both the mortgagor as well as the mortgagee are also enumerated in the TPA 1882. The relevant portion of section 60 deals with the right of the mortgagor to redeem the property he has mortgaged.

Mortgages are regulated in the province of Punjab by the Punjab Redemption and Restitution of Mortgaged Lands Act 1962 (hereinafter referred to as the "Mortgage Act"). For the purposes of the present appeal, it may be prudent to reproduce the relevant portions of the Mortgage Act for ease of reference. Section 1 of the Mortgage Act deals with the extent of the Act.

CIVIL APPEAL NO.339 OF 2016
Dadu Khan (deed.) thr. LRs and 3 others VERSUS Ghulam Abbas and 23 others
23-08-2022