Diffrence Between Simple and Usufructuary Mortgage
Simple Mortgage
1. In this transaction, the mortgagor a personally bound to repay the mangage money
2. No possession of mortgaged property is delivered or agreed to be delivered.
3. The remedies for the mortgagee against mortgagor are two :
(i) He can sue personally the mortgagor for the payment of mortgage money undertaking, or
(ii) he can cause the property to be sold
4. The time is stipulated for the payment of the mortgage money at the time of the contract.
Unsufructuary Mortgage
1. In this kind of mortgage, there is no such personal undertaking given by the mortgagor.
2. Here, the possession of mortgaged property is delivered or agreed to be delivered to the mortgage.
3. The only remedy available to the mortgagee is to retain the mortgaged property until the payment of mortgage money and adjust the rent and benefits of the mortgaged property to the mortgage debt and its interest only U/S. 68 (d) .He is entitled to sue the mortgagor for the mortgage money. where the mortgagor fails to deliver the possession of the property.
4. In this mortgage, the time for the payment of mortgage money is not stipulated but he is entitled to retain the property until the payment of the mortgage money.
1. Simple Mortgage
According to S. 58(b), where the mortgagor promises to pay the mortgage-money (loan) without delivering possession of the mortgage property and agrees expressly or impliedly that in case of non-payment of loan, the mortgagee shall have the right to cause the mortgage-proprty to be sold, the mortgage is a simple mortgage.
2. Usufructuary Mortgage
According to S. 58(d) mortgage is usufructuary where the mortgagor gives possession of the property to mortgagee. Since possession is with mortgagee, he gets the usufruct ie. produce, benefits, rents or profits of the mortgage- property. In a wafructuary mortgage, the mortgagee is entitled to enjoy the benefits of mortgage-property in lieu of interest of the principal money (debt) advanced by him. So, on payment of debt (principal money) the mortgagee has no right of possession. Where the property is capable of giving good produce or benefits, the parties may also agree that mortgagee is entitled to get the usufruct of property not only in lieu of interest but also in part-payement of the money advanced.
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