Order XXXIV Rule 15 CPC - Mortgages by Deposit of Title Deeds and Charges

Order XXXIV Rule 15 of the Code of Civil Procedure, 1908 (CPC) governs the application of mortgage-suit procedures to mortgages created by depositing title deeds and to charges over immovable property. It also provides a direct method of executing a decree that expressly charges immovable property with payment of money.

Order XXXIV Rule 15 CPC - Statutory provision

Meaning and scope of Rule 15

Sub-rule (1) extends the relevant procedures for a simple mortgage under Order XXXIV to two other forms of security, to the extent that those procedures are suitable: a mortgage by deposit of title deeds and a charge. The words so far as may be require attention to the nature of the security and the relief sought; they do not make every mortgage procedure automatically applicable in every case.

Sub-rule (2) applies where the decree itself directs payment and makes specified immovable property security for that payment on default. The amount may then be recovered by sale of the charged property in execution of that decree, subject to the applicable execution rules and any governing orders.

Relevant definitions under the Transfer of Property Act, 1882

Section 58(b) - Simple mortgage

In a simple mortgage, the mortgagor does not deliver possession but personally binds himself to pay the mortgage money and agrees that, on failure to pay, the mortgagee may cause the mortgaged property to be sold and apply the proceeds towards the debt.

Section 58(f) - Mortgage by deposit of title deeds

This mortgage arises when a person delivers documents of title to immovable property to a creditor or the creditor's agent, in a town specified by Section 58(f), with the intention of creating security over the property. The intention to create security is essential; mere custody of documents does not by itself establish a mortgage.

Section 100 - Charge

A charge arises when immovable property is made security for payment of money by an act of parties or operation of law, but the transaction does not amount to a mortgage. Section 100 generally applies the provisions governing a simple mortgage to such a charge, so far as may be, subject to statutory exceptions, including protection for a transferee for consideration without notice where applicable.

Enforcement and execution of a decree

A creditor enforcing a mortgage by deposit of title deeds or a charge should identify the security, the amount due, the parties whose interests may be affected and the relief permitted by Order XXXIV. The usual mortgage-suit framework can involve a preliminary decree and a final decree for sale, as appropriate. A decree that itself creates a charge for payment on default falls within the express language of Rule 15(2), allowing sale through execution of that decree.

Whether a separate suit, a final decree, or an execution application is required depends on the nature and wording of the existing decree, the type of security and applicable procedural law. State-specific amendments and relevant court decisions should also be checked.

Illustrative example

A borrower deposits property title deeds with a lender with the intention of securing repayment. If the lender sues to enforce that mortgage, Order XXXIV procedures applicable to a simple mortgage may apply by virtue of Rule 15(1). Separately, if a court orders a debtor to pay a sum and expressly charges an identified immovable property on default, Rule 15(2) permits recovery by sale of that property in execution of the decree.

Official statutory references

Read the Code of Civil Procedure, 1908 - Order XXXIV (India Code PDF) and consult the India Code official legislation portal for the Transfer of Property Act, 1882, particularly Sections 58 and 100. Verify any local amendments applicable to the court concerned.

This article explains the central statutory framework for general information. The precise remedy depends on the decree, documents, jurisdiction and applicable amendments.