Mortgages of Immovable Property and Charges in India
Introduction: In the realm of property law, mortgages, and charges are fundamental legal mechanisms that facilitate financial transactions while safeguarding the interests of both lenders and borrowers. These instruments are particularly significant in the context of immovable property, such as land and buildings, where substantial capital is involved. In India, the legal framework governing mortgages and charges is primarily laid down under the Transfer of Property Act, of 1882 , along with relevant provisions in the Indian Contract Act, of 1872 , the Indian Registration Act, of 1908 , and the Companies Act, of 2013 . Mortgages and charges serve as security mechanisms, ensuring that loans or obligations are adequately secured against immovable property. However, while they share a common purpose of securing debts, they are fundamentally different in terms of their legal nature, rights conferred, and enforcement mechanisms. A mortgage involves the transfer of an interest in...