Usufructuary Mortgage - Limitation - Right to recover possession continues 1) till the money is paid out of rents & profits, or 2) where it is partly paid out of rents and profits, subsequently, when the balance is paid by mortgagor or deposited in Court pursuant to Section 62 of Transfer of Property Act.

Very recently, the Hon'ble Supreme Court in Singh Ram (D) Thr. L.Rs Vs Sheo Ram & Ors made it crystal clear that limitation to recover possession in usufructuary mortgage will not commence from the date of mortgage but when the money is paid out of rents & profits or where the partly amount is paid out of rents & profits, and balance is paid by the mortgagor or deposited in the Court as provided under Section 62 of the Transfer of Property Act. In the subject case, the Plaintiff (mortgagee) filed a suit for declaration of title over the mortgaged property on the ground that the Defendant has not redeemed the property for 30 years since the date of mortgage and the same was negated by the Hon'ble Supreme Court.  The relevant portion is extracted herein under;

"15. We, thus, hold that special right of usufructuary mortgagor under Section 62 of the T.P. Act to recover possession commences in the manner specified therein, i.e., when mortgage money is paid out of rents and profits or partly out of rents and profits and partly by payment or deposit by mortgagor. Until then, limitation does not start for purposes of Article 61 of the Schedule to the Limitation Act. A usufructuary mortgagee is not entitled to file a suit for declaration that he had become an owner merely on the expiry of 30 years from the date of the mortgage. We answer the question accordingly."