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Appendix D Preliminary Decree For Foreclosure Or Sale - Legal Draft

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Category : Agreements Civil Procedure Code

[Plaintiff.......

1st Mortgage,Vs.Defendant

No.1....... Mortgagor.Defendant

No.2....... 2nd Mortgagee.](Order

XXXIV, rules 2 and 4)

1.

The

suit coming on this ......................day, etc.; It is hereby declared that

the amount due to the plaintiff on the mortgage mentioned in the plaint

calculated up to this day of is the sum of Rs. For principal, the sum of

Rs............... For interest on the said principal, the sum of

Rs..........For costs, charges and expenses (other than the costs of the suit)

incurred by the plaintiff in respect of the mortgage-security with interest

thereon and the sum of Rs............ For the costs of this suit awarded to the

plaintiff, making in all the sum of Rs............(Similar

declarations to be introduced with regard to the amount due to defendant No.2

in respect of his mortgage if the mortgage-money due there under has become

payable at the date of the suit.)2.

It

is further declared that the plaintiff is entitled to payment of the amount due

to him in priority to defendant No.2 {Words not required to be deleted} [or (if

there are several subsequent mortgagees) that the several parties hereto are

entitled in the following order to the payment of the sums due to them

respectively:-].3.

And

it is hereby ordered and decreed as follows:-i.a. that defendants or

one of them do pay into Court on or before the day of or any later date up to

which time for payment has been extended by the Court the said sum of Rs. Due

to the plaintiff; andb. that defendant No.1

do pay into Court on or before the day of or any later date up to which time

for payment has been extended by the Court the said sum of Rs. Due to defendant

No.2; andi.ii.

that,

on payment of the sum declared to be due to the plaintiff by defendants or

either of them in the manner prescribed in clause (I) (a) and on payment

thereafter before such date as the Court may fix of such amount as the Court

may adjudge due in respect of such costs of the suit and such costs, charges

and expenses as may be payable under rule 10, together with such subsequent

interest as may be payable under rule 11, of Order XXXIV of the First Schedule

to the Code of Civil Procedure, 1908, the plaintiff shall bring into Court all

documents in his possession or power relating to the mortgaged property in the

plaint mentioned, and all such documents shall be delivered over to the

defendant No. (who has made the payment) or to such person as he appoints, and

the plaintiff shall, if so required, re-convey or re-transfer the said property

free from the said mortgage and clear of and from all in cumbrances created by

the plaintiff or any person claiming under him or any person under whom he claims,

and also free from all liability whatsoever arising from the mortgage or this

suit and shall, if so required, deliver up to the defendant No. (who has made

the payment) quiet and peaceable possession of the said property.(Similar

declarations to be introduced, if defendant No.1 pays the amount found or

declared to be due to defendant No.2 with such variations as may be necessary

having regard to the nature of his mortgage.)1.2.3.4. And it is hereby

further ordered and decreed that, in default of payment as aforesaid of the

amount due to the plaintiff, the plaintiff shall be at liberty to apply to the

court for a final decree-i.

{Words

not required to be deleted} [in the case of a mortgage by conditional sale or

an anomalous mortgage where the only remedy provided for in the mortgage-deed

is foreclosure and not sale] that the defendants jointly and severally shall

thenceforth stand absolutely debarred and foreclosed of and from all right to

redeem the mortgaged property described in the Schedule annexed hereto and

shall, if so required, deliver to the plaintiff quiet and peaceable possession

of the said property; orii.

{Words

not required to be deleted} (in the case of any other mortgage) that the

mortgaged property or a sufficient part thereof shall be sold; and that for the

purposes of such sale the plaintiff shall produce before Court or such officer

as it appoints, all documents in his possession or power relating to the

mortgaged property; andiii.

{Words

not required to be deleted} [in the case where a sale is ordered under clause 4

(ii) above] that the money realised by such sale shall be paid into Court and

be duly applied (after deduction there from of the expenses of the sale) in

payment of the amount payable to the plaintiff under this decree and under any

further orders that may have been passed in this suit and in payment of the

amount which the Court may adjudge due to the plaintiff in respect of such

costs of the suit and such costs, charges and expenses as may be payable under

rule 10, together with such subsequent interest as may be payable under rule

11, of Order XXXIV of the First Schedule to the Code of Civil Procedure, 1908,

and that the balance, if any, shall be applied in payment of the amount due to

defendant No.2; and that if any balance be left, it shall be paid to the

defendant No.1 or other persons entitled to receive the same; andiv.

that,

if the money realised by such sale shall not be sufficient for payment in full

of the amounts due to the plaintiff and defendant No.2, the plaintiff or

defendant No.2 or both of them, as the case may be shall be at liberty (when

such remedy is open under the terms of their respective mortgages and is not

barred by any law for the time being in force) to apply for a personal decree

against defendant No.1 for the amounts remaining due to them respectively.1.2.3.4.5. And it is hereby

further ordered and decreed-a. that if defendant

No.2 pays into Court to the credit of this suit the amount adjudged due to the

plaintiff, but defendant No.1 makes default in the payment of the said amount,

defendant No.2 shall be at liberty to apply to the Court to keep the

plaintiff's mortgage alive for his benefit and to apply for a final decree (in

the same manner as the plaintiff might have done under clause 4 above)-i. {Words not required

to be deleted} [(I) that defendant No.1 shall thenceforth stand absolutely

debarred and foreclosed of and from all right to redeem the mortgaged property

described in the Schedule annexed hereto and shall, if so required, deliver up

to defendant No.2 quiet and peaceable possession of the said property;] orii. {Words not required

to be deleted} [(ii) that the mortgaged property or a sufficient part thereof

be sold and that for the purposes of such sale defendant No.2 shall produce

before the Court or such officer as it appoints, all documents in his

possession or power relating to the mortgaged property;]1.a.b.and (if on the

application of defendant No.2 such a final decree for foreclosure is passed),

that the whole of the liability of defendant No.1 arising from the plaintiff's

mortgage or from the mortgage of defendant No.2 or from this suit shall be

deemed to have been discharged and extinguished.2.3.4.5.6. And it is hereby

further ordered and decreed {Words not required to be deleted} [in the case

where a sale is ordered under clause 5 above]-i.

that

the money realised by such sale shall be paid into Court and be duly applied

(after deduction there from of the expenses of the sale) first in payment of

the amount paid by defendant No.2 in respect of the plaintiff's mortgage and

the costs of the suit in connection therewith and in payment of the amount

which the Court may adjudge due in respect of subsequent interest on the said

amount; and that the balance, if any, shall then be applied in payment of the

amount adjudged due to defendant No.2 in respect of his own mortgaged under

this decree and any further orders that may be passed and in payment of the

amount which the Court may adjudge due in respect of such costs of this suit

and such costs, charges and expenses as may be payable to defendant No.2 under

rule 10, together with such subsequent interest as may be payable under rule

11, of Order XXXIV of the First Schedule to the Code of Civil Procedure, 1908,

and that the balance, if any shall be paid to defendant No.1 or other persons

entitled to receive the same; andii.

that,

if the money realised by such sale shall not be sufficient for payment in full

of the amount due in respect of the plaintiff's mortgage or defendant No.2's

mortgage, defendant No.2 shall be at liberty (where such remedy is open to him

under the terms of his mortgage and is not barred by any law for the time being

in force) to apply for a personal decree against No.1 for the amount of the

balance.2.3.4.5.6.7. And it is hereby

further ordered and decreed that the parties are at liberty to apply to the

Court from time to time as they may have occasion, and on such application or

otherwise the Court may give such directions as it thinks fit.


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