Section 60 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 60 is the borrower's section. It says that once the principal money has become due, the mortgagor can pay or tender the mortgage-money and then require the mortgagee to hand back the papers, give up possession and release the property. This article explains each limb as per the text of the Act consulted.
The right to redeem belongs to the mortgagor, and it arises after the principal money has become due. On payment or tender, at a proper time and place, the mortgagee must do three things: deliver the mortgage-deed and related documents, deliver possession if he holds it, and re-transfer the property or have an acknowledgment of extinguishment executed. The right is lost only by act of the parties or by a decree of a Court, and a part-owner cannot redeem just his own share except in one narrow case.
What the section is about
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003); later amendments should be checked. Section 60 sits at the start of the group on the rights and liabilities of the mortgagor. The mortgage itself, with its six kinds, is explained in our article on Section 58 and the kinds of mortgage, and how a mortgage is made is in the article on sections 59 and 59A.
Think of a simple case. Meera borrowed money from a lender, Harish, and mortgaged her flat. The loan has fallen due and she is ready to pay. Section 60 tells her what she can demand once she pays, and it tells Harish what he must do. If you are planning to borrow against a property, our loan against property service covers how such loans are structured.
When the right arises and what the mortgagor must do
The text says that "at any time after the principal money has become due", the mortgagor has a right "on payment or tender, at a proper time and place, of the mortgage-money" to require the mortgagee to act. Three points follow.
- Timing. The right arises after the principal money has become due. The word "due" is printed in square brackets in the copy, which marks it as inserted or substituted wording.
- Payment or tender. Either paying or tendering is enough. A tender is an offer of the money; the section does not require the mortgagee to have accepted it before the right can be used.
- Proper time and place. The text does not define these. It is silent on what a proper time or place is, so the mortgage-deed and the circumstances decide.
The three things the mortgagee must do
| Clause | What the mortgagee must do | Applies when |
|---|---|---|
| (a) | Deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property that are in the mortgagee's possession or power | Always |
| (b) | Deliver possession of the mortgaged property to the mortgagor | Where the mortgagee is in possession |
| (c) | At the mortgagor's cost, either re-transfer the property to the mortgagor or to a third person he directs, or execute an acknowledgment in writing that any right in derogation of the mortgagor's interest has been extinguished | Always; the acknowledgment must also be registered where the mortgage was made by a registered instrument |
In clause (c) the choice between a re-transfer and an acknowledgment sits in the text; it does not say who chooses. The cost of the step falls on the mortgagor. The registration requirement is attached only to the acknowledgment and only where the mortgage was effected by a registered instrument. Registration charges are not in this Act; see our guide on how to register a mortgage deed and the stamp duty on a mortgage deed.
Clause (c) also lets the mortgagor name a third person to whom the property is to be re-transferred. The next provision in the Act, section 60A, builds on this and is covered in our article on sections 60A to 62.
The proviso: when the right is gone
The proviso says the right conferred by the section must "not have been extinguished by act of the parties or by decree of a Court". In plain words, the right to redeem stays alive until either the parties themselves bring it to an end or a Court decree does so. The text does not list what such an act or decree might be. Section 67, which lets a mortgagee ask the Court for a decree barring redemption or for a sale, is explained in our article on foreclosure or sale.
Names of the right and the suit
The section gives two labels. The right is "a right to redeem", and a suit to enforce it is "a suit for redemption". These terms are used throughout the later sections, so they are worth remembering.
Reasonable notice before payment
One short paragraph protects the lender. Nothing in section 60 makes invalid a provision that, if the time fixed for payment of the principal money has been allowed to pass or no time has been fixed, the mortgagee is entitled to reasonable notice before payment or tender. So a mortgage-deed may contain a notice clause, and section 60 does not override it. The text does not say how long reasonable notice is; this is a matter for the deed and the facts.
Redemption of a share only
The last paragraph, headed "Redemption of portion of mortgaged property", is a limit. Nothing in the section entitles a person interested in a share only of the mortgaged property to redeem his own share alone by paying a proportionate part of the amount remaining due. The exception is where the mortgagee, or all the mortgagees if there are more than one, has or have acquired the share of a mortgagor, in whole or in part.
Example. Two brothers, Nikhil and Rohan, mortgaged a plot jointly. Rohan wants to clear only his half by paying half the dues. Under this paragraph he cannot do so as of right. If the lender had bought Nikhil's share, the exception would apply.
Practical points for borrowers and lenders
- Before paying: check the mortgage-deed for a notice clause and for how and where payment is to be made.
- At payment: ask in writing for the mortgage-deed, all property documents, and possession if the lender holds it.
- After payment: decide whether the property is to be re-transferred to you or to a person you name, or whether an acknowledgment of extinguishment will be executed, and note that the cost is yours.
- For lenders: keep the originals safe; clause (a) covers every document relating to the property in your possession or power.
Where the lender refuses to cooperate, the route the Act itself names is a suit for redemption.
Need help with redeeming a mortgage?
If you are repaying a loan and want the papers, possession and release dealt with correctly, or you are a lender preparing to hand them back, a short review of the mortgage-deed saves disputes later. Our team can look at your file through the loan against property service.
Key takeaways
- The right to redeem arises after the principal money has become due.
- On payment or tender the mortgagee must deliver documents, deliver possession if held, and re-transfer or acknowledge extinguishment.
- The mortgagor bears the cost of the re-transfer or acknowledgment.
- The right ends only by act of the parties or by a decree of a Court.
- A reasonable-notice clause in the deed is not overridden.
- A holder of a share cannot redeem his own share alone, except where the mortgagee has acquired a mortgagor's share.
Read next
- Section 58: kinds of mortgage
- Sections 60A to 62: third-party transfer, inspection and possession
- How to register a mortgage deed
- Mortgage types: simple, English, usufructuary
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.