Sections 83-84 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.
If a lender will not accept repayment, or cannot be found, a mortgagor is not stuck. Section 83 lets him deposit the amount due in Court, and section 84 says when interest on the loan stops. This is explained as per the text of the Act consulted.
After the principal money has become due and before a suit for redemption is barred, the mortgagor, or any other person entitled to sue for redemption, may deposit the amount remaining due in Court to the mortgagee's account. The Court serves written notice on the mortgagee, who can take the money by a verified petition and by depositing the mortgage-deed and documents. Interest stops from the date of tender or, for a deposit without a prior tender, once the depositor has done all that is needed and notice has been served.
Source note and the repealed sections
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 83 begins "- -At any time" in the copy, which is a printing slip with a stray dash; the meaning is unaffected. Section 85 and the group "86 to 90" are printed only with repeal notes (the Code of Civil Procedure, 1908 (5 of 1908), section 156 and Schedule V) and are not explained here. The reader should check the current law for the corresponding provisions of that Code.
Section 83 works alongside the borrower's right in our article on Section 60, the right to redeem. If a lender is refusing or avoiding payment, a legal dispute resolution discussion can help you choose the next step.
Section 83: the deposit
Who and when. At any time after the principal money payable in respect of any mortgage has become due, and before a suit for redemption of the mortgaged property is barred, the mortgagor or any other person entitled to institute such a suit may deposit the amount remaining due on the mortgage. The words "payable in respect of any mortgage has become due" are in square brackets in the copy.
Where. In any Court in which he might have instituted the suit for redemption, to the account of the mortgagee.
How the mortgagee takes the money
- The Court causes written notice of the deposit to be served on the mortgagee.
- The mortgagee presents a petition, verified in the manner prescribed by law for the verification of plaints, stating the amount then due and his willingness to accept the money deposited in full discharge of it.
- He deposits in the same Court the mortgage-deed and all documents in his possession or power relating to the mortgaged property.
- He then applies for and receives the money, and the mortgage-deed and other documents are delivered to the mortgagor, or to the other person entitled.
Where the mortgagee is in possession
The Court must, before paying him the deposited amount, direct him to deliver possession to the mortgagor and, at the mortgagor's cost, either to re-transfer the property to the mortgagor or to a third person he directs, or to execute an acknowledgment in writing that any right in derogation of the mortgagor's interest has been extinguished. Where the mortgage was by a registered instrument, the acknowledgment must also be registered. This tracks section 60, so the two sections should be read together.
Section 84: when interest stops
| Situation | When interest on the principal ceases |
|---|---|
| Mortgagor tenders the amount | From the date of the tender |
| Mortgagor deposits without a previous tender | As soon as he has done all that has to be done by him to enable the mortgagee to take the amount out of Court, and the notice required by section 83 has been served on the mortgagee |
| Deposit made with no previous tender, then withdrawn in whole or in part | Interest on the principal is payable from the date of the withdrawal (the proviso) |
Saving for a notice clause. Nothing in section 84 or section 83 deprives the mortgagee of his right to interest where there is a contract that he shall be entitled to reasonable notice before payment or tender, and such notice has not been given before the tender or deposit. The closing words are in square brackets in the copy. The text does not say how much notice is reasonable.
Related steps: tender to agents and absent lenders
Section 102 deals with tender where the person to receive it lives elsewhere or cannot be found, including a deposit that has the effect of a tender. It is covered in our article on sections 101 to 104.
Worked example
Rajesh mortgaged his shop to a lender who has gone abroad and left no agent. The loan has fallen due and Rajesh wants to repay. He deposits the amount remaining due in the Court where he could sue for redemption, to the account of the lender. The Court serves written notice on the lender. Interest on the principal stops once Rajesh has done all that was needed for the lender to take the money out and the notice has been served. If the lender returns, files a verified petition stating the amount due and his willingness to accept the money in full discharge, and hands over the mortgage-deed and all documents, the Court pays him and delivers the documents to Rajesh. If the deed required reasonable notice before payment and Rajesh gave none, the lender keeps his right to interest.
Practical points
- Check the time limit: the deposit must be made before a suit for redemption is barred. The text does not state any period; for time limits, see limitation for suits.
- Calculate the amount carefully; the section speaks of "the amount remaining due".
- Keep proof of the deposit and of the Court's notice.
- Lenders: the Court will not pay you until you deposit the deed and documents, and, if you are in possession, direct delivery of possession.
- Do not withdraw a deposit lightly; the proviso restarts interest from the date of withdrawal.
- Court fees and other charges are not stated in this Act.
Need help with repaying or collecting through Court?
Whether you want to repay a lender who will not respond or you are the lender who has received notice of a deposit, the steps must follow the sections closely. Our legal dispute resolution team can go through the file with you.
Key takeaways
- A mortgagor, or another person entitled to sue for redemption, can deposit the amount due in Court before a redemption suit is barred.
- The Court serves written notice on the mortgagee, who takes the money on a verified petition and by depositing the deed and documents.
- If the mortgagee is in possession, the Court directs delivery of possession and re-transfer or acknowledgment before paying him.
- Interest stops on tender, or on deposit once the depositor has done what is needed and notice is served.
- A withdrawn deposit restarts interest from the date of withdrawal.
- A reasonable-notice clause in the deed is preserved.
Read next
- Section 60: right of the mortgagor to redeem
- Sections 91 and 92: who may redeem and subrogation
- Sections 101 to 104: no merger, notice and tender
- How to register a mortgage deed
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.