Ganesh 13 November 2015

Mortgage money recovery

My relative executed a registered simple mortgage deed in 2009. The mortgaged property value is about 2 crores. The deed says mortgagor has borrowed 10 lacs from me and will repay the principal amount in 3 years with 1.5% monthly interest. But till today mortgagor did not pay any interest or principal. Upon request of mortgagor we have not filed any suit in the court.

Since simple mortgage is valid for 12 years, can I wait and file a suit just few months before validity period?

What will be the recovery amount (principal+interest) if I file a suit today?

Thanks for your time.

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G.L.N. Prasad (Retired employee.) 14 November 2015

But it is always proper to acquire A debt acknowledgment on admitting the debt and the borrower has to give it on a Revenue stamp of Rs.1/- and such things can not be post poned, as no one knows what happens to morrow.

The limitation period commences from date of last credit or acknowledgment .

When the terms are good, obtain it at the earliest.