this is a project work that touches upon the issue of duties and liabilities of director of a company.
Audit of Current LiabilitiesFull description
This book is written by Shaykh'ul Islam Hudhrat Mawlana Mufti Hafiz Syed Dhiya'uddin al-Hanafi al-Naqshbandi al-Qadiri (Damat Barkatahum Aliyah) upon respecting parencts, particualrly when they rea...
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Respect dd
Liabilities of Mortgagor and Mortgagee in Respect of mortgage Introduction
A mort mortga gage ge is the the tran transfe sferr of an inter interest est in speci specifi ficc tran transfe sferr of an inte intere rest st in speci specifi ficc immo immove veab able le prop proper erty ty for for the the purp purpos osee of secur securin ing g an exis existi ting ng or futu future re debt debt,, or the the performance of an engagement which may give rise to a pecuniary liability. liability. The transferor is called a mortgagor and the transferee is called a mortgagee. The principal money and interest of which payment is secured for the time being are called the mortgage money and the instrument by which the transfer is called a mortgage deed .1 Now it is clear to us from the definition of mortgage provided in see 58 a! to be a mortgage there must be a transfer of an interest. There must be specific immoveable property intended to be mortgaged, the transfer must be made to secure the payment of a loan or to secure the performance of a contract. "uppose# A person fell in a situation of crying need of money, but he cannot manage it by only means. Then he can borrow it someone by promising to repay the money and to secure the repayment he can transfer his property as a mortgage. $ere security is needed to ensure the repayment of lend money. money.
Liabilities of the Mortgagor
%e &now that in the mortgage system the transferor is called a mortgagor and the transferee is called mortgagee. 'oth the mortgagor and the mortgage have some specific liability to success the purpose of the mortgage. (irst ) try to find out the liability of the mortgagor to bring a good end of the contract of mortgage between the mortgagor and the mortgagee. *ortgagor has some specific liability which are all grouped together in section +5 and ++ of the T act 188-. )f we see the covenant for title heading of section +5 of T Act 188-, it indicate an implied contract made by the mortgagor. 'y this implied contract he is ready to perform some specific liability impose upon him if there is no contract to the contrary. contrary. (rom the section +5a/ of T Act we &now a liability of mortgage is that he is not permitted to transfer that what he had not it is called covenant for title and it is similar to that of the seller under section 55-!. )f the mortgagor want to transfer something he must have interest over it. 1
"ec# 58a! of T Act 188-.
%ithout having interest in the professed property he cannot transfer that to other. The mortgagor must have the title to transfer the property. "o it is said that the mortgagee covenants his title and his power to deal with it. Defence of Title
"ection +5b! also impose a duty to the mortgagor and this duty is called defence of title when a mortgagor is in possession of the mortgaged property he is bound to defend his title at his own cost. $e should try his best to protect his title against the trespasser as mortgagee is not deprived his security. %hen mortgagee is in possession he is also bound to held him to defend title by supplying expenses if mortgagor is fail to supply cost and the mortgagee pays them out of his own poc&et, then this cost is added with the mortgage money.
Public Charge
"ection +5! impose a duty upon mortgagor to pay the public charge until he is in possession of the mortgaged property. )t is implied contract and it comes to an end with the extinction of the right of redemption. 'ut this duty is not terminate with the death of the mortgagor. After his death his heir, is under a liability to pay public charges. )f the mortgagor himself purchases the land of a revenue sale, the original mortgage is not extinguished and the liability to pay the revenue will continued. )f the mortgagor intentionally fail to pay and property is sold for arrears of revenue and he purchase the property. This does not terminate the mortgage rather still sub/ect to mortgage. )f mortgagor pay public charge he cannot claim against mortgagee as he spent it for his own benefit.
Payment of Rent
"ection +5d! deals with the liability of the mortgagor in leasehold property. The mortgagor has a implied contract to pay rents and to perform conditions of lease until the time of the mortgage if the mortgage property is leasehold. This covenant run with the mortgagor as long as the mortgagee is not in the possession, when mortgagee ta&es possession he is bound to pays rent, the liability of the mortgagor here extinguished upon the ta&ing possession by the mortgagee. Prior Mortgages -
'al 0rishna vs. ishwanath 1825! 12 'om 5-8.
"ection +5e! deals another liability of the mortgagor. There is an implied covenant that the mortgagor is bound to discharge all the prior mortgage debt for the purpose so that the subse3uent mortgagee is not deprived. )f the mortgagee deprived for the non4performance of this duty by the mortgagor he can sue for mortgage money under section +8.
Liability for waste
"ection ++ of the T Act 188- impose a duty upon the mortgagor not to commit any act which diminish the value of the property and so impair the security. $e is not liable for allow to destroy of the property he is not liable if he is not protect the property from destruction. $e is only liable when his act destroy the property. )f his act is in/urious to the mortgage property and if the security become insufficient by his act he is liable. %hen a mortgagor is in possession he is never liable to account for rent and profits received by him and may do all such acts as are referable to his 3ualified ownership and which are consistence with the maintenance of sufficient security for the mortgagee.
Liabilities of mortgagee
6i&e the mortgagor, in the system of mortgage the mortgagee has also some duty or liability. The liabilities of the mortgagee are deals in section 7+ of the T Act 188-. These liabilities arise only when the mortgagee enters into possession. These liabilities are classified under nine heads. They are following# 1! Management: )f the mortgagee ta&es possession of the property he is bound to act as a prudent owner in the management of the property. A mortgagee who is in the possession he is bound to cultivate ordinary crops that the land is capable of yielding. A mortgagee can ma&e a lease but not extending the term of mortgage. The lease extinguished on the redemption of mortgage. "o a mortgagee has a liability to manage the mortgage property as it is his own property. -! Collection of Rents and Profits: The second duty of the mortgagee in possession is that he must use his best endeavors to collect the rents and profits. )f he fails to collect highest rent it show that he cannot manage the property. $e should try is best to collect highest rent as this rent is deduct against his principle money. )f he appoint an agent to collect rents and profits he is liable for grass negligence by agent.
*ahabir vs. $aribans 125-! "..9 775 125-! ".: -2-.
! Payment of Revenue: The mortgagor is liable to pay be government revenue to save the property begin sold for areas. 'ut this duty transfer to mortgagee when he ta&es the possession of the property. $e is bound to pay revenue from the income of the property. )f he pays revenue from his poc&et he is entitle to add the money in mortgage. ;! Repairs: *ortgagor has a duty to repair the mortgage property if there is any surplus after deducting the revenue and public charge and the interest of the principle money. )f there is no surplus the liability for effecting repair does not arise, the liability is sub/ect to contract to the contrary between the parties. 5! aste: 6i&e the *ortgagor under section ++ and leasee under section 1<8, the mortgagee has a duty not to commit any act that is harmful for the property. $e cannot permitted to cut down the trees of the land which was already existed but he has right to do that as he planted them. +! Insurance: $e has the =uty to ma&e insurance of the property and to use the receiving insurance money in reinstating the property or reduct or discharge of the mortgage money according the direction of mortgagor. 7! !ccounts: The mortgagee in possession is bound to &eep clear fall and accurate accounts supported by vouchers. The 3uestion of account is not arise if there is a contract that the income is ta&en in lieu of the interest and principle money. 8! Deposit: After tendering mortgage money to the mortgagee or deposited in the court, the mortgagee must account for his receipts from the mortgaged property from the date of the tender. $e has no right to deduct any amount as an expenses incurred after such date in connection with the mortgaged property. 2! "ailure to perform any of the duties: *ortgagee is bound to perform all the duties imposed on him. $e is liable for loss if occur for the lac& of his prudency. )f the mortgagee fails to pay the public charges and the mortgagor pays to avert a sale, the mortgagor is entitled to credit for the amount.
