54.  Sale defined. 'Sale' is a transfer of ownership in exchange for a price paid or promised or part paid and part promised. Sale how made. Such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. In the case of tangible immovable property, of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immovable property takes place when the seller places the buyer, or such person as he directs in possession of the property. Contract for sale-A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property.  
55. Rights and liabilities of buyer and seller. In the absence of a contract to the contrary, the buyer and the seller of immovable property respectively are subject to the liabilities, and have the rights, mentioned in the rules next following, or such of them as are applicable to the property sold:- (1) The seller is bound:- (a) to disclose to buyer any material defect in the property [or in the seller's title thereto] of which the seller is, and the buyer is not, aware, and which the buyer could not with ordinary care discover; 
(b) to produce to the buyer on his request for examination all documents of title relating to the property which are in the seller's possession or power; (c) to answer to the best of his information all relevant questions put to him by the buyer in respect to the property or the title thereto; (d) on payment or tender of the amount due in respect of the price, to execute a proper conveyance of the property when the buyer tenders it to him for execution at a proper time and place; (e)  between the date of the contract of sale and the delivery of the property, to take as much care of the property and all documents of title relating thereto which are in his possession as an owner of ordinary prudence would take of such property and documents; (f)  to give, being so required, she buyer, or such person as he directs, such possession of the property as its nature admits; (g)  to pay all public charges and rent accrued due in respect of the property up to the date of the sale, the interest on all incumbrances on such property due on such date, and except where the property is sold subject to incumbrances, to discharge all incumbrances on the property then existing. (2)  The seller shall be deemed to contract with the buyer that the interest which the seller professes to transfer to the buyer subsists and that he has power to transfer the same: Provided that, there the sale is made by a person in a fiduciary character, he shall be deemed to contract with the buyer that the seller has done no act whereby the property is incumbered or whereby he is hinderd from transferring it. The benefit of the contract mentioned in this rule shall be annexed to, and shall go with, the interest of the transferee as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested. 
(3) Where the whole of purchase-money has been paid to the seller, he is also bound to deliver to the buyer all documents of title relating to  the property which are in the seller's possession or power: Provided that, (a) where the seller retains any part of the property comprised in such documents he is entitled to retain them all, and (b) where the whole of such property is sold to different buyers, the buyer of the lot of greatest value is entitled to such documents. But in case (a) the seller, and in case (b) the buyer, of the lot of greatest value, is bound, upon every reasonable request by the buyer, or by any of the other buyers, as the case may be, and at the cost of the person making die request, to produce the said documents and furnish such true copies thereof or extracts therefrom as he may require; and' in the mean time, the seller, or the buyer of the lot of greatest value, as the case may be, shall keep the said documents safe, uncancelled and undefaced, unless prevented from so doing by fire or other inevitable accident. (4) The seller is entitled:-- (a)  to the rents and profits of the property till the ownership thereof passes to the buyer; (b)  where the ownership of the property has passed to the buyer before payment of the whole of the purchase-money, to a charge upon the property in the hands of the buyer, ^any transferee without consideration or any transferee with notice of the non-payment], for the amount of the purchasemoney, or any part thereof remaining unpaid, and for interest on such amount or part [from the date on which possession has been delivered]. (5)  The buyer is bound:- (a)  to disclose to the seller any fact as to the nature or extent of the seller's interest in the property of which the buyer is aware but of which he has reason to believe that the seller is not aware, and which materially increases the value of such interest; (b) to pay or tender, at the time and place of completing the sale, the purchase-money to the seller or such person as he directs: provided that, where the property is sold free from 
incumbrances, the buyer may retain, out of the purchasemoney, the amount of any incumbrances on the property existing at the date of the sale, and shall pay the amount so retained to the persons entitled thereto; (c)  where the ownership of the property has 'passed to the buyer, to bear any loss arising from the destruction, injury or decrease in value of the property not caused by the seller; (d)  where the ownership of the property has passed to the buyer, as between himself and seller, to pay all public charges and rent which may become payable in respect of the property, the principal moneys due on any incumbrances subject to which the property is sold, and the interest-thereon afterwards accruing due. (6)  The buyer is entitled:- (a)  where the ownership of the property has passed to him, to the benefit of any improvement in, or increase in value of, the property, and to the rents and profits thereof; (b)  unless he has improperly declined to accept delivery of the property, to a charge on the property, as against the seller and all persons claiming under him, 4to the extent of the seller's, interest in the property for the amount of any purchase-money properly paid by the buyer, in anticipation of the delivery and for interest on such amount; and, when he properly declines to accept the delivery, also for the earnest (if any) and for the costs (if any) awarded to him of a suit to compel specific performance of the contract or to obtain a decree for its rescission. An omission to make such disclosures as are mentioned in this section, paragraph (1), clause (a), and paragraph (5)', clause (a), is fraudulent.  
56. Marshalling by subsequent purchaser. If the owner of two or more properties mortgages them to one person and -then sells one or more of the properties to another person, the buyer is, in the absence of a contract to the contrary, entitled to have the mortgage-debt satisfied out of the property or properties not sold to him, so far as the same will extend, 
but not so as to prejudice the rights of the mortgagee or persons claiming under him or of any other person who has for consideration acquired an interest in any of the properties].  Discharge of Incumbrances on Sale  
57.  Provision by Court for incumbrance and sale freed therefrom, (a) Where immovable property subject to any incumbrance, whether immediately payable or not, is sold by the Court or in execution of a decree, or out of Court, the Court may, if it thinks fit, on the application of any party to the sale, direct or allow payment into Court:;- (1)  in case of an annual or monthly sum charged on the property, or of a capital sum charged on a determinable interest in the property-of such amount as, when invested in securities of the [Federal Government], the Court considers will be sufficient, by means of the interest thereof, to keep down or otherwise provide for that charge; and (2)  in any other case of a capital sum charged on the propertyof the amount sufficient to meet the incumbrance and any interest due thereon. But in either case there shall also be paid into Court such additional amount as the Court considers will be sufficient to meet the contingency of further costs, expenses and interest and any other contingency, except depreciation of investments, not .exceeding one-tenth part of the original amount to be paid in, unless the Court for special reasons (which it shall record) thinks fit to require a larger additional amount. (b)  Thereupon the Court may, if it thinks fit, and after notice to the incumbrancer, unless the Court, for reasons to be recorded in writing, thinks fit to dispense with such notice, declare the property to be freed from the incumbrance, and make any order for conveyance, or vesting order, proper for giving effect to the sale, and give directions for the retention and investment of the money in Court. (c)  After notice served on the persons interested in or entitled to the money or fund in Court, the Court may direct payment or transfer thereof to the persons entitled to receive or give a discharge for the same, 
and generally may give directions respecting the application or distribution of the capital or income thereof. (d)  An appeal shall lie from any declaration, order or direction under this section as if the same were a decree. (e)  In this section 'Court' means  (1)  a High Court in the exercise of the ordinary or extraordinary original civil jurisdiction, (2)  the Court of a District Judge within the local limits of whose jurisdiction the property or any part thereof is situate, (3) any other Court which the ^Provincial Government] may, from time to time, by notification in the official Gazette, declare to be competent to exercise the jurisdiction conferred by this section.   
  
CHAPTER IV OF MORTGAGES OF IMMOVABLE PROPERTY  AND CHARGES  
                 58.  'Mortgage' 'mortgagor' 'mortgagee,' 'mortgage-money' and 'mortgage' defined,  (a)  A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt or the performance of an engagement which may give rise to a pecuniary liability. The transferor is called a mortgagor, the transferee a mortgagee; the principal money and interest of which payment is secured for the time being are called the mortgage-money and the instrument (if any) by which the transfer is effected is called a mortgage-deed. (b)  Simple mortgage. Where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to gay the mortgage money, and agrees expressly or impliedly, that, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, so far as may be necessary, in payment of the mortgagemoney, the transaction is called a simple mortgage and the mortgagee a simple mortgagee. (c)  Mortgage by conditional sale. Where the mortgagor ostensibly sells the mortgaged property: on condition that on default of payment of the mortgage money on a certain date the sale shall become absolute; or on condition not on such payment being made the sale shall become void, or on condition that on such payment being made the buyer shall transfer the property to the seller,  
the transaction is called a mortgage by conditional sale and the mortgagee a mortgagee by conditional sale: [Provided that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect the sale]. (d) Usufructurary mortgage. Where the mortgagor delivers possession [or expressly or by implication binds himself to deliver possession] of the mortgaged property to mortgagee, and authorizes him to retain such possession until payment of the mortgagee-money, and to receive the rents and profits accruing from the property '[or any part of such rents and profits and to appropriate the same] -in lieu of interest, or in payment of the mortgage-money, '[or] part in lieu of interest or partly in payment of the mortgage-money, the transaction is called a usufructuary mortgage and the mortgagee a usufructuary mortgagee. (e)  English mortgage. Where the mortgagor binds himself to repay the mortgage-money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage. (f)  Mortgage by deposit of tine-deeds. Where a person in [the town of] Karachi, and in any other town which the ''[Provincial Government] concerned may, by notification in the [official Gazette], specify in this behalf, delivers to a creditor or his agent documents of title to immovable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title-deeds. (g)  Anomalous mortgage. A mortgage which is not a simple mortgage, a mortgage by conditional sale, a usufructuary mortgage, an English mortgage or a mortgage by deposit of title-deeds within the meaning of this section is called an anomalous mortgage.]  
59.  Mortgage when to be by assurance. Where the principal money secured is one hundred rupees or upwards, a mortgage [other than a mortgage by deposit of title-deeds] can be effected only by the registered instrument signed by the mortgagor and attested by at least two witnesses. 
Where the principal money secured is less than one hundred rupees, a mortgage may be effected either by [a registered instrument] signed and attested as aforesaid, or (except in the case of a simple mortgage) by delivery of the property.   
59-A. References to mortgagors and mortgagees to include persons deriving title from them. Unless otherwise expressly provided, references in this Chapter to mortgagors and mortgagees shall be deemed to include references to persons deriving title from them respectively.  Rights and Liabilities of Mortgagor 60.  Right of mortgagor to redeem.-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 mortgagee-money, to require the mortgage (a) to deliver ^to the mortgagor the mortgagedeed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee, (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to mortgagor, and (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and (where the mortgage has been effected by a registered instrument) to have registered an acknowledgment in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished: Provided that the right conferred by this section has not been extinguished by the act of the parties or by [decree] of a Court. The right conferred by this section is called a right to redeem and a suit to enforce it is called a suit for redemption. Nothing in this section shall be deemed to render invalid any provision to the effect that, if the time fixed for payment of the principal money has been allowed to pass or no such time has been fixed, the mortgagee shall be entitled to reasonable notice before payment of tender of such money.  
Redemption of portion of mortgaged property. Nothing in this section shall entitle a person interested in a share only of the mortgaged property to redeem his own share only, on payment of a proportionate part of the 
amount remaining due on the mortgage, except [only] where a mortgagee, or, if there are more mortgagees than one, all such mortgagees, has or have acquired, in whole or in part, the share of a mortgagor.  
60-A Obligation to transfer to third party instead of retransference to mortgagor. (1) Where a mortgagor is entitled to redemption, then, on the fulfilment of any conditions on the fulfilment of which he would be entitled to require a re-transfer, he may require the mortgagee, instead of re-transferring the property, to assign the mortgagedebt and transfer the mortgaged property to such third person as the mortgagor may direct; and the mortgagee shall be bound to assign and transfer accordingly. (2)  The rights conferred by this section belong to and may be enforced by the mortgagor or by any encumbrancer notwithstanding an intermediate encumbrance; but the requisition of any encumbrancer shall prevail over a requisition of the mortgagor and, as between encumbrancers, the requisition of a prior encumbrancer shall prevail over that of a subsequent encumbrancer. (3) The provisions of this section do not apply in the case of a mortgagee who is or has been in possession.  
60-B  Right to inspection and production of documents. A mortgagor, as long as his right of redemption subsists, shall be entitled at all reasonable times at his request and at his own cost, and on payment of the mortgagee's costs and expenses in this behalf, to inspect and make copies or abstract, of, or extracts from, documents of title relating to the mortgaged property which are in the custody or power of the mortgagee.   
 [61.  Right to redeem separately or simultaneously. A mortgagor, who has executed two or more mortgages in favour of the same mortgagee shall, in the absence of a contract to the contrary, when the principal money of any two or more of the mortgages has become due, be entitled to redeem any one such mortgage separately, or any two or more of such mortgages together.]  
62.  Right of usufructuary mortgagor to recover possession. In the case of a usufructuary mortgage, the mortgagor has right to recover possession of the property [together with the mortgage-deed and all 
documents relating to the mortgaged property which are in the possession or power of the mortgagee], - (2)  Where any such improvement was effected at the cost of the mortgagee and was necessary to preserve the property from destruction or deterioration or was necessary to prevent the security from becoming insufficient, or was made in compliance with the lawful order of any public servant or public authority, the mortgagor shall, in the absence of a contract to the contrary, be liable to pay the proper cost thereof as an addition to the principal money with interest at the same rate as is payable on the principal, or, where no such rate is fixed, at the rate of nine per cent per annum, and the profits, if any, accruing by reason of the improvement shall be credited to the mortgagor.]  
63.  Accession to mortgaged property. Where mortgaged property in possession of the mortgagee has, during the continuance of the mortgage, received any accession, the mortgagor, upon redemption, shall, in the absence of a contract to the contrary, be entitled as against the mortgagee to such accession. Accession acquired in virtue of transferred ownership. Where such accession has been acquired at the expense of the mortgagee, and is capable of separate possession or enjoyment without detriment to the principal property, the mortgagor desiring to take the accession must pay to the mortgagee the expense of acquiring it. If such separate possession or enjoyment is not possible, the accession must be delivered with the property; the mortgagor being liable, in the case of an acquisition necessary to preserve the property from destruction, forfeiture or sale; or made with his assent, to pay the proper cost thereof, as an addition to the principal money, [with interest at the same rate as is payable on the principal, where no such rate is fixed, at the rate of nine per cent per annum]. In the case last mentioned the profits, if any, arising from the accession shall be credited to the mortgagor. Where the mortgage is usufructuary and the accession has been acquired at the expense of the mortgagee, the profits, if any, arising from the accession shall, in the absence of a contract to the contrary, be set off against interest, if any, payable on the money so expended. 
 63-A.  Improvements to mortgaged property. (1) Where mortgaged property in possession of the mortgagee has during the continuance of the mortgage, been improved, the mortgagor, upon redemption, shall, in the absence of a contract to the contrary, be entitled to the improvement; and the mortgagor shall not, save only in cases provided for in sub-section (2), be liable to pay the cost thereof. (a)  where the mortgagee is authorized to pay himself the mortgage-money from the rents and profits of the property. When such money is paid ; (b)  where the mortgagee is authorized to pay himself from such rents and profits '[or any part thereof a part only of the mortgage-money] when the term, if any, prescribed for the payment of the mortgage-money has expired and the mortgagor pays or tenders to the mortgagee [the mortgagemoney or the balance thereof] or deposits it in Court as hereinafter provided. 64.  Renewal of mortgaged lease. Where the mortgaged property is a lease, and the mortgagee obtains a renewal of the lease, the mortgagor, upon redemption, shall, in the absence of a contract by him to the contrary, have the benefit of the new lease.  
65.  Implied contracts by mortgagor. In the absence of a contract to the contrary, the mortgagee shall be deemed to contract with the mortgagee:- (a)  that the interest which the mortgagor professes to transfer to the mortgagor subsists, and the mortgagor has power to transfer the same; (b)  that the mortgagor will defend, or if the mortgagee 1-e in the possession of the mortgaged property, enable him to defend, the mortgagor', title thereto ; (c)  that the mortgagor will, so long as the mortgagee is not m possession of the mortgaged property, pay all, public charges accruing due in respect ;of the property ; (d)  and, where the mortgaged property is a lease, that the rent payable under the lease, the conditions contained therein, 
and the contracts binding on the lessee have been paid, performed and observed down to the commencement of the mortgage: and that the mortgagor will, so long as the security exists and the mortgagee is not in possession of the mortgaged property, pay the rent reserved by the lease, or, if the lease be renewed, the renewed lease, perform the conditions contained therein and observe the contracts binding on lessee, and indemnify the mortgagee against all claims sustained by reason of the non-payment of (he said rent or the non-performance or non-observance of the said conditions and contracts ; (e) and, where the mortgage is a second or subsequent incumbrance on the property, that the mortgagor will pay the interest from time to time accruing due on such prior incumbrance as and when it becomes due, and will at the proper time discharge the principal money due on such prior incumbrance. The benefit of the contracts mentioned in this section shall be annexed to and shall go with she interest of the mortgagee as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested.  
 [65A.  Mortgagor's power to lease. (1) Subject to the provisions of sub-section (2) a mortgagor, while lawfully in possession of the mortgaged property, shall have power to make leases thereof which shall be binding on the mortgagee. (2) (a)  Every such lease shall be such as would be made in the ordinary course of management of the property concerned, and in accordance with any local law, custom or usage. (b)  Every such lease shall reserve the best rent that can reasonably obtained, and no premium shall be paid or promised and no rent shall be payable in advance. (c)  No such lease shall contain a covenant for renewal. (d)  Every such lease shall take effect from a date not later than six months from the date on which it is made. 
(e)  In the case of a lease of buildings, whether leased with or without the land on which they stand, the duration of the lease shall in no case exceed three years, and the lease shall contain a covenant for payment of the rent and a condition of re-entry on the rent not being paid within a time therein specified. (3)  The provisions of sub-section (1) apply only if and as far as a contrary intention is not expressed in the mortgage-deed; and the provisions of sub-section (2) may be varied or extended by the mortgagedeed and, as so varied and extended, shall, as far as may be, operate 'in like manner and with all like incidents, effects and consequences, as if such variations or extensions were contained in that sub-section.]  
66.  Waste by mortgagor in possession. A mortgagor in possession of the mortgaged property is not liable to the mortgagee for allowing the property to deteriorate; but he must not commit any act which is destructive or permanently injurious thereto, if the security is insufficient or will be rendered insufficient by such act. Explanation. A security is insufficient within the meaning of this section unless the value of the mortgaged property exceeds by one-third, or, if consisting of buildings, exceeds by one-half, the amount for the time being due on the mortgage.  
Rights and Liabilities of Mortgagee  
67.  Right to foreclosure or sale. In me absence of a contract to contrary, the mortgagee has at any time after the mortgage-money has become due to him, and before a decree has been made for the redemption of the mortgaged property, or the mortgage-money has been paid or deposited as hereinafter provided, a right to obtain from the Court a decree that the mortgagor shall be absolutely debarred of his right to redeem the property, or ''[a decree] that the property be sold. A suit to obtain '[a decree] that a mortgagor shall be absolutely debarred of his right to redeem the mortgaged property is called a suit for foreclosure. 
Nothing in this section shall be deemed: [(a)  to authorize any mortgagee, other than a mortgagee by conditional sale or a mortgagee under an anomalous mortgage by the terms of which he is entitled to foreclose, to institute a suit for foreclosure, or an usufructuary mortgagee as such or mortgagee by conditional sale as such, to institute a suit for sale ; or (b)  to authorize a mortgagor who holds the mortgagee's right as his trustee or-legal representative, and who may sue for a sale of the property, to institute a suit for foreclosure ; or (c)  to authorize the mortgagee of a railway, canal or other work in the maintenance of which the public are interested, to institute a suit for foreclosure or sale ; or (d)  to authorize a person interested in part only of the mortgage-money to institute a suit relating only to a corresponding part of the mortgaged property, unless the mortgagees have, with the consent of the mortgagor, severed their interests under the mortgage.  
 [67-A. Mortgagee when bound to bring one suit on several mortgages. A mortgagee who holds two or more mortgages executed by the same mortgagor in respect of each of which he had a right to obtain the same kind of decree under section 67, and who sues to obtain such decree on anyone of the mortgages, shall, in the absence of a contract to the contrary, be bound to sue on all the mortgages in respect of which the mortgage-money has become due.   
68.  Right to sue for mortgage-money. (1) The mortgagee has a right to sue for the mortgage-money in the following cases and no others, namely:- (a)  where the mortgagor binds himself to repay the same; (b)  where by any cause other than the wrongful act or default of the mortgagor or mortgagee, the mortgaged property is wholly or partially destroyed or the security is rendered insufficient within the meaning of section 66, and the mortgagee has given the mortgagor a reasonable 
opportunity of providing further security enough to render the whole security sufficient, and the mortgagor has failed to do so; (c)  where the mortgagee is deprived of the whole or part of his security by or in consequence of the wrongful act or default of the mortgagor; (d)  where the mortgagee being entitled to possession of the mortgaged property, the mortgagor fails to deliver the same to him, or to secure the possession thereof to him without disturbance by the mortgagor or any person claiming under a title superior to that of the mortgagor: Provided that, in the case referred to in the clause (a), transferee from the mortgagor or from his legal representative shall not be liable to be sued for the mortgage-money. (2)  Where a suit is brought under clause (a) or clause (b) of subsection (1), the Court may, at its discretion, stay the suit and all proceedings therein, notwithstanding any contract to the contrary, until the mortgagee has exhausted all his available remedies against the mortgaged property or what remains of it, unless the mortgagee abandons his security and, if necessary, re-transfers the mortgaged property.  
69.  Power of sale valid. (1)  A mortgagee, or any person acting on his behalf, shall, subject to the provisions of this section, have power to sell or concur in selling the mortgaged property, or any part thereof, in default of payment of the mortgage-money, without the intervention of the Court, in the following cases and in no others, namely:- (a)  where the mortgage is an English mortgage, and neither the mortgagor nor the mortgagee is a Hindu, [Muslim] or Buddhist [or a member of any other race, sect, tribe or class from time to time specified in this behalf by '[the Provincial Government] in the [official Gazette] ; (b)  where [a power of sale without the intervention of the Court is expressly conferred on the mortgagee by the mortgage deed and] the mortgagee is [the Government] [or a Scheduled Bank as defined in section 2 of the State Bank of Pakistan Act, 1956 (XXIII of 1956) ; 
(c)  where a [power of sale without the intervention of the Court is expressly conferred on the mortgagee by the mortgagedeed and] the mortgaged property or any part thereof [was, on the date of the execution of the mortgage-deed], situate within the [town of] Karachi, or in any other town [or area] which the [Provincial Government] may, by notification in the [official Gazette], specify in this behalf. (2)  [A power under sub-section (1) shall not be exerciser unless and until:. (a)  notice in writing requiring payment of the principal money has been served on the mortgagor, or on one of several mortgagors, and default has been made in payment of the principal money, or of part thereof, for three months after such service ; or (b) some interest under the mortgage amounting at least to five hundred rupees is in arrear and unpaid for three months after becoming due . Provided that the power of a Scheduled Bank under clause (b) of sub-section (1) shall further be subject to such conditions as may be prescribed in this behalf by notification in the official Gazette by the [Federal Government] in consultation with the State Bank of Pakistan. (3) When a sale has been made in professed exercise of such a power, the title of the purchaser shall not be impeachable on the ground that no case had arisen to authorise the sale, or that due notice was not given or that the power was otherwise improperly or irregularly exercised; but any person damnified by an unauthorised or improper or irregular exercise of the power shall have his remedy in damages against the person exercising the power. (4) The money which is received by the mortgagee, arising from the sale, after discharge of prior incumbrances, if any, to which the sale is not made subject, or after payment into Court under section 57 of a sum to meet any prior incumbrance, shall, in the absence of a contract to the contrary, be held by him, in trust to be applied by him first, in payment of all costs, charges and expenses properly incurred by him as incident to the sale or any attempted sale; and, secondly, in discharge of the mortgagemoney and costs and other money, if any, due under the mortgage ; and 
the residue of the money so received shall be paid to the person entitled to the mortgaged property, or authorized to give receipts for the proceeds of the sale thereof.  
69-A.  Appointment of receiver. (1) A mortgagee having the right to exercise a power of sale under section 69 shall, subject, to the provisions of sub-section (2), be entitled to appoint, by writing signed by him or on his behalf, a receiver of the income of the mortgaged property or any part thereof. (2)  Any person who has been named in the mortgage-deed and is willing and able to act as receiver may be appointed by the mortgagee. If no person has been so named, or if all persons named are unable or unwilling to act, or are dead, the mortgagee may appoint any person to whose appointment the mortgagor agrees; failing such agreement, the mortgagee shall be entitled to apply to the Court for the appointment of a receiver, and any person appointed by the Court shall be deemed to have been duly appointed by the mortgagee. A receiver may at any time be removed by writing signed by or on behalf of the mortgagee and the mortgagor, or by the Court on application made by either party and on due cause shown. A vacancy In the office of receiver may be filled .in accordance with the provisions of this sub-section. (3)  A receiver appointed under the powers conferred by this section shall be deemed to be the agent of the mortgagor; and the mortgagor shall be solely responsible for the receiver's acts or defaults, unless the mortgage-deed otherwise provides or unless such acts or defaults are due to the improper intervention of the mortgagee. (4)  The receiver shall-have power to demand and recover all the income of which he is appointed receiver, by suit, execution or otherwise, in the name either of the mortgagor or of the mortgagee to the full extent of the interest which the mortgagor could dispose of, and give valid receipts accordingly for the same, and to exercise any powers which may have been delegated to him by the mortgagee in accordance with the provisions of this section. 
(5)  A person paying money to the receiver shall not be concerned to inquire if the appointment of the receiver was valid or not. (6)  The receiver shall be entitled to retain out of any money received by him for his remuneration, and in satisfaction of all costs, charges, and expenses incurred by him as receiver, a commission at such rate not exceeding five per cent on the gross amount of all money received as is specified in his appointment, and, if no rate is so specified then at the rate of five per cent on that gross amount, or at such other rate as the Court thinks fit to allow, on application made by him for the purpose. (7)  The receiver shall, if so directed in writing by the mortgagee, insure to the extent, if any, to which the mortgagee might have insured, and keep insured against loss or damage by fire, out of the money received by him, the mortgaged property or any part thereof being of an insurable nature. (8)  Subject to the provisions of this Act as to the application of insurance money, the receiver shall apply all money received by him as follows, namely:- (i)  in discharge of all rents, taxes, land revenue, rates and outgoings whatever affecting the mortgaged property; (ii) in keeping down all annual sums or other payments, and the interest on all principal sums, having priority to the mortgage in right whereof he is receiver ; (iii) in payment of his commission, and of the premiums on fire, life or other insurances, if any, properly payable under the mortgage-deed or under this Act, and the cost of executing necessary or proper repairs directed in writing by the mortgagee ; (iv) in payment of the interest falling due under the mortgage; (v)  in or towards discharge of the principal money, if so directed in writing by the mortgagee ; and shall pay the residue, if any, of the money received by him to the person who, but for the possession of the receiver, would have been entitled to receive the income of which he is appointed receiver, or who is otherwise entitled to the mortgaged property. 
(9)  The provisions of sub-section (1) apply only if and as far as contrary intention is not expressed in the mortgage-deed; and the provisions of sub-sections (3) to (8) inclusive may be varied or extended by the mortgage-deed, and, as so varied or extended, shall, as far as may be, operate in like manner and with all the like incidents, effects and consequences, as if such variations or extensions were contained in the said sub-sections. (10)  Application may be made, without the institution of a suit, to the Court for its opinion, advice or direction on any present question respecting the management or administration of the mortgaged property, other than questions of difficulty or importance not proper in the opinion of the Court for summary disposal. A copy of such application shall be served upon, and the hearing thereof may be attended by, such of the persons interested in the application as the Court may think fit. The costs of every application under this sub-section shall be in the discretion of the Court. (11)  In this section, 'the Court' means the Court which would have jurisdiction in a suit to enforce the mortgage.  
70.  Accession to mortgaged property. If after the date of a mortgage, any accession is made to the mortgaged property, the mortgagee, in the absence of a contract to the contrary, shall, for the purposes of the security, be entitled to such accession. Illustrations (a)  A mortgages to B a certain field bordering on a river. The field is increased by alluvion. For the purposes of his security, B is entitled to the increase. (b)  A mortgages a certain plot of building land to B and afterwards erects a house on the plot. For the purposes of this security B is entitled to the house as well as the plot.  
71.  Renewal of mortgaged lease. When the mortgaged property is a lease and the mortgagor obtains a renewal of the lease, the mortgagee in the absence of a contract to the contrary, shall, for the purposes of the security, be entitled to the new lease.   
72.  Rights of mortgagee in possession. [A mortgagee] may spend such money as is necessary :-- (a) Omitted (b) for the preservation of the mortgaged property] from destruction, forfeiture or sale ; (c) for supporting the mortgagor's title to property; (d)  for making his own title thereto good against the mortgagor; and (e)  when the mortgaged property is a renewable lease-hold, for the renewal of the lease ; and may, in the absence of a contract to the contrary, add such money to the principal money, at the rate of interest payable on principal, and where no such rate is fixed, at the rate of nine per cent per annum: [Provided that the expenditure of money by the mortgagee under clause (b) or clause (c) shall not be deemed to be necessary unless the mortgagor has been called upon and has failed to take proper and timely steps to preserve the property or to support the title]. When the property is by its nature insurable, the mortgagee may also, in the absence of a contract to the contrary, insure and keep insured against loss or damage by fire the whole or any part of such property; and the premiums paid for any such insurance shall be padded to the principal money with interest at the same rate as is payable on the principal money or, where no such rate is fixed, at the rate of nine per cent per annum]. But the amount of such insurance shall not exceed the amount specified in this behalf in the mortgage-deed or (if no such amount is therein specified) two-thirds of the amount that would be required in case of total destruction, to reinstate the property insured. Nothing in this section shall be deemed to authorize the mortgagee to insure when an insurance of the property is kept up by or on behalf of the mortgagor to the amount in which the mortgagee is hereby authorized to insure.   
 [73.  Right to proceeds of revenue sale or compensation on acquisition. (1) Where the mortgaged property or any part thereof or any interest therein is sold owing to failure to pay arrears of revenue or other 
charges of a public nature or rent due in respect of such property, and such failure did not arise from any default of the mortgagee, the mortgagee shall be entitled to claim payment of the mortgage-money in whole or in part, out of any surplus of the sale-proceeds remaining after payment of the arrears and of all charges and deductions directed by law. (2)  Where the mortgaged property or any part thereof or any interest therein is acquired under the Land Acquisition Act, 1894 (I of 1894), or any other enactment for the time being in force providing for the compulsory acquisition of immovable property, the mortgagee shall be entitled to claim payment of the mortgage-money, in whole or in part, out of the amount due to the mortgagor as compensation. (3)  Such claims shall prevail against all other claims except those of prior encumbrances, and may be enforced notwithstanding that the principal money on the mortgage has not become due].