Suits Relating to Mortgages (Section 32 of The Rajasthan Court Fees and Suits Valuation Act, 1961)

A mortgage is a contractual arrangement whereby an individual takes a loan by mortgaging property for security purposes. In case of disagreements pertaining to payments for mortgages or rights, legal action becomes necessary. Rule for court fees in the case of mortgages is provided under Section 32 of The Rajasthan Court Fees and Suits Valuation Act, 1961.

Suits for Recovering Mortgage Money

When a money case is filed for recovery of money payable on a mortgage, court fee is determined with reference to the amount of money claimed. For instance, if a bank is suing a borrower for ₹5,00,000, the court fee will be assessed on this amount.

Cases Involving Other Mortgage Holders

In the event that a second mortgage owner is involved, and they prefer to file their statement in the court asking for their dues in writing, then they have to pay a charge depending on how much they want. But, if they previously paid a fee in another lawsuit for the same claim, then they can take credit for the same.

Sale of Mortgaged Property and Claims on Sale Proceeds

If a property which is mortgaged is sold through court, any previous or subsequent mortgagee who wishes his share of sale proceeds will have to pay a court fee in proportion to his claim. But if he was already a party to the original suit and already paid a fee, he will not have to pay again

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Suits by Co-Mortgagees

Where several lenders (co-mortgagees) have granted a loan jointly and one of them initiates a case for recovery on behalf of all, the charge is computed on the total mortgage amount. If another lender (defendant) asserts a greater amount, they are required to pay another court charge on the excess. 

Cases Filed by Sub-Mortgagees

Sub-mortgagee is one who obtains a loan on a property that is already mortgaged. If a sub-mortgagee sues to recover their funds by foreclosing the interest of the mortgagee, the charge is computed on the sum sued for. If they want to foreclose the original property that was mortgaged as well as sue the original debtor, the charge is computed on the whole mortgage sum.

Suits for Redemption of Mortgage

When a borrower (mortgagor) sues to recover his or her property in settlement of the mortgage, the court fee depends on the amount of the mortgage stated in the suit. But if the court subsequently discovers that there is more money due, the borrower has to pay the additional fee before a final verdict is reached. In specific types of mortgages, such as usufructuary mortgages, where the lender generates income from the property, there may be an additional charge for accounting excess profits.

Suits for Foreclosure and Absolute Sale

When a mortgagee (lender) sues to take permanent possession of the property for non-payment (foreclosure) or to transform a conditional sale into one of absolute sale, the fee is computed on the total principal sum and interest claimed.

Section 32 provides that all parties in mortgage-related court cases pay court fees based on their claims and the relief sought. It averts unjust claims and ensures legal proceedings are appropriately valued.