Section 83, TPA — the substance

At any time after the principal money payable in respect of any mortgage has become due, and before a suit for redemption is barred, the mortgagor, or any other person entitled to institute such a suit, may deposit in any court in which he might have instituted the suit, to the account of the mortgagee, the amount remaining due on the mortgage.

The court then causes written notice of the deposit to be served on the mortgagee.

The mortgagee may, on presenting a verified petition stating the amount then due and his willingness to accept the money so deposited in full discharge, and on depositing in the same court the mortgage deed and all documents in his possession or power relating to the mortgaged property, apply for and receive the money; and the deed and documents are then delivered to the mortgagor or the person who made the deposit.

The money must have become due

The right arises only after the principal money is payable; a mortgagor cannot force an early redemption by depositing before the date fixed

A suit for redemption must not be barred

The right runs with the right to sue; once the suit is time-barred, the deposit avails nothing

Who may deposit

The mortgagor, or any other person entitled to institute a suit for redemption — the persons listed in section 91

Where

In any court in which he might have instituted the suit for redemption

How much

The whole amount remaining due. A deposit of part, or a deposit clogged with conditions, is not a compliance

What the mortgagee must do to take it

Present a verified petition stating the amount due and his willingness to accept the deposit in full discharge, and deposit the mortgage deed and all related documents in the same court

Section 84, TPA — the substance

When the mortgagor or other person entitled has tendered or deposited in court under section 83 the amount remaining due, interest on the principal money ceases —

from the date of the tender; or, in the case of a deposit where no previous tender was made, as soon as the mortgagor has done all that he has to do to enable the mortgagee to take the money out of court, and the notice required by section 83 has been served on the mortgagee.

Proviso — where the amount was deposited without a previous tender and the depositor afterwards withdraws it or any part of it, interest on the principal is payable again from the date of the withdrawal.

Nothing in sections 83 or 84 deprives the mortgagee of interest where there is a contract entitling him to reasonable notice before payment or tender, and that notice has not been given.

What it is

An offer of payment made to the mortgagee himself

Payment into court to the mortgagee's account under section 83

When interest ceases

From the date of the tender

When the depositor has done all he has to do, and the notice has been served

What it requires

An unconditional offer of the whole amount due, made at a proper time and place

The whole amount, in the proper court, followed by notice

If refused or not taken

Interest still ceases from the tender; the mortgagor should then deposit to keep the position clear

The money lies in court; the mortgagee may take it only on the terms the section lays down

Effect of withdrawal by the depositor

Not applicable

Interest runs again from the date of the withdrawal, where there had been no previous tender

The sequence in practice

One. The principal money falls due, and the mortgagor is ready to pay.

Two. He tenders the whole amount to the mortgagee. If the mortgagee accepts, the mortgage is redeemed under section 60. Interest stops from the date of the tender whether he accepts or not.

Three. If the tender is refused, or the mortgagee cannot be found, the mortgagor deposits the amount under section 83 in the court where he could have sued for redemption.

Four. The court serves notice. From the point at which the mortgagor has done everything on his side and the notice is served, interest ceases under section 84.

Five. The mortgagee may take the money out on filing his verified petition and depositing the mortgage deed and documents, which are then handed over to the mortgagor — and the mortgage is at an end.