TRANSFER OF PROPERTY

PROJECT SYNOPSIS
THE DOCTRINE OF SUBROGATION IN THE TRANSFER OF PROPERTY ACT

INTRODUCTIONSubrogation is a roman word which means substitution. It is the right of a person to stand
in the place of the creditor after paying off his liabilities. The doctrine of subrogation is based
on the principles of equity, justice and good conscience. The essence of the doctrine is that
the party who pays off a mortgage gets clothed with all the rights of the mortgage. The
Doctrine of subrogation in the Transfer of Property Act, 1882, has been laid down under
section 92, inserted after an amendment in the year 1929. Subrogation: Any of the persons
referred to in section 91 (other than the mortgagor) and any co-mortgagor shall, on redeeming
property subject to the mortgage, have, so far as regards redemption, foreclosure or sale of
such property, the same rights as the mortgagee whose mortgage he redeems may have
against the mortgagor or any other mortgagee.
There are 2 types of subrogationA) Legal Subrogation- Legal Subrogation takes place by operation of law and is based on
the principle of re-imbursement.
B) Conventional Subrogation- The conventional subrogation takes place where the
person paying off the mortgage-debt is a stranger and has interest to protect, but he
advances the money under an agreement that he would be subrogated to the rights and
mortgagee who is paid off.
The difference between subrogation under Section 92 of the Transfer of Property Act, 1882,
and Section 135A of the Act is that under Section 92 the subrogation results in the extinction
of the original mortgagee's rights and, therefore, the original mortgagee has no more rights
under the mortgage, whereas a subrogee under Section 135A acquires rights only to the
extent of his payment which may be less than the rights of the assured himself.

AIMS AND OBJECTIVES- The aim of this research is to understand the concept of
subrogation under the Transfer of property Act, 1882 and other property laws, the history of
the doctrine of subrogation and its development, also to critically analyze the rights and
liabilities of mortgagor and mortgagee under this doctrine. The researcher will also review
the recent case laws related to this doctrine.
RESERARCH QUESTIONS1) What are the various types of subrogation?
2) What are the rights and liabilities of the mortgagor and mortgagee under this
3)
4)
5)
6)

doctrine?
What are the rights and liabilities of co-mortgager and surety?
Whether this doctrine is applicable to both movable and immovable property?
What are the recent developments under this doctrine?
Who all can sue and may be sued for redemption?

RESEARCH METHODOLOGY The methodology involved is doctrinal approach. The

data collected is both primary and secondary.
SOURCES1)
2)
3)
4)

S.N Shukla, Transfer of Property Act ( 29th edn, ALA 2015)

Sir Dinshaw Mulla, Transfer of property Act ( 12th edn, Lexis Nexis 2015)
Vepa P. Sarathi, Law of Transfer of Property( 5th edn EBC 2015)
The Transfer of Property Act, 1882, Bare Act, Universal Law Publishing Co. Pvt.
Ltd.,

BY- UTSAV SAXENA

B.COM LLB
BC0140051