69: Power of sale when valid

Power of sale when 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 the mortgagee is the Federal Government or a Provincial Government or a banking company as defined in the Banking Tribunals Ordinance, 1984 (LVIII of 1984).] (c) where [a power of sale without the intervention of the Court is expressly conferred on the mortgagee by the mortgage deed 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 exercised 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 authorize 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 unauthorized 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 mortgage money 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 authorised to give receipts for the proceeds of the sale thereof. [* * * * * * *] [* * * * * * *]

Related sections