In Brief
The Supreme Court examined whether a mortgagor could claim a share in proceeds from a mortgaged property sold by the mortgagee bank for Rs. 10 lakhs, when the original loan was Rs. 15,000. The High Court had directed refund of Rs. 6.5 lakhs. The Court held that mortgagors have no legal right to sale proceeds after the bank becomes absolute owner via foreclosure. However, considering the respondent's severe personal hardship (paralysis, mentally ill children, poverty), the Court allowed partial relief and directed the bank to pay Rs. 5 lakh as ex-gratia assistance within eight weeks, distinguishing between strict legal entitlement and equitable relief."
The lawyer headnote and full judgment text are available to registered users.