@ Joy: I have seen only one case of English mortgage. I am not aware whether the property was re-conveyed to the mortgagor or retained and sold by the mortgagee; when I saw the case the mortgagor was in default. The plus point of English mortgage is one does not have to file a mortgage suit if the mortgagor is in default. Of course rising stamp duty / court fees on conveyance has made it very expensive.
@ Abhijit CA: I have seen two such cases. In both cases the bank employees seem to have surreptitiously removed the title deeds, in collusion with the mortgagor borrower. In both cases the bank had gone for money suit, seeking attachment of the property. (In yet another case, the mortgagor borrower had repaid the loan as per schedule and the mortgagee banker had lost the title deed.)
@ Kolloru Krishna Murty: S58 of TPA defines mortgage and also describes six types of mortgages. English mortgage is defined as (S58(e)):English mortgage.—Where the mortgagor binds himself to repay the mortgage-money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage.
And s58(f) defines Mortgage by deposit of title-deeds.—Where a person in any of the following towns, namely, the towns of Calcutta, Madras, and Bombay, and in any other town which the State Government concerned may, by notification in the Official Gazette, specify in this behalf, delivers to a creditor or his agent documents of title to immoveable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title-deeds.. (This section was added in 1929; i.e. since 1929 it is a mortgage in law though still referred to as equitable mortgage.)
@ Sanjay Bansal & Ravi Dhadve: As noted above, in the definition the mortgagor has to deposit title deed for creation of a mortgage by deposit of title deeds. Courts have defined “title deed” as the document from which title is derived. The firm ABCD derived title from the sale deed that mentioned ABCD as the purchaser. XY got title as successor to ABCD and as such it has no title deeds to deposit. It is not much different from, say, I sole heir stepping into shoes of my deceased father will not be capable of creating mortgage by deposit of title deed if the deed named my father as the purchaser. Although I may have got the property mutated in my name in all revenue / city records, the fact is I have derived the title from succession (by being sole heir to the deceased) and not from any document; thus, so far I am concerned I have no title deeds to deposit. (Survey records are NOT title deeds. They record teh name in survey if teh holder has title i.e. title comes first and survey records come later)
This was the provision till about twenty-five years back. Since then I have not had to do anything with mortgages (thank God).