Transfer of Property Act, 1882

DISCHARGE OF ENCUMBRANCES ON SALE

Provision by court for encumbrances and sale freed therefrom

57. (a) Where immovable property subject to any encumbrance , whether immediately payable or not, is sold by the court or in execution of a decree, or out of court, the court may, if it thinks fit, on the application of any party to the sale, direct or allow payment into court,-

(1)	-	in case of an annual or monthly sum charged on the property, or of a capital sum charged on a determinable interest in the property- of such amount as, when invested in securities of the Central Government, the court considers will be sufficient, by means of the interest thereof, to keep down or otherwise provide for that charge, and
(2)	-	in any other case of a capital sum charged on the property- of the amount sufficient to meet the encumbrance and any interest due thereon.

But in either case there shall also be paid into court such additional amount as the court considers will be sufficient to meet the contingency of further costs, expenses and interest, and any other contingency, except depreciation of investments, not exceeding one-tenth part of the original amount to be paid in, unless the court for special reasons (which it shall record) thinks fit to require a larger additional amount.

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