1[(1)] 2[3*** a mortgatee, 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, Muhammadan or Buddhist 4[or a member of any other race, sect, tribe or class from time to time specified in this behalf by 5[the State Government], in the Official Gazette;
(b) where 6[a power of sale without the intervention of the Court is expressly conferred on the mortgagee by the mortgage-deed, and] the mortgagee is 7[the Government];
(c) where 6[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 8[was, on the date of the execution of the mortgage -deed], situate within the towns of Calcutta, Madras, Bombay, 9[*** 10[or in any other town or area which the State Government may, by notification in the Official Gazette, specify' in this behalf.]
11[(2)] 12*** No such power shall be exercised unless and until--
13[(a)] notice in writing requiring payment of the principal money has been served on the mortgagor, or, 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
14[(b)] some interest under the mortgage amounting at least to five hundred repees is in arrear and unpaid for three months after becoming due.
15[(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 unauthorised, or improper, or irregular' exercise of the power shall have his remedy in damages against the person exercising the power.
16[(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, 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.
17[(5)] Nothing in this section or in section 69A applies to powers conferred before the first day of July, 1882.]
18* * * * *
1Section 69 numbered as sub-section (1) of that section by Act 20 of 1929, s. 34.
2Subs. by s. 34, ibid., for certain words.
3The words Notwithstanding anything contained in the Trustees and Mortagees Powers act, 1899 (28 of 1866) omitted by Act 48 of 1952, s. 3 and the Second Schedule.
4Ins. by Act 3 of 1885, s. 5.
5The words the L.G., with the previous sanction of the G. G. in C. successively adapted by the A.O. 1937 and the A.O. 1950 to read as above.
6Ins. by Act 20 of 1929, s. 34.
7The words the Secretary of State for India in Council successively amended by the A.O. 1937 and the A.O. 1950 to read as above.
8Subs. by Act 20 of 1929, s. 34, for is.
9The word Karachi omitted by the A.O. 1948.
10The words or Rangoon have been successively amended by Acts 6 of 1904, 11 of 1915, 20 of 1929, the A.O. 1937 and the A.O. 1950 to read as above.
11Second paragraph numbered as sub-section (2) by Act 20 of 1929, s. 34.
12The word 'But omitted by s. 34, ibid.
13Clause (1) was lettered (a) by s. 34, ibid.
14Clause (2) was lettered (b) by s. 34, ibid.
15Third paragraph numbered as sub-section (3) by s. 34, ibid.
16Fourth paragraph numbered as sub-section (4) by Act 20 of 1929, s. 34.
17Subs. by s. 34, ibid., for fifth paragraph.
18The last paragraph of this section omitted by s. 34, ibid.