Section 69:
Power of sale when valid.
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* * * * *
Notes:
1. Section 69 numbered as sub-section (1) of that section by Act 20 of 1929, s. 34.
2. Subs. by s. 34, ibid., for certain words.
3. The 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.
4. Ins. by Act 3 of 1885, s. 5.
5. The 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.
6. Ins. by Act 20 of 1929, s. 34.
7. The 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.
8. Subs. by Act 20 of 1929, s. 34, for is.
9. The word Karachi omitted by the A.O. 1948.
10. The 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.
11. Second paragraph numbered as sub-section (2) by Act 20 of 1929, s. 34.
12. The word 'But omitted by s. 34, ibid.
13. Clause (1) was lettered (a) by s. 34, ibid.
14. Clause (2) was lettered (b) by s. 34, ibid.
15. Third paragraph numbered as sub-section (3) by s. 34, ibid.
16. Fourth paragraph numbered as sub-section (4) by Act 20 of 1929, s. 34.
17. Subs. by s. 34, ibid., for fifth paragraph.
18. The last paragraph of this section omitted by s. 34, ibid.