Section 437: Mortgaged property to be possessed and enjoyed

1) The creditor shall possess and enjoy the property in mortgage with possession from the date of execution of the deed thereon or from a particular date, if any, specified in the deed, and the property in mortgage without possession within two years of the expiration of the date for repayment of the loan by the debtor.

2) If, for any reason, the creditor is not able to possess and enjoy such property within the period referred to in sub-section (1) or if the debtor does not allow, by any means, the creditor to possess and enjoy it, the creditor may institute a lawsuit in accordance with law for effecting the possession and enjoyment of such property.

3) If the creditor fails to possess and enjoy the property pursuant to sub-section (1) or to make a lawsuit for effecting its possession and enjoyment pursuant to sub-section (2), such a mortgage shall ipso facto be inoperative.

4) If the deed of a mortgage becomes inoperative pursuant to sub-section (3), the deed shall be equivalent to an unsecured bond (Kapali).