Section 449: Creditor to be liable for loss and damage to property in mortgage

1) After the creation of the creditor’s possessory right in the property in mortgage, the creditor shall be liable for any kind of loss or damage, if any, caused to the property in mortgage.

2) In the event of any loss or damage to the property in mortgage pursuant to sub-section (1), the creditor shall so repair such property, at his or her cost, as to restore it into its original form.

3) Notwithstanding anything contained in sub-section (1), the creditor shall not be liable for any loss or damage to the property in mortgage caused by a disaster, and the creditor shall repair such loss or damage with the debtor’s consent in writing.

4) The debtor shall, while redeeming the property in mortgage, pay also the expenses incurred in the maintenance under sub-section (3), in addition to the loan borrowed from the creditor.