All India Bar Examination (AIBE) 3-III Previous Year Question Papers with Answers

Practice Mode:
72.

Which one of the following is not a form of mortgage recognized by the laws governing transfer of property in India?

A: Equitable mortgage
B: Mortgage by conditional sale of goods.
C: Usufructory mortgage
D: English mortgage
E: Mortgage by way of deposit of title deeds.

The answer is: B

Explanation

The correct option is B: Mortgage by conditional sale of goods.

Explanation:

A mortgage is a transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan. According to Section 58 of the Transfer of Property Act, 1882, there are six types of mortgages recognized by the law, namely:

- Simple mortgage
- Mortgage by conditional sale
- Usufructuary mortgage
- English mortgage
- Mortgage by deposit of title deeds
- Anomalous mortgage

Each of these types of mortgages has different features and effects, which are explained in detail in the web search results. However, none of these types of mortgages involves the transfer of an interest in movable property, such as goods. Therefore, mortgage by conditional sale of goods is not a valid form of mortgage under the law governing transfer of property in India.