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Mathew Mathew vs Alexander Muthalali on 23 March, 1973

12.The Hon'ble Kerala High Court in the decision reported in AIR 1973 Kerala 270 (Mathew Mathew vs. Alexander Muthalali) held that othi is an anomalous possessory mortgage and that the mortgagor is personally liable for the mortgage amount. While usufructuary mortgage does not impose personal liability on the mortgagor, a person who borrows money on othi is personally liable for the amount as in the case of hypothecation bond. In other words, all the elements of hypothecation bond are present in an othi transaction and in addition possession of property secured is given to the mortgagee, so that he may take the profit in lieu of interest. The term "othi" if it occurs in the document implies then it was a mortgage to which all the incidents of othi would have applied and no special covenant for repayment by the mortgagor is necessary.
Kerala High Court Cites 13 - Cited by 4 - Full Document
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