The correct answer is (a).
Section 78 of the Transfer of Property Act, 1882 provides for the statutory duties of a mortgagee in possession. The section states that a mortgagee in possession is bound to:
- Keep the property in good repair;
- Pay all taxes, assessments, and other outgoings;
- Collect the rents and profits;
- Account for the rents and profits;
- Keep proper accounts;
- Not make any permanent improvements without the consent of the mortgagor;
- Not sell the property without the consent of the court.
Section 76 of the Transfer of Property Act, 1882 deals with the appointment of a receiver by the court. Section 77 of the Transfer of Property Act, 1882 deals with the rights of a mortgagee in possession. Section 79 of the Transfer of Property Act, 1882 deals with the sale of mortgaged property.
A mortgagee in possession is a person who has taken possession of mortgaged property after the mortgagor has defaulted on the mortgage. The mortgagee in possession is responsible for managing the property and collecting the rents and profits. The mortgagee in possession is also responsible for paying the taxes, assessments, and other outgoings on the property. The mortgagee in possession is not entitled to make any permanent improvements to the property without the consent of the mortgagor. The mortgagee in possession is also not entitled to sell the property without the consent of the court.