A mortgagor's unliquidated claim for damages against the original mortgagee cannot be set off against the mortgage debt to prevent a transferee mortgagee from exercising its power of sale. The authorities establishing that a transferee takes subject to the state of accounts between mortgagor and mortgagee are limited to liquidated claims and legal set-offs. Lodging caveats over mortgaged land has the same practical effect as seeking an injunction, and the Inglis principle requiring payment into court applies equally. However, Helman J's dissent raises the question whether summary judgment should extend to the mortgagor's underlying pecuniary claims, which may remain live issues particularly where sale proceeds are insufficient to discharge the mortgage debt.
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