Validity of equitable mortgage created in an un notified town and its enforceability
LEKSHMI
(Querist) 21 January 2017
This query is : Resolved
As regards creation of equitable mortgage (Section 58 (f) of Transfer of Property Act), it is not legally essential that the property, offered as a security, should be located in a notified town. The legal requirement is that the title deeds should be deposited with the lender in a notified town irrespective of the location of the property. What if the the title deeds accepted/deposited in an un-notified town but kept at the notified town, has the equitable mortgage come into being and the transaction legally valid ? If not what can be done to make the equitable mortgage so created legally enforceable
Rajendra K Goyal
(Expert) 21 January 2017
Academic query.
State material facts of the problem if any.
How are you concerned / related with the query?
Looks like examination question.
J K Agrawal
(Expert) 22 January 2017
Deposit of title deed in in notified town is not valid but if the memo is registered, it creates an estoppel.
Keeping of document is no germen, it is 'delivery with intention to create mortgage' in Notified Town only.
Dr J C Vashista
(Expert) 28 January 2017
Well advised by expert Mr. J K Agarwal, I agree.
