Acquisition of mortgaged property

Kani (Querist) 14 December 2021 This query is : Resolved
Part of land mortgaged to the bank has been acquired by the Government for National Highway.
Does this act of acquiring of land by other party invalidate the equitable mortgage. ?
Should the bank create new equitable mortgage or continue with the existing mortgage ?

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This discussion explores the implications of a government acquiring a portion of land that is subject to an equitable mortgage. It questions whether this acquisition invalidates the existing mortgage and whether the bank should create a new one or continue with the current arrangement. The consensus suggests that the bank should create an additional equitable mortgage, as acquisition typically occurs after mortgage redemption, and advises consulting a local lawyer for specific guidance.

kavksatyanarayana (Expert) 14 December 2021
How did the NHAi acquire the land when it is on the mortgage with the bank? be clear in your query.

Kani (Querist) 14 December 2021
Under the land acquisition act, permission was also given by both the bank and owner

kavksatyanarayana (Expert) 15 December 2021
If the Bank rules are permitted, then the bank may satisfy with the remaining mortgaged property.

SHIRISH PAWAR, 7738990900 (Expert) 15 December 2021
Hello,

In my opinion, the bank has to create an additional equitable mortgage.

Dr J C Vashista (Expert) 16 December 2021
NHAI shall acquire only after redemption of mortgage, recheck or consult a local prudent lawyer if it is not a hypothetical / academic / time pass topic.

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