Mortgage deed
BIHARILAL LIYA
(Querist) 08 March 2012
This query is : Resolved
one of my clients owns Non Agricultural Land consisting of 10 plots. Earlier, he had obtained the entire agricultural farm and has then obtained the Order from the competent authority for conversion to Non-agricultural purpose and divided the said NA land into plots of smaller sizes as per approved plans and layouts. He has already mortgaged 4 of the plots say A B C & D with a bank by depositing the original title deeds with that particular bank. Now, he has approached other bank to grant financial assistance against the mortgage of 3 other plots say E, F, G. The second bank is of the opinion that since the original title deeds of the farm are already deposited with other bank, the MOE cannot be registered in their favour by deposit of only certified copies of those documents. Is the contention of the other bank correct. Also, search has been carried out in the records of the Sub-Registrar and Revenue Authorities and no lien or sale has been made for those particular plots. Is it possible to mortgage these properties by executing simple mortgage deed or an equitable mortgage can be executed even if the documents are with other bank (in the form of constructive deposit). Please suggest ur opinion. Any other suggestions would provide more light on the subject.
ajay sethi
(Expert) 08 March 2012
since title deeds of Na land for 10 plots are common the bank is justifed in not wantting to take any risk as these deeds have been deposited with another bank .
why dont you approach the other bank wherein you had mortgaged 4 other plots ?
since the said bank has already done due diligence of your property approach them for addtional finance
Shonee Kapoor
(Expert) 08 March 2012
Agree with Ld. Sethi.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
