Relevant particulars lacking:
(a) whether gift deed was executed after filing of the partition suit?
(b) Whether mortgage is effected during the pendency of the partition siot?
Irrelevant remark:
'collusion of bank official'
Answers:
Co-parcenary/ joint interest right is not affected by transfer of property effected by exclusion of one or more of the persons having such right/interest in the property. Section 52 of the Transfer of Property Act will safeguard any such interest during the pendency of the suit.
If the property or even a part of it presently stands in the name of any person, other than the parties to the suit, such person shall be impleaded as a defendant. Plaint can be amended by filing an application under Order VI Rule 17 of the CPC, to include in the prayer 'cancellation of the deed of transfer' by which the property has been transferred. Also, an application has to be filed for production of the 'certified copy' (obtainable from the sub-registrar) of such deed explaining reasons for non-production at the time of filing the suit.
When the suit is decreed, as it stands presently, it would theoretically invalidate the transfer of property to the extent of share therein of parties other than the transferor. Note that transferor has got a right to transfer his/her interest to any third party. So, it would cause multiplicity of proceedings and entail enormous expenditure of time,money and energy. Time may be even a decade.
Sub-Registrar has got no role to play. He need not be arraigned as a party. If you are interested in stopping further transfer of property, you have to file an application for temporary injunction against the present title holder, after impleading as a party to the suit. In spite of such temporary injunction, if transfer takes place, it can be got invalidated through court besides being cited for contempt of court.
From the bare facts given, no criminal intent is perceptible. In my opinion, it will be a mis-adventure to embark upon any criminal action either by coomplaint to police leading to an FIR (doubtful- police may acknowledge and say that it is civil in nature and also subject to court proceedings pending) or a Complaint Petition before the jurisctional magistrate, which will be a long-drawn, frustrating and in all probability, a futile exercise.
Mortgagee's right too is conditioned by the extent of valid interest held by the mortgagor and remaining interest, if any will be in accordance with the decree.
