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raja (business)     05 March 2011

defective mortgage

    Defects in Equitable Mortgage created by the Bank


Transfer of Property Act Section 58 ( f )

Definition of Mortgage By Deposit Of Title Deeds / Equitable Mortgage

Where a person in any of the following towns, namely, the towns of Calcutta, Madras and Bombay and in any other town which the State Government concerned may by notification in the Official Gazette, specify in this behalf, delivers to a creditor or his agent documents of title to immovable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title deeds.

To create a valid mortgage by deposit of title deeds, there must be a delivery of the title deeds relating to an immovable property by the debtor to a creditor or his agent in a notified town with the intention to create a security thereon.



 bank has taken allotment letter and created mortgage.pls advise mortgage is valid or not.

The Allotment Letter issued by SEEPZ is not a ‘title deed’.

For creating equitable  mortgage, delivery of title deeds is necessary. If no title deeds are delivered, equitable mortgage created is invalid.


 11 Replies

pratik (self working)     05 March 2011

No Becasue Allotment Letter is not a Title Deed. Allotment letter is just that a particluar thing or property is alloted to the concerned person.

Also Title Deed Is in it a deep defination which i also want it for our learned jurist.


God Bless.

bhagwat patil (Property due diligence 9422773303)     06 March 2011

For creating equitable  mortgage, delivery of title deeds is necessary. If no title deeds are delivered, equitable mortgage created is invalid.  This is hairlike defence if you will go through mortgage papers will get no. of discripencies and procedural lacunae by  bank officers.ask bank all papers.

raja (business)     09 March 2011

thank  you for your advise.please advise, wether drt has power to decide that mortgage is valid or not.

pratik (self working)     09 March 2011

I also need the answer about the belowmentioned question ?

1)  Wether drt has power to decide that ANY Mortgage is valid or not. 

2) What do u mean by title deed as per the TPA ( As per TPA because the types of Mortgage(S) are defined in it & to understand any Mortgage papers it is imp to understand the defination of title deed in depth)


So Kind Request To Respect Jurist to explain me the abovementioned one PLS.

God Bless U All.

bhagwat patil (Property due diligence 9422773303)     09 March 2011

title deed means registered purchase deed.or deed

pratik (self working)     09 March 2011

Thanks A Million Sirji.


But What about the Question 1) Wether drt has power to decide that ANY Mortgage is valid or not. As per which section or any apex court judgment.


God Bless U .


sheikh (advoacte)     06 August 2012

equitable mortgage by deposit of title deed can be created by allotment letter also. It depends upon the lender to create mortgage by registered or unregistered document of title. Title deed means a document showing primalry evidence of ownership of property.

Gorimaa..B (Law Student)     06 August 2012

Yes the Mortgage is valid.Equitable Mortgage can be created by Allotment Letter (Original) also.

RAJU O.F., (Advocate)     11 August 2012

For valid equitable mortgage, three ingredients are essential:

1. a debt present or future

2. deposit of documents evidencing title to property

3. intention of the owner of property to create mortgage. This intention is normally reduced to writing by a letter by the owner or by executing a memorandum of deposit of title deeds. In Tamil Nadu any such letter/emorandum will attract stamp duty.

In the instant case, if the allotment letter of the property, together with other documents such as EC, receipt for payment of consideration, etc. are evidencing the ownership of the mortgagor, then the said mortgage is valid.

sivakumar (chennai)     27 December 2012

If the bank obtains MOD for deposit of title deed even before preparation of sale deed, then what is the validity of the MOD? if it is a valid MOD could you please justify it with provision.

RAJU O.F., (Advocate)     26 January 2013

Any written documents for mortgage of EM not necessary if the mortgagor had deposited the evidence of ownership of the property, even if it is allotment letter if it is transferable. Hence in the instant case, the mortgage is valid. If the bank produce valid evidence for creation of mortgage, DRT will accept the martgage and thus proceed for enforcement of mortgage.

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