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.