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Mohamed Shakeel (Proprietor)     27 December 2013

Equitable mortgage

Sir I have some doubts about the validity of Equitable Mortgage in non Metro Cities. I have read in Commercial Law of CS course that it is possible only in certain cities specifically mentioned but advocates here in Kerala say that all places have been included. Kindly clarify



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 7 Replies

c.p.s. ramachary (1500)     28 December 2013

Sec. 58(f) of Transfer of Property Act lays down as follows:

 

"Mortgage by deposit of title- deeds.- 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 immoveable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title- deeds.

Therefore you have to verify the Notification of the State Government and the particular place where the immovable property is situated and confirm if the particular place is added in such Notification. 


c.p.s. ramachary (1500)     28 December 2013

Sec. 58(f) of Transfer of Property Act lays down as follows:

"Mortgage by deposit of title deeds.- 

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.

Therefore you have to verify the Official Gazzette Notification of Kerala State Government where the immovable property is situated and confirm if the particular place where the immovable property is situated is added in such Notification not.

If you put in efforts to find out the above, I think you can form your own opinion . 

 

 

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com)     01 January 2014

agree with expert

SKapoor_Lawkonect (Lawyer)     06 January 2014

Hi, Shakeel equitable mortgage is the mortgage wherein the lender is secured by taking possession of all the original title documents of the property that serves as security for the mortgage. In case of non-payment of loan amount it gives the lender a right to foreclose, sell or appoint a receiver for the property. In Indian Transfer of Property Act which governs the transfer of property in India it has been dealt under clause (f) of Section 58 according to which only Calcutta, Madras and Bombay are specifically enumerated as notified town and the further power of notification is delegated to respective state governments to notify such towns where it may be executed. As in your case the requisite State government is Kerala you shall verify the notification (if any) in this regard so as to ensure that an equitable mortgage may be executed by you in the state and it would have a legal validity.

Regards,

SKapoor

LawKonect

9555507507 

srinivasarao (advocate)     16 January 2014

In November 2010 the Government of Kerala notified all the corporations, muncipalities and panchayats as notified centers for creation of equitable mortgage.  Please find the attachment of circulars you can able to understand.


Attached File : 926455900 kerala notification.pdf downloaded: 477 times

divesh (proprietor)     09 April 2015

can equitable mortgaged can be done by legal heir after death of father, after transfer of name on property card on basis of death certificate

divesh (proprietor)     09 April 2015

Try to add value to the discussion, with your each post.


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