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prabodh kumar patel (advocate)     14 November 2008

Mortgage with Sale Deed?

Whether equitable mortgage is possible with Sale Deed only as the ROR (Patta) is yet to be issued due to pendecy of mutation process? 


 12 Replies

Prakash Yedhula (Lawyer)     15 November 2008

 Yes. With by deposing the original title deed one can create an equitable mortgage. 

P.Elamaran (Law Officer in a CPSU)     15 November 2008

I think the sale deed itself is a good enough document, based on which one can execute an equitable mortgage. An equitable mortgage need not be reduced into writing but mere deposit of title deed is sufficient. In old days, only the three presidency towns in India such as Bombay, Calcutta and Madras were the notified areas for executing the equitable mortgages , but nowadays , many big cities in India have been declared as notified areas for the purpose.

V.V.RAMDAS (Advocate)     16 November 2008

Dear Prabodh,

I do agree with the opinion as maintioned above  but I would like to  add some thing more. That the following documents ca be treated as documents of title and can be deposited for the urpose of equitable mortgage as security for the advance.(1) ROR(PATTA) (2)Sale deed, (3) Gift deed, (4) Lease deed, (5) Probate of a will or Will.

prabodh kumar patel (advocate)     27 January 2009


PALNITKAR V.V. (Lawyer)     28 January 2009

I also agree

Sanjeev Tewatia (Advocate)     28 January 2009

but take the proper chain of title

N.Ramakrishnan (Advocate/ Senior Partner)     05 February 2009

Dear Subodh,

The sale deed is the primary document of title to a property. Thereare a number of judgments which say that the Patta is not a document of title. Patta and other revenue records will only support the title deed and serves only a collateral purpose. Deposit of sale deed alone is sufficient to create EM

Thanks, Ramakrishnan ADV 


Y V Vishweshwar Rao (Advocate )     12 March 2009

You can create Equitabel Mortgage by depositing  the  Original Sale Deed and  give a Certificate from MRO  to the effect the ROR Books ar enot issued to you and also submit  an undertakng  to the Bank that  ROR Title Books  Books are not yet issued to you  and you under take to deposit the ROR Books as and when issed to you . This will serve the purpose and the EM created by  deposit of Regd Sale deed shall be informed to the MRO for recording the mortgage/charge even during  the Mutation Process and pendign proceedigns for issue of ROR Title Books to you ----------------------------------------------------------

Y V Vishweshar  Rao Advocate Warangla AP 

V.V.RAMDAS (Advocate)     26 May 2009

Dear Mr Ramakrishnan,

I would not be agree with you. Because  , take one example that  in a particular area for the first time the survey and settlement has taken place by the governament and "X" has been supplied with an ROR(Record of Right) i.e Patta for the first time  for a particular land by virtue of his posession and he he had/has no sale deed. In this case where from he got a sale deed ?.So here the Patta is the original title deed and he can go for mortgage by his Patta only along with E.C & Rent receipt.

anveshika (STUDENT)     11 November 2010

Can there be a equitable mortgage in the absence of a the sale deed? A very logical conclusion is no, however are there any judgments on the same lines?

Uday (Lawyer)     22 December 2010

Dear Anveshika,

An intention to create mortgage alone is sufficient to create a equitable mortgage. Even if the title deeds have not been deposited, but a mortgage has been created over the property, it deems that he has created mortgage over the property.

shakir sheikh (Legal Head)     13 November 2013

In Dohganna .vs. Jammanna (AIR 1931 Madras 613),  it was pointed out that in case of pattas in respect of a  land in Zamindari, if the land be at the disposal of the  landlord at the time of granting the patta, prima facie such patta would not be a mere bill of rent but something more  in order to create an equitable mortgage by depositing of  the same

Full Bench of the Rangoon High Court in case of Chidambaram Chettyar v. Aiz Meah, AIR 1938 Rang 149 (FB)  has reviewed the English and Indian authorities and has pointed out that in order to create a valid mortgage, it is not necessary that the whole, or even the most material of the documents of title to the property should be deposited; nor that the documents deposited should show a complete or good title in the depositor and it is sufficient if the deeds deposited bona fide relate to the property or are material evidence of title or are shown to have been deposited with the intention of creating a security thereon

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