A residential flat was purchased by Mr. X by taking a loan from a bank (private financial institution) to which the flat is mortgaged. The value of the flat is Rs. 10.00 lakh now. The value of the outstanding loan of the bank is now Rs. 6.00 lakh. Now, Mr. X took money from two persons Mr. A & Mr. B the amount of which is Rs. 2.00 lakh & Rs. 4.00 lakh respectively. Since Mr. X can not repay the loans right now to Mr. A & Mr. B, he gave his flat on 'lien' to Mr. A. suppressing the fact from Mr. B. Now Mr. B came to know about it and wants a lien too on the same property. (a) Can Mr. B get a lien on the same property? If yes, what would be the value of money which he would get in case of sale of the flat? (b) Can the bank claim full Rs. 10.00 lakh of the sale proceed or will be restricted to the amount due to them only? (c) Can Mr. A hold the lien in his name even if he is paid his full dues Rs. 2.00 ;akh? (d) What are the procedure toregister the liens to be legally enforceable? (value of stamp paper). (e) Is 'lien' is strong enough to legally enforceable like mortgage?
