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CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Meera Exports mortgages a plot to Lender A by a registered mortgage deed. Later she executes and registers another mortgage deed over the same plot in favour of Lender B. Which statement reflects the Registration Act, 1908, section 48 proviso?

Lender A's earlier mortgage takes effect against the later registered mortgage-deed. The proviso to section 48 of the Registration Act says a mortgage as defined in section 58 prevails over any mortgage-deed subsequently executed and registered for the same property.

  1. ALender A's mortgage takes effect against the subsequently executed and registered mortgage-deed relating to the same propertyCorrect
  2. BLender B's mortgage prevails because it was registered later
  3. CBoth mortgages rank equally regardless of date
  4. DLender A's mortgage is void because a second mortgage was created

Explanation

The proviso to section 48 provides that a mortgage as defined in section 58 of the Transfer of Property Act shall take effect against any mortgage-deed subsequently executed and registered relating to the same property. Hence the earlier mortgage has priority over the later one. Later registration gives no priority.

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