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Ravi mortgages his Jaipur shop to Bank A by a registered mortgage deed. He later executes and registers another mortgage deed of the same shop in favour of Bank B. Under the proviso to Section 48 of the Registration Act, 1908, how does Bank A's mortgage rank?

Bank A's earlier mortgage takes effect against Bank B's subsequently executed and registered mortgage deed on the same shop. The proviso to Section 48 of the Registration Act, 1908 provides this for mortgages defined in section 58 of the Transfer of Property Act, 1882.

  1. AIt is lost because the later deed is registered afterwards
  2. BIt takes effect against the subsequently executed and registered mortgage deedCorrect
  3. CIt takes effect only if Bank A holds possession
  4. DIt ranks equally with Bank B's mortgage

Explanation

The proviso to Section 48 states 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. Possession is not required, and later registration does not defeat the earlier mortgage.

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