UNIT 2(SALE + mortgage)

A Bhaggyamma v. Bangalore Development Authority, Bangalore.

In this case, court held that if the older of a general power of attorney is authorized to transfer property then the meaning of the word transfer should not be given a restricted meaning because transfer covers various modes of conveyance including sale, mortgage, lease, etc. and that the holder of the GPA, has the authority to sell the property .

Madam Pillai v. Badrakali Ammal

Where transfer is not in exchange for money consideration but transfer is in pursuance of a compromise in a family settlement, the transaction is not held to be sale as no price was paid or promised.

Karan Singh Sobti v. Shukla Bedi

In this case, the creditor obtained a decree on the footing of the mortgage. During the pendency of the execution proceedings of the mortgage decree, the appellant purchased one of the mortgaged properties. In execution of the decree, the mortgage properties including the one bought by the appellant was put up for auction. The appellant prayed that the doctrine of marshalling should apply and that the property he bought should be sold to contribute to satisfy the debt only after the property that was not sold to him is sold. Court held doctrine of marshalling to be applicable.

Prathipati Subba Rao v. Union Bank of India Pasummaru Branch

in this case, court held that the exercise of the right of marshalling should not prejudice the right of the mortgagee or person claiming under him or any person who for consideration has acquired an interest in the any of the properties. Thus where the sale of other property is not enough to satisfy the decree then the other items or properties put aside as a measure of marshalling shall also be brought to sale.

Jayasingh dnyanu mhoprekar v. Krishna Babaji Patil

In this case, the court held that the right of redemption under a mortgage deed can come to an end only in a manner known to known to law. such extinguishment can occur by a merger, a contract between the parties or by a statutory provision debarring the mortgagor from redeeming the mortgage. when a suit for redemption is filed, the mortgagee will have to return possession of the same unless he can show that the right of redemption has come to an end or is liable to be dismissed under any valid ground. This flows from the legal principle that once a mortgage always a mortgage.