Tpa

PROJECT REPORT

ON "Marshalling”

 SUBMITTED TO:

Ms. Apurva Verma Faul!# Trans$er %$ pr%per! Su&mi!!e' &:

(avi Ti)ari# Ti)ari# (%ll num&er: *+, Semes!er IV- B.A.# .B. /0%ns.1

HIDAYATULLAH NATIONAL LAW UNIVERSITY, RAIPUR  CHHATTISGARH Su&mi!!e' %n: *2h $e& +3*4

DE5A(ATION I# (avi Ti)ari# here& 'elare !ha!# !he pr%6e! )%r7 8Marshalling sp. Imphasis !% su&s9uen! purhase” su&mi!!e' !% 0.N..U.# (aipur is re%r' %$ an %riginal )%r7 '%ne & me un'er !he a&le gui'ane %$ Ms. Apurva Verma# Faul! Mem&er# 0.N..U.# (aipur.

(avi Ti)ari Ba!h III (%ll N%. *+, *;<3+<+3*4

A5=NO>ED?EMENTS

I $eel highl ela!e' !% ge! !% )%r7 %n !he !%pi 8Marshalling ”. The pra!ial reali@a!i%n %$ !his pr%6e! has %&liga!e' !he assis!ane %$ man pers%ns. I epress m 'eepes! regar' an' gra!i!u'e $%r Ms. Apurva Verma# $aul! %$  Trans$er %$ pr%per!. 0is %nsis!en! supervisi%n# %ns!an! inspira!i%n an' invalua&le gui'ane have &een an immense help in un'ers!an'ing an' arring %u! !he nuanes %$ !his pr%6e! rep%r!.

I )%ul' als% li7e e!en' m han' %$ gra!i!u'e !%)ar's !he $rien's an' $amil# )i!h%u! )h%se supp%r! an' en%uragemen! !his pr%6e! )%ul' n%! have &een a reali!.

I !a7e !his %pp%r!uni! !% !han7 !he universi!# an' !he 0%n%ra&le Vie 5hanell%r $%r pr%vi'ing e!ensive 'a!a&ase res%ures in !he li&rar an' !hr%ugh In!erne!.

F%r an s%r! %$ err%rs !ha! migh! have rep! in# i! is 'eepl regre!!e'. I shall  &e gra!e$ul i$ $ur!her %mmen!s an' sugges!i%ns are pu! $%r!h regar'ing impr%visa!i%n %$ !he pr%visi%ns.

~Ravi Tiwari

TABLE OF CONTENTS *. Delara!i%n.*

+. A7n%)le'gemen!s.........+ C. Ar%nms use':......................................................................................C . In!r%'u!i%n...........................................................................................4 4. O&6e!ive................................................................................................8 . 5%nlusi%n.............................................................................................1 ,. Bi&li%graph..........................................................................................1!

 Introduction De$ina!i%n  I$ a re'i!%r has aess !% !)% s%ures %$ pamen!# he shall !a7e his pamen! %u! %$ !ha! $un' up%n )hih an%!her re'i!%r has n% aess %r lien. S!ri!l spea7ing#

a re'i!%r  )h% has a lien %r a harge /suh as a m%r!gage1 an' !hus# a pri%ri! %n an asse! /%r $un'1# an' als% has aess %n an%!her asse!# an %lle! %$$ %ne %r !he %!her %r &%!h# !% !he sa!is$a!i%n %$ his 'e&!. This $rus!ra!es %!her re'i!%rs )h% '% n%! have aess !% !he harge' asse! %r $un'. The see !heir %nl s%ure %$ pamen! 'eple!e' & a re'i!%r )h% %ul' %$ %&!aine' sa!is$a!i%n $r%m !he harge' asse!.

In s!eppe' e9ui! !% !he resue# !% %ns!ru! a priniple %$ $airness an' )hih has &e%me 7n%)n as !he '%!rine %$ marshalling# re9uiring !he re'i!%r )i!h !he en$%remen! h%ies !% a! $irs! up%n !he asse! up%n )hih he al%ne has righ!s %r aess.

 In Ernst Brothers (1920), the Ontario court wrote1:

"The '%!rine %$ marshalling# in i!s applia!i%n !% m%r!gages %r harges up%n !)% es!a!es %r $un's# ma &e s!a!e' as $%ll%)s: I$ !he %)ner %$ !)% es!a!es m%r!gages !hem &%!h !% %ne pers%n ... !he se%n' m%r!gagee ma insis! !ha! !he 'e&! %$ !he $irs! m%r!gagee shall  &e sa!is$ie' %u! %$ !he es!a!e n%! m%r!gage' !% !he se%n'# s% $ar as !ha! )ill e!en'. This righ! is al)as su&6e! !% !)% imp%r!an! 9uali$ia!i%ns: $irs!# !ha! n%!hing )ill &e '%ne !% in!er$ere )i!h !he param%un! righ! %$ !he $irs! m%r!gagee !% pursue his reme' agains! ei!her %$ !he !)% es!a!es- an'# se%n'# !ha! !he '%!rine )ill n%! &e applie' !% !he pre6u'ie %$ !hir' par!ies ...."

 More recently, in Bockhold   (1999), Madam ustice Morrison o! the British "olum#ia $u%reme "ourt wrote in her ty%ical clear an d succinct style2:

*

 Erns! Br%!hers 5%. v 5an. Germanen! M%r!gage 5%rp. , O( C+ /On!ari%# *;+31

+

 B%7h%l' v a)s%n un'ell a)s%n *3 5B( !h ;3 /*;;;1

"Marshalling is an e9ui!a&le reme' !ha! ma arise )hen %u have !)% re'i!%rs %$ !he same 'e&!%r # )i!h %ne re'i!%r# s%me!imes re$erre' !% as !he seni%r re'i!%r# having !he righ! !% res%r! !% !)% $un's %$ !he 'e&!%r  $%r pamen! %$ !he 'e&!# an' !he %!her re'i!%r# !he 6uni%r re'i!%r# has !he righ! !% res%r! !% %ne $un' %nl. The %ur! an marshal %r  arrange !he $un's s% !ha! &%!h re'i!%rs are pai' !% !he grea!es! p%ssi&le e!en!.

”E9ui! )ill &e inv%7e' !% pr%!e! !he 6uni%r re'i!%r# ma7e !he seni%r re'i!%r reali@e %n asse!s in suh a )a !ha! !he seni%r re'i!%r )ill n%! )ipe %u! asse!s !ha! )%ul' %nl &e availa&le !% !he 6uni%r re'i!%r. The 6uni%r re'i!%r )ill &e su&r%ga!e' an' )ill have a harge %n !he se%n' %r su&se9uen! $un's.”

 In the &th Edition o! 'isher and ihtwood*s aw o! Mortaes, the author writes:

"The '%!rine %$ marshalling res!s up%n !he priniple !ha! a re'i!%r )h% has !he means %$  sa!is$ing his 'e&! %u! %$ several $un's shall n%!# & !he eerise %$ his righ!# pre6u'ie an%!her re'i!%r )h%se seuri! %mprises %nl %ne %$ !he $un's."

 Section 81 in The Transfer of Property Act, 1882

Marshalling# seuri!ies.HI$ !he %)ner %$ !)% %r m%re pr%per!ies m%r!gages !hem !% %ne  pers%n an' !hen m%r!gages %ne %r m%re %$ !he pr%per!ies !% an%!her pers%n# !he su&se9uen! m%r!gagee is# in !he a&sene %$ a %n!ra! !% !he %n!rar# en!i!le' !% have !he  pri%r m%r!gage'e&! sa!is$ie' %u! %$ !he pr%per! %r pr%per!ies n%! m%r!gage' !% him# s% $ar as !he same )ill e!en'# &u! n%! s% as !% pre6u'ie !he righ!s %$ !he pri%r m%r!gagee %r  %$ an %!her pers%n )h% has $%r %nsi'era!i%n a9uire' an in!eres! in an %$ !he  pr%per!ies.

O"#$%&iv$ '( I T% s!u' !he marshalling as in ase %$ su&se9uen! purhaser.

II T% S!u' !he ingre'ien!s an' limi!a!i%n %$ &%un'ar.

R$)$ar%* +$&*-./0' This researh is 'esrip!ive an' anal!ial in na!ure. Se%n'ar an' ele!r%ni res%ures have &een largel use' !% ga!her in$%rma!i%n an' 'a!a a&%u! !he !%pi. B%%7s an' %!her re$erene as gui'e' & !he $aul! have &een primaril help$ul in giving !his pr%6e! a $irm s!ru!ure. >e&si!es# 'i!i%naries# ar!iles an' ases have als% &een re$erre'. F%%!n%!es have &een pr%vi'e' )herever neessar !% a7n%)le'ge !he same.

I I2/r$-i$2&) a2- .i3i&a&i2 4 3ar)*a..i2/ Un'er !he %l' se!i%n# !he se%n' m%r!gagee ha' n% righ! !% have !he seuri!ies marshalle'# unless he ha' n%!ie %$ !he pri%r m%r!gage.C The %n'i!i%n as !% n%!ie has  &een %mi!!e'. The righ! !% all $%r marshalling is h%)ever# su&6e! !% %!her %n'i!i%ns. C

 In'er'a)an persha' v. ?%vin' lal# ++ 5al. ,;4

C332 -$"&r'( !he $irs! %$ !hese is !ha! !here mus! &e a %mm%n 'e&!%r# an'

marshalling applies %nl )hen !here are 'i$$eren! 'e&!s reali@a&le %u! %$ !he several  pr%per!ies %$ !he! %ne %mm%n 'e&!%r- an' s% !he se!i%n re9uires !ha! &%!h m%r!gages shall &e & !he same %)ner. This priniple )as applie' in ?%pala ase# )here A as manager %$ a 6%in! 0in'u $amil %nsis!ing %$ himsel$ an' B# m%r!gage' er!ain i!ems %$  !he 6%in! $amil pr%per! !% . Su&se9uen!l# a$!er par!i!i%n# A m%r!gage' !%  his share in s%me %$ !hese i!ems. Mu!hus)ami Aar# J.# %&serve' : 8n% marshalling %ugh! !% !he en$%re' unless !he par!ies &e!)een )h%m i! is en$%re' are re'i!%rs %$ !he same pers%n# an' have 'eman's agains! pr%per!ies %$ !he same pers%n.” The 'e&!%r %$  is !he 6%in! $amil represen!e' & A. The 'e&!%r %$  is A in his in'ivi'ual apai!. S% !here is n% %mm%n 'e&!%r an' !he laim !% marshalling ann%! &e sus!aine'.

In Jai SinghKs ase# $%ur pr%pe!ies )ere m%r!gage'. Three %$ !hem )ere in Ga7is!an. The 0igh 5%ur! %$ Allaha&a' hel' !ha!# as i! )as in6uri%us !% !he righ!s %$ !he m%r!gagee# s% marshalling %ul' n%! &e all%)e'.4

N Pr$#5-i%$ r5.$ '( marshalling &eing a rule %$ e9ui!# )ill n%! &e en$%re'# s% as !%

)%r7 in6us!ie !% !he pri%r re'i!%r. The Gri%r m%r!gagee ann%! &e %mpelle' !% pr%ee' agains! seuri! )hih ma &e insu$$iien! %r '%u&!$ul %r )hih ma inv%lve him in li!iga!i%n. The Allaha&a' an' (ang%%n 0igh 5%ur!s hel' !he vie) !ha! !he puisne m%r!gageeKs righ! !% marshalling is una$$e!e' & !he pri%r m%r!gageeKs release %$ !he



 ?%pala v. S)amina!h aar# *+ Ma'. +44  Jai singh v. 0aran 'as AI( *; All +2*

4

%!her pr%per!. The %n!rar vie) )as !a7en & !he Ma'ras 0igh! 5%ur!. I! )as p%in!e' %u! !ha! marshalling implies !he eis!ene %$ !)% se!s %$ pr%per!ies %ne %$ )hih is su&6e! !% &%!h !he m%r!gages an' !he %!her is su&6e! %nl !% an earlier m%r!gage. B !he release %$ %ne %$ !he pr%per!ies# !here are n% l%nger !)% se!s %$ pr%per!ies lia&le !% &e s%l' & $irs! m%r!gagee# &u! %nl %ne pr%per! )hih is su&6e! !% &%!h !he m%r!gages. The '%!rine %$  marshalling !here$%re# ann%! &e inv%7e'.

The Griv 5%unilKs 'eisi%n in (am 5han' V. Gar&hu Daal#, las '%)n !ha! i! is %pen !% m%r!gagee !% release an par! %$ his seuri! )i!h%u! a$$e!ing his righ! agains! !he res! %$ hp%!hea. The Ma'ras vie) in re Mu!hammal is# !here$%re# pre$era&le.

N 6r$#5-i%$ & &*$r $2%53"ra2%$r) '( marshalling )ill als% n%! &e en$%re' as !%

 pre6u'ie an%!her enum&raner. F%r ins!ane# A m%r!gages  an'  !% B- A !hen m%r!gages  !% 5- A !hen m%r!gages  !% D. Then i$ 5 )ere !% insis! !ha! B sh%ul' pa himsel$ )h%ll %u! %$ # !here migh! &e n%!hing le$! $%r D. The 5%ur! )%ul' !here$%re app%r!i%n BKs m%r!gages ra!ea&l &e!)een  an'  an' !he surplus %$  )%ul' g% !% 5 an' !he surplus %$  !% D. The lea'ing ase %n !his p%in! is Barness V. (e!%r 2. This rule )as pre$erre' & !he 5alu!!a 0igh 5%ur! in Umesh 5han'ra Man'alKs; ase in )hih marshalling )as re$use' as !he righ!s %$ su&se9uen! purhasers )%ul' &e a$$e!e'.

 Limitation:-

C2&a%& & &*$ %2&rar0 '( The righ! %$ marshalling ma &e elu'e' & %n!ra!. Thus#

i$ A m%r!gages  an'  !% B an' A !hen m%r!gages  !% 5. 5 )ill have n% righ! !% re9uire B !% reali@e his m%r!gage as $ar as p%ssi&le %u! %$  i$ 5Ks m%r!gage has &een ma'e 

 In re# mu!hammal#AI( *;C2 Ma'.43C  AI( *;+ G.5 43 2  /*2+1 *  L 5 5h. 3* ;  Umesh han'ra man'al v. 0emangahan'ra# 3 5al. 2, ,

epressl su&6e! !% an' a$!er sa!is$a!i%n %$ BKs m%r!gage.

The %nverse is als% !rue# )hen !here is a !hir' enum&raner. Thus# )here A m%r!gages  an'  !% B# A !hen m%r!gages  !% 5 an' a$!er)ar's  an'  !% D- !hen i$ DKs m%r!gage has &een ma'e epressl su&6e! !% an' a$!er sa!is$a!i%n %$ !he !)% pri%r  m%r!gages# D %ul' n%! preven! 5 $r%m marshalling agains! him.

In Ven7aaKs ase*3 A an' B# !)% un'ivi'e' hin'u &r%!hers m%r!gage' !heir pr%per!ies  an'  !% (. A! a su&se9uen! par!i!i%n A g%!  an' B g%! . Then A m%r!gage'  !% S )h%  purhase'  in eeu!i%n %$ 'eree %n $%%! %$ his %)n m%r!gage. ( $iles a sui! %n his m%r!gage. S %n!en's !ha! ( sh%ul' pr%ee' $irs! agains! . The laim !% marshalling is n%! main!aina&le.

+ar)*a..i2/ a2- Civi. Pr%$-5r$ C-$ '( Even )here !he righ! %$ marshalling as

ena!e' in se!i%n 4 an' 2* is n%! availa&le# !he %ur! has# un'er %r'er IV# rules  an' 4 %$ 5ivil Gr%e'ure 5%'e# ample p%)er !% la '%)n !he %r'er in )hih !he vari%us m%r!gage' pr%per!ies sh%ul' &e s%l' &u! !his p%)er ann%! &e eerise' ar&i!raril &u! %nl 6u'iiall !% s9uare up !he e9ui!ies &e!)een !he %n!en'ing par!ies an' !% preven!  pre6u'ie !% !he m%r!gagees.

II +ar)*a..i2/ & S5")$75$2& P5r%*a)$r S$%&i2  i2 T*$ Tra2)4$r 4 Pr6$r&0 A%&, 1889

Marshalling & su&se9uen! purhaser.HI$ !he %)ner %$ !)% %r m%re pr%per!ies m%r!gages !hem !% %ne pers%n an' !hen sells %ne %r m%re %$ !he pr%per!ies !% an%!her pers%n# !he  &uer is# in !he a&sene %$ a %n!ra! !% !he %n!rar# en!i!le' !% have !he m%r!gage''e&! *3

 Ven7aa v. Ven7a!aramaa# AI( *;C3 Ma'. *,2

sa!is$ie' %u! %$ !he pr%per! %r pr%per!ies n%! s%l' !% him# s% $ar as !he same )ill e!en'#  &u! n%! s% as !% pre6u'ie !he righ!s %$ !he m%r!gagee %r pers%ns laiming un'er him %r %$  an %!her pers%n )h% has $%r %nsi'era!i%n a9uire' an in!eres! in an %$ !he pr%per!ies**.

There is %ne m%re imp%r!an! rule !% %nsi'er )hih rela!es !% !he priniple %$ marshalling  & a su&se9uen! purhaser. Un'er Se!i%n 4 %$ !he TOGA# i$ a pers%n %)ning !)% %r  m%re pr%per!ies m%r!gages a num&er %$ !hem !% %ne pers%n# an' su&se9uen!l sells %ne %$  !h%se pr%per!ies !% an%!her pers%n# !hen !he &uer is en!i!le' !% have !he m%r!gage 'e&! sa!is$ie' %u! %$ !he pr%per! n%! s%l' !% him as $ar as p%ssi&le unless !here is a %n!ra! !% !he %n!rar. This is alle' 8marshalling & a su&se9uen! &uer *+”.

Se!i%n 4# 2*  Marshalling  5%nep! %$ marshalling & su&se9uen! purhaser an &e eplaine' & !he $%ll%)ing illus!ra!i%n  A %)ns pr%per!ies  an'   B%!h !hese  pr%per!ies are m%r!gage' !% 5  a!er# A sells pr%per!  !% B  N%)# B )ill &e en!i!le' !% insis! !ha! his ven'%r A# shall sa!is$ his m%r!gage 'e&! %u! %$ pr%per!  /uns%l'1 in !he $irs! ins!ane as $ar as p%ssi&le  I$ a$!er pr%per!  is ehaus!e' !here s!ill remains  &alane %$ 'e&!# %nl !hen pr%per!  )ill &e 'ra)n up%n  Se!i%n 4 'eals )i!h !he %nep! %$ marshalling in a !ransa!i%n inv%lve' in su&se9uen! sale# %n !he %!her han'# Se!i%n 2* is applia&le %nl !% m%r!gages  D%!rine %$ marshalling res!s up%n !he  priniple !ha! a re'i!%r )h% has !he means %$ sa!is$ing his 'e&! %u! %$ several $un's shall n%!# & !he eerise %$ his righ!# pre6u'ie an%!her re'i!%r )h%se seuri! %mprises %nl %ne %$ !he $un's. +:) JP B5i.-$r) ; A2&*$r v A Ra3a-a) Ra ; A2&*$r,9<11=9> LAR 19 =SC>

 Shri Lakhi Ram !ead" Throu#h Lrs $s Shri Trikha Ram % &rs on ' (e)ruary, 1**8 1+

The appellan! is !he %riginal plain!i$$ )h% ha' $ille' a sui! $%r spei$i per$%rmane %$  %n!ra! $%r sale %$ sui! lan's. The sui! )as $ile' agains! !he %riginal ven'%r i.e. resp%n'en! n%. + an' als% agains! !he )5")$75$2& 65r%*a)$r) # resp%n'en! n%s. * L C **

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herein. >e )ill re$er !% !he appellan! as !he plain!i$$ an' !he resp%n'en!s as 'e$en'an!s $%r  !he sa7e %$ %nveniene in !he la!!er par! %$ !his 6u'gmen!. The plain!i$$ has $el! aggrieve'  & !he 'eisi%n %$ !he 0igh 5%ur! passe' in misellane%us appeal )here& !he 0igh 5%ur! has se! asi'e !he %r'er %$ amen'men! %$ plain! as gran!e' & !he $irs! appella!e %ur! an' 'ismisse' !he plain!i$$Qs sui!. Glain!i$$# 'e$en'an! n%. * agree' !% sell his en!ire share %n C3..*3; !% !he plain!i$$ $%r a %nsi'era!i%n %$ (s. *+#333< /(upees !)elve !h%usan' %nl1. (s. +#333< /(upees !)% !h%usan' %nl1 )as !a7en & him as earnes! m%ne $r%m !he plain!i$$ )hen he eeu!e' !he sai' agreemen! %n !he same 'a in plain!i$$Qs $av%ur. A%r'ing !% !he plain!i$$# 'espi!e !his agreemen! 'e$en'an! n%. * 'i' n%! eeu!e !he sale 'ee' an' ins!ea' s%l' !he pr%per! !% 'e$en'an! n%s. + L C. 0e !herea$!er $ile' !he a$%resai' sui! $%r spei$i per$%rmane. De$ene )as su&mi!!e' &  !he)5")$75$2& 65r%*a)$r)  namel# 'e$en'an! n%s. + L C. A$!er hearing !he %n!es!ing par!ies !he !rial %ur! !%%7 !he vie) !ha! i! )as pr%ve' !ha! 'e$en'an! n%. * ha' agree' !% sell !he 'ispu!e' pr%per! !% !he plain!i$$ %n C3..*;; a$!er  aep!ing (s. +#333< /(upees !)% !h%usan' %nl1 as earnes! m%ne. I! )as als% hel' !ha! 'e$en'an! n%s. + L C )ere n%! &%na$i'e 65r%*a)$r)  $%r value )i!h%u! n%!ie# !ha! !he sui! )as n%! &arre' un'er se!i%n C %$ !he Spei$i (elie$ A!. In !he (esul!# !he sui! )as 'eree' & !he !rial %ur! & %r'er 'a!e' *2..*;,+. De$en'an!

I! )as ne! %n!en'e' !ha! in an ase suh a grievane a&%u! gran! %$ amen'men! %ul' n%! have &een ma'e & 'e$en'an! n%s.+ an' C )h% are )5")$75$2& 65r%*a)$r)  an' suh grievane# i$ a! all# %ul' have &een ma'e & !he %riginal ven'%r )h% )as par! !%! he agreemen!# namel# 'e$en'an! n%.* an' he )as se! epar!e all !hr%ugh%u! in !h%se  pr%ee'ings an' 'i' n%! !hin7 i! $i! !% raise suh %n!en!i%n. Even !ha! apar!# 'e$en'an!

n%s. + an' C als% in !heir )ri!!en s!a!emen! 'i' n%! raise suh a su&missi%n an' n% issue )as $rame' & !he !rial %ur!. In !his %nne!i%n# reliane )as plae' %n a la!!er 'eisi%n %$ !)% learne' Ju'ge %$ !his 5%ur! in !he ase %$ Jugra6 Singh L Anr. vs. a&h Singh rep%r!e' in *;;4 /+1 S55 C* In !ha! ase# a Benh %$ !his 5%ur! %nsis!ing %$ =. (amas)am L N. Ven7a!ahala# JJ. %&serve' !ha! !he plea a&%u! Se!i%n */1 %$ !he Spei$i (elie$ A!# pr%vi'es !ha! !he plain!i$$ mus! plea' an' pr%ve !ha! he )as al)as rea' an' )illing !% per$%rm his par! %$ !he essen!ial !erms %$ !he %n!ra!. The plea is spei$iall availa&le !% !he ven'%r as i! is pers%nal !% him. The )5")$75$2& 65r%*a)$r)   have g%! %nl !he ligh! !% 'e$en' !heir purhase %n !he  premise !ha! !he have n% pri%r 7n%)le'ge %$ !he agreemen! %$ sale )i!h !he plain!i$$. The are &%na$i'e 65r%*a)$r)   $%r valua&le %nsi'era!i%n. Th%ugh !he are neessar  par!ies !% !he sui! sine an 'eree %&!aine' & !he plain!i$$ )%ul' &e &in'ing %n !he )5")$75$2& 65r%*a)$r) # !he plea !he !he plain!i$$ mus! al)as &e rea' an' )illing !%

 per$%rm his par! %$ !he %n!ra! mus! &e availa&le %nl !% !he ven'%r %r his legal represen!a!ives &u! n%! !% !he )5")$75$2& 65r%*a)$r) . Even %n !ha! &asis i! )as su&mi!!e' !ha! 'e$en'an! n%s.+ L C %ul' n%! have suh grievane &e$%re !he 0igh 5%ur!.

 Sardar o$indrao ahadik % Anr $s !e$i Sahai % &rs on 1' !ecem)er, 1*81 1.

The appellan! m%r!gag%r !%%7 a l%an & m%r!gaging his h%use pr%per! !% !he resp%n'en! m%r!gagee. The m%r!gage )as a m%r!gage )i!h p%ssessi%n. A%r'ing !% !he m%r!gagee s%me!ime !herea$!er !he m%r!gag%r agree' !% sell !he pr%per! !% him an' !ha! pursuan! !% !his agreemen! re9uisi!e s!amps )ere 65r%*a)$- an' a 'ra$! sale 'ee' )as 'ra)n up. The *

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sale 'ee' )as h%)ever n%! regis!ere'. A $e) 'as la!er !he m%r!gag%r s%l' !he pr%per! !% an%!her pers%n an' !he m%r!gag%r an' !he )5")$75$2& 65r%*a)$r  $ile' a sui! agains! !he m%r!gagee $%r a 'eree $%r re'emp!i%n. In !he )ri!!en s!a!emen! !he m%r!gagee laime' !ha! even !h%ugh !he sale 'ee' )as n%! regis!ere'# sine he )as in p%ssessi%n %$ !he  pr%per! in par! per$%rmane %$ !he %n!ra! %$ sale an' %n!inue' !% &e in p%ssessi%n an' 'i' several a!s a!!ri&u!a&le !% !he %n!ra!# !he m%r!gag%r )as 'e&arre' $r%m en$%ring an righ! agains! him in respe! %$ !he pr%per!. I! )as als% laime' !ha! sine !he m%r!gag%r himsel$ ha' n% su&sis!ing !i!le !% !he pr%per! %n !he 'a!e %$ sale# he %ul' n%! have !rans$erre' !he pr%per! S5")$75$2& 65r%*a)$r. The !rial %ur! hel' !ha! !h%ugh !he sale 'ee' )as eeu!e' &u!

sine i! )as n%! regis!ere' !he !ransa!i%n %$ sale )as n%! %mple!e. The 5%ur! $ur!her  hel' !ha! &ene$i! %$ se!i%n 4C A is n%! availa&le !% !he m%r!gag%r 'e$en'an! &eause !he m%r!gage &eing a m%r!gage )i!h p%ssessi%n# %n!inue' p%ssessi%n %$ !he m%r!gagee a$!er  !he 'a!e %$ %n!ra! )%ul' n%! &e in par! per$%rmane %$ !he %n!ra!# an' als% !he  pamen! ma'e $%r !he purhase %$ s!amps an' $%r epenses %$ regis!ra!i%n %ul' n%! &e sai' !% &e in $ur!herane %$ !he %n!ra! &eause !ha! am%un! )as pai' &e$%re !he eeu!i%n %$ !he %n!ra!. In !he m%r!gageeQs appeal !he 0igh 5%ur! hel' !ha! he )as en!i!le'

!%

!he

&ene$i!

%$

se!i%n

4CA

agains!

!he

m%r!gag%r

an'

!he )5")$75$2&65r%*a)$r  $%r !he reas%n !ha! he )as in p%ssessi%n %$ !he pr%per! an'  pai' (s. *333 in $ur!herane %$ !he %n!ra!. The appellan! in 5ivil Appeal N%. **4 %$  *;; $ile' a sui! agains! !he m%r!gag%r $%r re%ver %$ a 'e&! %)e' !% him an' %&!aine' a!!ahmen! %$ !he *2, sui! pr%per! &e$%re 6u'gmen!. The sui! even!uall en'e' in a 'eree in his $av%ur# In !he au!i%n S%me!hing in'epen'en! %$ !he mere re!en!i%n %$ p%ssessi%n !% evi'ene par! per$%rmane. Mere re!en!i%n %$ p%ssessi%n# 9ui!e legal an' vali'# i$ m%r!gage )i!h p%ssessi%n is n%! 'isharge'# %ul' har'l &e sai' !% &e an a! in par! per$%rmane une9uiv%all re$era&le !% !he %n!ra! %$ sale. R+*C DE# +*4 EF In !he ins!an! ase re!en!i%n %$ p%ssessi%n is %$  n% %nse9uene &eause !he m%r!gage )as n%! 'isharge' an' )as su&sis!ing an' !he m%r!gage &eing a m%r!gage )i!h p%ssessi%n# !he m%r!gagee )as en!i!le' !% re!ain  p%ssessi%n. The $a! !ha! imme'ia!el a sale 'ee' )as eeu!e' in $av%ur %$ 

!he )5")$75$2& 65r%*a)$r  & !he m%r!gag%r )%ul' sh%) !ha! he )as n%! )illing !% aep! !he %n!ra! as %$$ere' & !he m%r!gag%r. The )5")$75$2& 65r%*a)$r  ha' !a7en a %n'i!i%nal sale an' !his rein$%res !he s!an' %$ !he m%r!gag%r. The eis!ene %$ !he 'ispu!e# a&%u! !he na!ure %$ !he !ransa!i%n# is n%! in 'ispu!e. There$%re !he %n'u! %$ !he m%r!gag%r is %nsis!en! )i!h his ase. R+*, DF The m%r!gagee ha' $aile' !% pr%ve !ha! he 'i' an a! in $ur!herane %$ !he %n!ra!# %n!inue' re!en!i%n %$ p%ssessi%n &eing a irums!ane %$ neu!ral hara!er in !he $a!s an' irums!anes %$ !he ase (e$erre' !%. R++*DE The 'eree h%l'er 'i' n%! a9uire un'er !he sale er!i$ia!e !he e9ui! %$ re'emp!i%n %$ !he m%r!gage. The sui! pr%per! )as s%l' su&6e! !% su&sis!ing m%r!gage in $av%ur %$ !he m%r!gagee. A! a 5%ur! au!i%n )ha! is s%l' is righ!# !i!le an' in!eres! %$ !he 6u'gmen! 'e&!%r )h% in !his ase )as !he m%r!gag%r. Su&6e! !% %!her  %n'i!i%ns# his righ! is !he righ! !% re'eem !he m%r!gage. Muh &e$%re !he pr%lama!i%n %$  sale )as issue' !he e9ui! %$ re'emp!i%n hel' & !he m%r!gag%r )as s%l' & him !% !he )5")$75$2& 65r%*a)$r. There$%re# even %n !he 'a!e %$ 'eree as als% %n !he 'a!e %$  $iling %$ !he eeu!i%n applia!i%n !he m%r!gag%r ha' n% su&sis!ing in!eres! in !he pr%per! )hih %ul' &e s%l' a! !he 5%ur! au!i%n. R+++ AB The %&6e! &ehin' !he %r'er leving an a!!ahmen! &e$%re 6u'gmen! is !% give an assurane !% !he plain!i$$ !ha! his 'eree# i$  ma'e# )%ul' &e sa!is$ie'. >here an a!!ahmen! has &een ma'e# an priva!e !rans$er %r  'eliver %$ !he pr%per! a!!ahe' )%ul' &e v%i' as agains! all laims en$%rea&le un'er  !he a!!ahmen!. >ha! is laime' en$%rea&le is laim $%r )hih !he 'eree is ma'e. A 'ismissal.

/onc0usion:-

"Marshalling is an e9ui!a&le reme' !ha! ma arise )hen %u have !)% re'i!%rs %$ !he same 'e&!%r # )i!h %ne re'i!%r# s%me!imes re$erre' !% as !he seni%r re'i!%r# having !he righ! !% res%r! !% !)% $un's %$ !he 'e&!%r  $%r pamen! %$ !he 'e&!# an' !he %!her re'i!%r# !he 6uni%r re'i!%r# has !he righ! !% res%r! !% %ne $un' %nl. The %ur! an marshal %r  arrange !he $un's s% !ha! &%!h re'i!%rs are pai' !% !he grea!es! p%ssi&le e!en!.

”E9ui! )ill &e inv%7e' !% pr%!e! !he 6uni%r re'i!%r# ma7e !he seni%r re'i!%r reali@e %n asse!s in suh a )a !ha! !he seni%r re'i!%r )ill n%! )ipe %u! asse!s !ha! )%ul' %nl &e availa&le !% !he 6uni%r re'i!%r. The 6uni%r re'i!%r )ill &e su&r%ga!e' an' )ill have a harge %n !he se%n' %r su&se9uen! $un's.”

"The '%!rine %$ marshalling res!s up%n !he priniple !ha! a re'i!%r )h% has !he means %$  sa!is$ing his 'e&! %u! %$ several $un's shall n%!# & !he eerise %$ his righ!# pre6u'ie an%!her re'i!%r )h%se seuri! %mprises %nl %ne %$ !he $un's."

There is %ne m%re imp%r!an! rule !% %nsi'er )hih rela!es !% !he priniple %$ marshalling  & a su&se9uen! purhaser. Un'er Se!i%n 4 %$ !he TOGA# i$ a pers%n %)ning !)% %r  m%re pr%per!ies m%r!gages a num&er %$ !hem !% %ne pers%n# an' su&se9uen!l sells %ne %$  !h%se pr%per!ies !% an%!her pers%n# !hen !he &uer is en!i!le' !% have !he m%r!gage 'e&! sa!is$ie' %u! %$ !he pr%per! n%! s%l' !% him as $ar as p%ssi&le unless !here is a %n!ra! !% !he %n!rar. This is alle' 8marshalling & a su&se9uen! &uer”.

 References:-



http:0ainformationindia3)0o#spot3in241112transfer-of property-act-1882-.-of-18823htm0 



http:indiankanoon3or#docfra#ment1*56'157 )i#1%formInput9su)seuent9purchaser9



http:indiankanoon3or#docfra#ment1*6'24.7 )i#1%formInput9su)seuent9purchaser9



http:3duhaime3or#Le#a0!ictionaryarsha00in#3asp  ; 



h!!p:<