Prior equitable mortgage prevails over later purchase, with only a short settlement window before enforcement continues.

A purchaser takes no better title where the property was already subject to an equitable mortgage created before the purchase; the secured creditor's prior security interest prevails, and alleged misrepresentation by the seller does not displace that right. On those facts, interim protection against dispossession was liable to be vacated because the petitioner could not defeat the bank's enforcement rights. The Court, however, permitted a limited settlement window for the petitioner and/or borrower to approach the bank, during which the protection was kept in force temporarily. The operative effect is that prior mortgage rights remain enforceable against a subsequent purchaser, subject only to a short period for possible settlement.

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Issues: Whether interim protection against dispossession should continue when the property had already been mortgaged to the bank before the petitioner purchased it, and whether a brief settlement window could be granted before vacating the stay.

Analysis: The property was found to have been subject to an equitable mortgage created by the owner well before the petitioner's purchase. The petitioner's allegation that he had been misled by the seller and had lodged criminal complaints did not displace the bank's prior security interest. On these facts, the petitioner could not defeat the bank's rights and the interim protection against dispossession was liable to be vacated. At the same time, the Court granted a limited period for the petitioner and/or borrower to approach the bank for settlement, during which the protection was allowed to continue.

Conclusion: The interim stay against dispossession was not continued on merits in favour of the petitioner, and the bank's right to proceed was upheld, subject only to a short settlement period.

Final Conclusion: The bank's prior mortgage rights prevailed over the petitioner's subsequent purchase, and the matter was disposed of by granting only a temporary window for possible settlement.

Ratio Decidendi: A purchaser of property subject to a pre-existing equitable mortgage cannot, by relying on alleged misrepresentation by the seller, defeat the secured creditor's prior rights to enforce its security.

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