https://www.taxtmi.com/caselaws?id=767103 Priority between earlier and later mortgages depends on whether the prior mortgagee's gross negligence enabled the mortgagor to create the subsequent security. Where an equitable mortgage was claimed through deposit of title documents but the original title deed was not shown to have been secured, and reliance rested only on a lodgment receipt, inadequate efforts to obtain the original from the Sub-Registrar's office constituted material lack of diligence. Under Section 78 of the Transfer of Property Act, 1882, such gross negligence can postpone the earlier mortgagee's priority, allowing the later mortgagee, which took security over original title deeds, to prevail. en-us Fri, 21 Feb 2025 00:00:00 +0530 Fri, 21 Mar 2025 17:08:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767103 Priority between earlier and later mortgages depends on whether the prior mortgagee's gross negligence enabled the mortgagor to create the subsequent security. Where an equitable mortgage was claimed through deposit of title documents but the original title deed was not shown to have been secured, and reliance rested only on a lodgment receipt, inadequate efforts to obtain the original from the Sub-Registrar's office constituted material lack of diligence. Under Section 78 of the Transfer of Property Act, 1882, such gross negligence can postpone the earlier mortgagee's priority, allowing the later mortgagee, which took security over original title deeds, to prevail. Case-Laws Indian Laws Fri, 21 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767103