Simple mortgage followed by equitabke mortgage
Sanjeev Gupta
(Querist) 05 March 2018
This query is : Resolved
Sir, A simple mortgage in state of maharashtra was created in favour a bank by registering the mortgage deed before Registrar for securing a facility of say Rs 40.00 lacs. Now the borrower was allowed enhancement of facility from Rs 40.00 lacs to Rs 70.00 lacs against security of same property already mortgaged. However, this time borrower/ mortgagor wants to enhance charge by creating further charge through Equitable mortgage. Please help whether further charge of Rs 30.00 lacs can be created by executing letter of deposit of title deeds ( Equitable mortgage) and subsequently filing letter of intimation (as prescribed in Mahahrshatra Registration Act) before the sub registrar concerned as there is an opinion that any enhancement by way of further charge upon a property which has already been mortgaged by way of simple mortgage can only be done through simple mortgage as registration Act allows modification to registered document only by way suplimentary registered document. Any judgement or order if any related to matter if available will be an additional comfort.
Read more at: https://www.lawyersclubindia.com/forum/Simple-mortgage-followed-by-equitable-mortgage-for-enhanceme-160451.asp
kavksatyanarayana
(Expert) 05 March 2018
The document is Further charge to already registered Mortgage deed and stamp duty and fees have to be paid on the total value. consult in registrar office concerned.
Ms.Usha Kapoor
(Expert) 06 March 2018
I agree with Mr.Kavaksatyanarayana.
Sanjeev Gupta
(Querist) 06 March 2018
Thank for giving response but the issue is whether equitable mortgage can be created for enhanced facilities when simple mortgage has been created for existing facilites.
Kumar Doab
(Expert) 06 March 2018
You can benefit from above advice…
Sanjeev Gupta
(Querist) 07 March 2018
Thanks again for responses but still I request all experts to help me with specific pointwise reply:
1) whether EM for further charge for enhanced portion of loan can be created when previous mortgage for existing facility is in shape of simple mortgage.
2) whether stamp duty is to be paid on enhanced portion of loan for which the further charge by way EM is being extended.
3) As the property and transaction is in state of Maharashtra, whether after creation of EM for enhanced loan amount, the charge can be registered with concerned sub-registrar by filing Letter of Intimation as provided in section 89-B of Maharashtra Registration/Stamp Act instead of executing and registering EM deed.
Sanjeev Gupta
(Querist) 07 March 2018
Thanks again for responses but still I request all experts to help me with specific pointwise reply:
1) whether EM for further charge for enhanced portion of loan can be created when previous mortgage for existing facility is in shape of simple mortgage.
2) whether stamp duty is to be paid on enhanced portion of loan for which the further charge by way EM is being extended.
3) As the property and transaction is in state of Maharashtra, whether after creation of EM for enhanced loan amount, the charge can be registered with concerned sub-registrar by filing Letter of Intimation as provided in section 89-B of Maharashtra Registration/Stamp Act instead of executing and registering EM deed.
Kumar Doab
(Expert) 07 March 2018
Still if you wish, you may approach your own very able senior LOCAL counsel of unshakable repute and integrity specializing in such/civil matters having successful track record…and worth his/her salt…
