Transfer of Property Act, 1882—Section 56—Suit for specific performance—Whether the right of marshalling by subsequent purchaser as provided in Section 56 of the Transfer of Property Act, 1882 is available to a decree holder in a suit for specific performance and whether the High Court is justified in granting such a relief in the absence of any pleading and issue before the trial Court?—Held, yes.
Showing posts with label Transfer of Property Act 1882 Section 56. Show all posts
Showing posts with label Transfer of Property Act 1882 Section 56. Show all posts
Wednesday, December 8, 2010
Transfer of Property Act, 1882—Section 56
Transfer of Property Act, 1882—Section 56—Concept of marshalling by subsequent purchaser—Held, can be explained by the following illustration:–
Suppose A owns properties X and Y. Both these properties are mortgaged to C. Later, A sells property X to B. Now, B will be entitled to insist that his vendor A, shall satisfy his mortgage debt out of property Y (unsold) in the first instance as far as possible. If after property Y is exhausted there still remains balance of debt, only then property X will be drawn upon.
Illustration
Suppose A owns properties X and Y. Both these properties are mortgaged to C. Later, A sells property X to B. Now, B will be entitled to insist that his vendor A, shall satisfy his mortgage debt out of property Y (unsold) in the first instance as far as possible. If after property Y is exhausted there still remains balance of debt, only then property X will be drawn upon.