Legal Question in Credit and Debt Law in India

I am a Banker and advanced loan to an Arhtia on the security of Equitable Mortgage of shops allotted by New Mandi Township,Punjab, Chandigarh. The authorities of New Mandi Township is not creating/entering charge/mutation in their record but as per Bank's norms the charge of Bank should be entered in the record of New Mandi Township Punjab Chandigarh . The authorities of New Mandi Township,Chandigarh has refused to enter the Bank's charge in their record saying that we can not enter the charge of Lending Bank as there is no such system sofar. Please guide in the matter how Lending Bank's charge can be created in the record of New Mandi Township, Chandigarh,Punjab.


Asked on 5/21/16, 8:36 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

21.05.2016

Dear Sir / Madam,

The New Mandi Township (NMT), Chandigarh if a State controlled association / department will be having their own guidelines and regulations governing registration of mortgages. They are legally entitled to refuse or reject registration of any mortgage if the Bank fails to comply or fulfil their preconditions and regulations for registration. If they do not have the system, you should ask them the name of the concerned authority / Municipality that registers such mortgages.

Regards,

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Answered on 5/21/16, 8:48 am

1) If the NMT has the first charge, naturally they will not register ur charge.

2) Though u created EM which does not require Registration of charge,

now-a-days after NPAs became rampant, Banks are registering their charge

with Registrar like Registered Mortgage.

3) If NMT rules do not allow any registration of charge, follow also Point 2.

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Answered on 5/21/16, 8:55 am


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