BOB HOUSING FINANCE LTD. Vs. SAEED UR RAHMAN

JUDGEMENT

(1.) AGGRIEVED by the order dated 3.11.2006, passed in ASA -57/2005, by the DRT, Bangalore, this appeal has been filed.

(2.) THE issue raised in this appeal is whether the mortgage executed/created by a person, who has no title to the property, acquires title to the property subsequently, would validate the mortgage.

(3.) IT is true that the respondent did not have title to the property on the date of mortgage, but he had acquired title subsequently, by getting the sale deed on 4.6.1998. That apart, the respondent was also put in possession of the property, on the date of the agreement itself and, therefore, the respondent was in lawful possession, which created a possessory title to the property. When his possession is lawful, the mortgagors, who acquire title subsequently would render the equitable mortgage valid on the from the date when acquired title to the property.