The Debts Recovery Tribunal dismissed an application challenging a SARFAESI action by a bank. While holding that a lease deed can be a subject matter of mortgage, the Tribunal noted the fraud allegation requires detailed evidence and is pending in a Civil Court, finding no prima facie infirmity in the bank's action.
The application (SA 290 of 2023) was dismissed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL, PATNA
| Date of |
Order with the | Office action |
|---|---|---|
| order or |
Signature of the Court | taken with |
| nroceedinz | date |
25.07.2025
| SA 290of 2023 |
|---|
| ManjuDevi Vs. |
| CanaraBank |
Ld. counsels for the parties are present. I have heard ld. counselsfor the parties,
It has been submitted on behalf of the applicant that the applicant is not the borrower in this case. He is the lesser of the property which has been subsequently mortgaged to secure the loan taken by the lessee. The clause in the lease deed was inserted fraudulently. For that the suit is pending before Civil Court for cancellation of the lease deed. Ld. counsel for the applicant further submits that the lease cannot be a subject matter of the mortgage as the lease deed doesn't amount to the title deed. Hence, simply depositing the lease deed will not amount to the equitable mortgage by deposit of the title deeds.
The word Title Deed has not been defmed under the Transfer of Property Act. It is intended to refer the documents creating rights of the person who is executing on the date. So the lease deed in favor of the mortgager which authorizes right to mortgage is a Title Deed for that purposed. So far as the question with regards to the subject matter of the mortgage the lease can be subject matter of mortgage in view of the section 6 of the Transfer of Property Act and more specifically it is not out of place to mention here that every right in relation to or annexed with the movable property is also immovable property itself. Hence, the immovable property is subject matter of mortgage. Hence, there appears no infirmity at this stage. So far as the question with regards to the fraudulent inclusion of the clause authorizing the mortgage the property or rights of the lessee to secure the loan is concerned, admittedly, for that the dispute is already pending before the Civil Court which involves the intricate question of law and fact and can be decided after the detailed evidence on the point. Hence, this question is not being discussed in this case. At this stage, there appears no infirmity prima-facie in the SARFAESI Action initiated by the respondent. Accordingly, the present SA is dismissed. Order be uploaded on the Tribunal's website.
Patna
(Kaushalendra Yadav) Presiding Officer
2 issues framed by the court
Whether the lease deed is a valid subject matter of mortgage under Section 6 of the Transfer of Property Act.
Whether the fraudulent inclusion of a clause authorizing mortgage in the lease deed warrants quashing of the SARFAESI action at this stage.
1 provisions across 1 enactments
Manju Devi
Canara Bank
Kaushalendra Yadav
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
