Registration of Memorandum of Deposit of Title Deeds (MODT) in Lieu of Equitable Mortgage Deed
IntroductionIn the context of home loans, a mortgage refers to the process wherein a borrower offers their immovable property as collateral to secure a loan. One of the common methods used in India to create such a mortgage—particularly an equitable mortgage—is through the execution and registration of a Memorandum of Deposit of Title Deeds (MODT).…
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Definition of a negative lien for creation of charge
A lien or positive lien is akin to a bailment. It is the claim or legal right to retain goods or securities that are typically used as collateral to satisfy a debt. There is no legal definition of the term ‘negative lien’ in any of the Indian legislative enactments. But as it is understood in…
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After delay in filing of registration of the charge: Condonation route
Condonation of delay by Registrar of Companies: If a company is unable to file the registration of charge within a period of thirty days of the date of creation of the charge/modification of charge, it may prepare an application in the form CHG-10 supported by a declaration from the company signed by the company secretary…
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Drawer and Acceptor of Negotiable Instruments
Negotiable Instrument Fundamentals A negotiable instrument is a written and signed document that promises or orders payment of a specific sum of money, either on demand or at a future date, to a designated person or to the bearer. Examples include cheques, bills of exchange, and promissory notes. These instruments are transferable, allowing for change…
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What is the difference between Hypothecation and Mortgage?
The lender’s right to the term “Hypothecation of assets” is not defined anywhere in the statute. Some courts have even compared hypothecation to the mortgage of movables. Hypothecation of assets is defined in SARFAESI ordinance 2002 as under; “a charge in or upon any movable property, existing or future, created by a borrower in favour…
Understanding the Different Types of Mortgages on Immovable Property in India
(This post explains the essence of Mortgage of properties and several forms of mortgage of immovable properties in India viz. Equitable Mortgage, Simple Mortgage, English mortgage, Mortgage by conditional Sale, Usufructuary Mortgage, and Anomalous Mortgage which are major types of mortgage systems currently existent in India.) The essence of Mortgage of properties: The transfer of…
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