Other TaxationsLaw Report
When the Gift Deed was executed in the year 2004, which was not revoked, then on the date of execution of the Gift Deed all the right, title, and interest were transferred in favour of the Donee
![Any equitable mortgage created in favour of Bank after execution of Gift Deed, cannot be a valid mortgage: DRAT Dismisses Appeal of UCO Bank [Read Order]](https://www.taxscan.in/_img?w=640&u=https%3A%2F%2Fdocuments.taxscan.in%2Fimages%2F2025%2F1430444-cover-2078257-any-equitable-mortgage-mortgage-created-in-favour-of-bank-taxscan.webp)
In a recent case, the Kolkata Bench of the Debt Recovery Appellate Tribunal (DRAT) dismissed the appeal of UCO Bank, holding that any equitable mortgage created in favour of the Bank after execution of Gift Deed cannot be a valid mortgage.
UCO Bank, the Appellant filed appeal for recovery of Rs.7,42,27,221.00 against the Defendants No. 1 to 3 and to bring the mortgaged properties of the O.A. for sale and appropriate the proceeds towards the certificate debt. The Respondents No. 2 and 3 availed credit facilities from the Appellant Bank against execution of various documents and creation of mortgage in the year 2006 while the mortgage created by Respondents No. 1 to 3 in favour of Respondent No. 7, State Bank of India, was in the year 2010, hence the charge over the secured assets accrued in favour of the Appellant Bank and not upon the Respondent No. 7, State Bank of India.
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