{"id":161031,"date":"2009-03-23T00:00:00","date_gmt":"2009-03-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-passive-infra-projects-vs-state-of-haryana-others-on-23-march-2009"},"modified":"2019-03-15T10:08:51","modified_gmt":"2019-03-15T04:38:51","slug":"ms-passive-infra-projects-vs-state-of-haryana-others-on-23-march-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-passive-infra-projects-vs-state-of-haryana-others-on-23-march-2009","title":{"rendered":"M\/S Passive Infra Projects &#8230; vs State Of Haryana &amp; Others on 23 March, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">M\/S Passive Infra Projects &#8230; vs State Of Haryana &amp; Others on 23 March, 2009<\/div>\n<pre>Civil Writ Petition No.4563 of 2009                      :1:\n\nIN THE HIGH COURT OF PUNJAB AND HARYANA AT\n                 CHANDIGARH\n\n\n                    DATE OF DECISION: MARCH 23, 2009\n\n\n\nM\/s Passive Infra Projects Private Limited, Vaishali, Pitampura, Delhi\n\n                                                             .....Petitioner\n\n                           VERSUS\n\nState of Haryana &amp; others\n\n                                                              ....Respondents\n\n\n\nCORAM:- HON'BLE MR.JUSTICE RANJIT SINGH\n\n1. Whether Reporters of local papers may be allowed to see the judgement?\n2. To be referred to the Reporters or not?\n3. Whether the judgment should be reported in the Digest?\n\n\n\nPRESENT:            Mr.Deepender Singh, Advocate,\n                    for the petitioner.\n\n                           ****\n\nRANJIT SINGH, J.\n<\/pre>\n<p>             Petitioner-Company is sanctioned financial assistance of<\/p>\n<p>Rs.970 lacs by Small Industrial Development Bank of India (SIDBI).<\/p>\n<p>The petitioner-Company, as a security, wished to mortgage the<\/p>\n<p>immovable property of the Company at Village Hassangarh, District<\/p>\n<p>Rohtak. The Company accordingly offered its property for equitable<\/p>\n<p>mortgage as per Section 58 (f) of Transfer of Property Act by deposit<\/p>\n<p>of original title deeds. The petitioner-Company wrote a letter for<\/p>\n<p>entering the mutation on the basis of mortgage by deposit of title<\/p>\n<p>deeds in favour of         SIDBI. Respondent No.2 did not enter the<br \/>\n<span class=\"hidden_text\"> Civil Writ Petition No.4563 of 2009               :2:<\/span><\/p>\n<p>mutation. Even      SIDBI wrote to respondent No.2 for entering<\/p>\n<p>mutation on the basis of mortgage by deposit of title deeds. The copy<\/p>\n<p>of the order passed by this Court was enclosed with the request letter<\/p>\n<p>but respondent Nos.2 and 3 refused to enter mutation of the<\/p>\n<p>mortgage. The petitioner-Company has, thus, filed the present writ<\/p>\n<p>petition, seeking direction in the nature of mandamus to respondent<\/p>\n<p>Nos.2 and 3 to enter mutation in the revenue record without insisting<\/p>\n<p>the petitioner to execute registered mortgage deed of the immovable<\/p>\n<p>properties, which are sought to be mortgaged by deposit of title<\/p>\n<p>deeds (equitable mortgage).\n<\/p>\n<p>           Since the petitioner rely upon a judgment passed by<\/p>\n<p>Division Bench, which squarely covers the case of the petitioner,<\/p>\n<p>there is no need to issue notice to the respondents and the writ<\/p>\n<p>petition can be disposed of in limine at this stage only.<\/p>\n<p>           Learned counsel for the petitioner refers to order<\/p>\n<p>Annexure P-6 passed by Division Bench of this Court where similar<\/p>\n<p>direction has been issued. The Division Bench of this Court, after<\/p>\n<p>referring to number of judgments, has held as under:-<\/p>\n<blockquote><p>           &#8220;We are convinced that the mortgage which was created<\/p>\n<p>           in favour of the bank by deposit of title-deeds and this<\/p>\n<p>           transaction did not require registration. The provisions of<\/p>\n<p>           the Registration Act and the Stamp Act did not apply.&#8221;<\/p>\n<\/blockquote>\n<p>The Division Bench has further held as under:-\n<\/p>\n<blockquote><p>           &#8220;We are of the view that an equitable mortgage is created<\/p>\n<p>           by deposit of title-deeds and not through any written<\/p>\n<p>           instrument. Simple pledge of the title-deeds to the bank<\/p>\n<p>           as securing creates an equitable mortgage, therefore,<br \/>\n<span class=\"hidden_text\"> Civil Writ Petition No.4563 of 2009                 :3:<\/span><\/p>\n<p>           there is never an instrument of deposit of title-deed\/<\/p>\n<p>           equitable mortgage. The petitioner simply went to the<\/p>\n<p>           bank and handed over the title-deeds of their respective<\/p>\n<p>           properties. This act was enough to create a mortgage as<\/p>\n<p>           envisaged under Section 58(f) of the Transfer of Property<\/p>\n<p>           Act. Quite often a memorandum is               simply a written<\/p>\n<p>           record of the pledge. The memorandum itself is not an<\/p>\n<p>           instrument of mortgage. The judgment of Karnataka High<\/p>\n<p>           Court has considered this aspect in detail and come to<\/p>\n<p>           the conclusion that a memorandum                 evidencing a<\/p>\n<p>           transaction of equitable mortgage neither creates a<\/p>\n<p>           mortgage nor establishes an equitable mortgage created<\/p>\n<p>           by   the   deposit   of   title-deeds,   therefore,    such   a<\/p>\n<p>           memorandum was not compulsorily registerable.&#8221;<\/p><\/blockquote>\n<p>           The writ petition was accordingly allowed and direction<\/p>\n<p>was issued to enter mutation in favour of the Bank regarding the<\/p>\n<p>properties, which stand equitable mortgaged in favour of the Bank<\/p>\n<p>concerned by deposit of title deeds. The present writ petition is<\/p>\n<p>squarely covered by the ratio of law laid down in the above noted<\/p>\n<p>judgment passed by Division Bench of this Court.<\/p>\n<p>           Accordingly, direction is hereby issued to the respondents<\/p>\n<p>to enter mutation in favour of the Bank regarding the properties which<\/p>\n<p>stand equitable mortgaged in favour of       SIDBI by deposit of title<\/p>\n<p>deeds.\n<\/p>\n<\/p>\n<pre>March 23, 2009                                  ( RANJIT SINGH )\nkhurmi                                              JUDGE\n <\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court M\/S Passive Infra Projects &#8230; vs State Of Haryana &amp; Others on 23 March, 2009 Civil Writ Petition No.4563 of 2009 :1: IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH DATE OF DECISION: MARCH 23, 2009 M\/s Passive Infra Projects Private Limited, Vaishali, Pitampura, Delhi &#8230;..Petitioner VERSUS State of Haryana [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-161031","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Passive Infra Projects ... vs State Of Haryana &amp; 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