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1 of 9
(S. 57 of TPA)
Under the Guidance of
Submitted by
Madhukar Badiger
Created by
Jagannath R Ramapur
 Eg: Sunny mortgages his properties
at Jayanagar and Cox town to Bobby
and borrows Rs. 50,000. Sunny sells
away the property in Jayanagar to
Abhay. Now Abhay is the owner of
Jayanagar property. Bobby brings an
action to recover the money from
Abhay’s Jayanagar property. Now,
Abhay has the right whereby he
need not pay the amount. As per
Sec. 56, Sunny’s property in Cox
town has to be sold and the
proceeds should be used to pay
back that loan of Rs. 50,000.
 The concept of marshalling can be best understood
by way of examples.
 The more a teacher tries to explain marshalling in
writing, the more a student may get confused. The
concept should be explained orally / live where a
student can clarify his/her doubts then and there.
 You are advised to read the examples / illustrations
given in the text books and understand the concept
by making illustrations
 Marshalling is also a principle that was born out of
equity. Now some of you may be able to understand
why the rule is this way. It is only in the interest of
equity, the buyer is given this kind of advantage.
 Two or more properties should be mortgaged
to a single person.
 At least one of the property must have been
sold to a third person.
 There should be no contract to the contrary
of this rule.
( S. 57 of TPA)
 Black’s Law Dictionary: A claim or liability that
is attached to property or some other right
and that may lessen its value, such as a lien
or mortgage; any property right that is not an
ownership interest. An encumbrance cannot
defeat the transfer of possession, but it
remains after the property or right is
transferred
 There are various fees / taxes to be paid by
the owners of land to authorities or to
persons. For example: municipal tax / land
revenue.
 Sometimes the property is mortgaged and
certain interest has to be paid by the owner
of the land.
 Such ‘liabilities’ over the land are called as
‘encumbrances’.
 Encumbrances affect the calculation of fair
value for a property.
 To avoid this, either the buyer or seller can
apply to the court and deposit certain amount
of money or government securities that
would discharge the property from
encumbrance.
A Special thanks to
for giving the opportunity

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S 56 and s 57

  • 1. (S. 57 of TPA) Under the Guidance of Submitted by Madhukar Badiger Created by Jagannath R Ramapur
  • 2.  Eg: Sunny mortgages his properties at Jayanagar and Cox town to Bobby and borrows Rs. 50,000. Sunny sells away the property in Jayanagar to Abhay. Now Abhay is the owner of Jayanagar property. Bobby brings an action to recover the money from Abhay’s Jayanagar property. Now, Abhay has the right whereby he need not pay the amount. As per Sec. 56, Sunny’s property in Cox town has to be sold and the proceeds should be used to pay back that loan of Rs. 50,000.
  • 3.  The concept of marshalling can be best understood by way of examples.  The more a teacher tries to explain marshalling in writing, the more a student may get confused. The concept should be explained orally / live where a student can clarify his/her doubts then and there.  You are advised to read the examples / illustrations given in the text books and understand the concept by making illustrations  Marshalling is also a principle that was born out of equity. Now some of you may be able to understand why the rule is this way. It is only in the interest of equity, the buyer is given this kind of advantage.
  • 4.  Two or more properties should be mortgaged to a single person.  At least one of the property must have been sold to a third person.  There should be no contract to the contrary of this rule.
  • 5. ( S. 57 of TPA)
  • 6.  Black’s Law Dictionary: A claim or liability that is attached to property or some other right and that may lessen its value, such as a lien or mortgage; any property right that is not an ownership interest. An encumbrance cannot defeat the transfer of possession, but it remains after the property or right is transferred
  • 7.  There are various fees / taxes to be paid by the owners of land to authorities or to persons. For example: municipal tax / land revenue.  Sometimes the property is mortgaged and certain interest has to be paid by the owner of the land.  Such ‘liabilities’ over the land are called as ‘encumbrances’.
  • 8.  Encumbrances affect the calculation of fair value for a property.  To avoid this, either the buyer or seller can apply to the court and deposit certain amount of money or government securities that would discharge the property from encumbrance.
  • 9. A Special thanks to for giving the opportunity