AI Overview...
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Affidavit and Security Valuation - An affidavit supporting the sale of immovable property cannot be regarded as a valuable security. The affidavit primarily serves as a statement of security particulars and valuation, but it does not constitute a transfer of ownership or a security interest equivalent to a formal security instrument. Courts have emphasized that such affidavits do not replace legal security documents and cannot be treated as valuable security ICICI Bank LTD. VS SIDCO Leathers LTD. - Supreme Court.
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Nature of Security in Property Transactions - Creating security on immovable property, such as through mortgage or equitable mortgage, involves formal legal instruments, and mere affidavits or statements do not suffice to establish a secured interest. The law requires actual transfer of rights or registered documents to constitute valid security, not affidavits alone Auroshikha Vinimay Pvt. Ltd. VS Kai Commercial Pvt. Ltd. - Calcutta, Mathew Varghese VS M. Amritha Kumar - Supreme Court.
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Sale of Immovable Property and Contractual Rights - A contract or agreement for sale of immovable property, in itself, does not create a proprietary interest or security. Such contracts are considered agreements rather than transfer of ownership unless registered and executed as per law. The courts have held that mere agreement or affidavit does not amount to a valid sale or security interest Punjab National Bank VS Sanchaita Investment - Calcutta, Mohan Bhandar A Partnership Firm Nageetha Complex VS Vijaya Bank Kuvempunagar Branch Mysore, Represented By Its Branch Manager - Karnataka.
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Legal Principles on Security and Sale - The transfer of property rights or security interests requires compliance with statutory provisions, such as registration, creation of mortgage, or formal transfer documents. Affidavits, though useful for evidence or valuation, do not substitute these formalities and cannot be treated as valuable security Karnataka Agricultural Implements And Allied Industrial Co-Operative Society Ltd. VS Karnataka State Financial Corporation - Karnataka, State Bank of India VS O. L. of New Gujarat Synthetics Ltd. - Gujarat.
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Implication for Valuation and Security Claims - Courts have clarified that affidavits and statements supporting security or sale do not have the legal standing of security instruments. They are not equivalent to security documents like registered mortgages or sale deeds, and thus, cannot be treated as valuable security for the purpose of enforcement or recovery proceedings JKS Infrascture Private Limited VS Edelweiss Asset Reconstruction Co. Ltd. - Bombay, ORIENTAL BANK OF COMMERCE VS STATE OF UTTAR PRADESH - Allahabad.
Analysis and Conclusion:
An affidavit supporting the sale or security of immovable property is primarily a statement or evidence rather than a legal security instrument. It cannot be equated with a valuable security such as a registered mortgage or sale deed. Legal security interests in immovable property necessitate formal documentation and compliance with statutory registration requirements. Therefore, affidavits and support statements, while useful for evidentiary purposes, do not constitute valuable security under law.
Search Results for "Affidavit and Support of a Sale of Immovable Property Cannot be Treated as a Valuable Security"
2018 0 Supreme(Kar) 1236 • India - Karnataka
ARAVIND KUMAR
over possession of premises which are now in occupation of three petitioners which was at behest of debtor - On same day one more affidavit ... Section 25(aa) - Transfer of Property Act - Section 65A – Physical possession of secured asset - Recovery of Debts - Transfer of Property ... otherwise - Whether Section 14 of SARFAESI Act would do away with mandate of following principles of natural justice - Tenants of property ... At the time of borrowing the amounts, debtor had secured said amounts by offering the immovable p....
2013 0 Supreme(Bom) 452 • India - Bombay
J.P.DEVADHAR, M.S.SANKLECHA
, cannot be attached by initiating execution proceedings under CPC. - Moreover, neither in the affidavit in reply to the Chamber ... is contrary to the facts on record and, hence, cannot be accepted. ... suit property and thus the sale is not restricted only to the extent of equity of redemption. ... In the meantime, the respondent No. 2 by a sale agreement dated 10th January 2008 had agreed to sell certain premises to the appellant in the building constructed by the respondent No. 2 o....
2006 5 Supreme 148 • India - Supreme Court
S.B.SINHA, P.K.BALASUBRAMANYAN
— While enacting a statute, the Parliament cannot be presumed to have taken away a right in property — Right to property is ... He, in such a situation, may state in his Affidavit of Proof, the particulars of the security and value at which he assesses the ... Hence, the impugned judgment cannot be sustained. It is set aside accordingly. The appeal is allowed. ... Priority of rights created by transfer — Where person purports to create by transfer at different ti....
2008 0 Supreme(Guj) 469 • India - Gujarat
K.A.PUJ
and to declare that Respondent Nos. 4 to 13 are in unauthorised and illegal occupation of land situate - Held, When mortgage was created ... security on the immovable property to secure the amount due and payable by the Company in liquidation to the applicant-Bank. ... In the circumstance it cannot be said that the lease of immovable property determined by efflux of initial period of 15 years limited by the lease as the lease did not limit it to 15 years only. ... #HL....
2008 0 Supreme(All) 337 • India - Allahabad
SUSHIL HARKAULI, SUDHIR AGARWAL
by Bank, by providing facility to customers to keep his valuables in safe and secured place at Bank—And Locker is only a place specified ... ” to attract tax liability under Act—There is no “sale” element involved in matter—And, in effect, it is only a service, rendered ... under Act—Further, there is no transfer of right to use Lockers—But only a licence to use, and does not answer requirement of “sale ... or commissioning of any movable or immovable property. ... ... (26) "immovable....
2015 0 Supreme(Cal) 708 • India - Calcutta
SOUMEN SEN
Whether there was a concluded contract for sale of the property? Ratio Decidendi: 1. ... The defendant also claimed that there was a concluded contract for sale of the property and that the plaintiff was bound by the said ... license fees and continued to occupy the property. ... for sale of immovable property. ... There is no requirement of law that an agreement or contract of sale of immovable property#....
2021 0 Supreme(Kar) 163 • India - Karnataka
SREENIVAS HARISH KUMAR, P. N. DESAI
Karnataka State Financial Corporation i.e. first defendant on security of suit property, and a sum from Karnataka Central Co-operative ... Bank , second charge was created on suit property for this loan - first defendant exercised statutory power under Section 29 of ... , suit property was auctioned but purchaser defaulted to deposit the money and therefore the sale was cancelled - Again sale was ... What this Article contemplates is that the mortgagee should have sol....
1984 0 Supreme(Cal) 423 • India - Calcutta
A.K.Sen, S.N.Sanyal
The court further held that a contract of sale of an immovable property of itself does not create such an interest in the property ... H Skinner (A.I.R. 1929, P.C. 269), stating that it is no authority for the proposition that a contract of sale of an immovable property ... it is held that such a property constitutes in some way a right, title, or interest in an immovable property valued at more than ... Chakrabort....
2014 0 Supreme(SC) 96 • India - Supreme Court
A.K.PATNAIK, FAKKIR MOHAMED IBRAHIM KALIFULLA
SARFAESI Act - Section 13 - Security Interest (Enforcement) Rules, 2002 - Rules 8 and 9 - Immovable property ... - Payment of amount - Respondents created an EQUITABLE MORTGAGE in favor of Respondent Bank by depositing title deeds of their property ... to Appellant - Further Respondent Bank shall bring property for auction afresh following provisions - Thereafter from and out of ... Secondly, when such a SECURED ASSET of an immovable property is brou....
2019 0 Supreme(Mad) 2859 • India - Madras
R.THARANI
purchased property for valuable consideration and constructive possession was taken by financial Corporation plaintiff is not having ... jointly belonged by virtue purchase by them jointly as partners through a registered sale deed got first schedule property in oral ... - property was already sold out second respondent - Sale proceedings is already over and there no question of repaying loan amount ... The first defendant brought the primary and collateral security f....
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