Legal Question in Banking Law in India

14.11.2014

Dear Sir / Madam,

Yes, prior written permission from the first mortgagee bank is necessary as per law.

Regards,

Permission for second or subsequent mortgage from the first or prior mortgagee is not a must as per law. But if the first mortgage deed contains a covenant that the mortgagor shal not create any charge or mortgage without the consent of the mortgage or generally state that he would not create any charge etc, and if he creates a second or subsequent mortgage without the consent of the prior mortgagee, the latter can treat such act as default and Sue the mortgagor for realisation of the loan notwithstanding there was some period fixed before the loan has become overdue.