If a person mortgaged a property, belonging to others, as collateral security for advancement of loan, whether the original owner has only remedy to invoke the jurisdiction of the DRT or he has independent right to approach the Civil Court to get declaration? – Ankur Goyal HUF through its Karta Shri Ankur Goyal Vs. Corporation Bank and Anr. – Punjab and Haryana High Court

Hon’ble Punjab and Haryana High Court held that in the case in hand, plaintiff is claiming ownership of property on the basis of registered sale deeds in favour of plaintiff and after sale of the property, the vendor was left with no right, title or interest in the property. The vendor could not mortgage the property subsequently by way of collateral security in the year 2016 since the same was already sold in the year 2014. So, the question whether the suit property mortgaged is the result of collusion between the defendants or the result of fraud, can only be determined by the Civil Court after recording of the evidence and not by the DRT.

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