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Issues:
1. Interpretation of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. 2. Validity of the equitable mortgage created prior to property purchase. 3. Entitlement to protection against dispossession under interim orders. 4. Consideration of settlement negotiations with the bank. Interpretation of the Securitisation Act: The case involves a property purchased by the petitioner and his son-in-law, which was later found to have an existing mortgage created by the original owner as security. The petitioner argued that the Act could not be applied retrospectively to the equitable mortgage created before their purchase. Despite claims of being misled about the property's title, the court noted that the Act's provisions could not be bypassed merely on grounds of alleged misrepresentation. Validity of Equitable Mortgage: The petitioner contended that the equitable mortgage, existing before their purchase, should not affect their rights over the property. However, the court found that the petitioner's claims of being deceived by the seller did not justify overriding the bank's rights established through the mortgage. The court emphasized that the petitioner's allegations of fraud did not negate the bank's legal entitlement under the mortgage. Protection Against Dispossession: The court considered the interim order preventing the petitioner's dispossession from the property. While acknowledging the petitioner's attempts to challenge the Act's validity previously, the court highlighted that such challenges did not automatically warrant protection from dispossession. The court noted that the petitioner's failure to secure a specific stay against dispossession in a prior application weakened their claim for continued protection. Settlement Negotiations with the Bank: In light of the petitioner's plea for settlement with the bank, the court granted a temporary extension of protection against dispossession to facilitate negotiation. The court allowed a 15-day period for potential settlement discussions between the petitioner, borrower, and the bank. However, the court made it clear that if no settlement was reached within the specified timeframe, the protection against dispossession would automatically cease, emphasizing the need for timely resolution or face vacating the interim order. In conclusion, the judgment delves into the complexities of property rights, mortgage validity, and legal entitlements under the Securitisation Act. It underscores the importance of upholding legal provisions while also providing opportunities for negotiation and settlement to resolve disputes effectively.
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