In Brief
A bank (SBI) auctioned a mortgaged residential property in Telangana and sold it to a third-party purchaser who paid the price and took possession. The High Court later set aside the sale, holding the mortgage invalid because the mortgagor's waiver of his rights under the Transfer of Property Act was not registered. The Supreme Court allowed the appeals. It held the High Court erred by raising the mortgage validity issue for the first time at a late stage, and failed to consider that the mortgage had been acted upon to obtain the loan and that other properties under the same mortgage deed had reached finality. The Court emphasised the innocent third party's rights, who had obtained a loan and invested in renovations since March 2016.
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