Define the term 'Puisne Mortgage'.
CS Executive · Economic and Commercial Laws · PYQS · June 2018
Define the term 'Puisne Mortgage'.
Answer & Explanation:
Where the mortgagor, having mortgaged his property, mortgages it to another person to secure another loan, the second mortgage is called a 'puisne mortgage'. For example, where A mortgages his house worth ₹ one lakh to B for ₹ 40,000 and mortgages the same house to C for a further sum of ₹ 30,000, the mortgage to B is first mortgage and that to C the second or 'puisne mortgage'. C is the 'puisne mortgagee', and can recover the debt subject to the right of B, the first mortgagee, to recover his debt of ₹ 40,000 plus interest.
Topics: Property Law
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