Question

A property is mortgaged to 'A' for ₹50,000 and then to 'B' for ₹30,000. 'A' then advances a further ₹20,000 to the mortgagor. Under the Transfer of Property Act, does 'A' have priority over 'B' for the subsequent ₹20,000?

Q: Answer-A property is mortgaged to 'A' for ₹50,000 and then to 'B' for ₹30,000. 'A' then advances a further...

Section 93 of the TPA which was inserted by the Amending Act of 1929, explicitly states that a prior mortgagee A cannot, in the absence of a contract to the contrary, tack a subsequent advance so as to acquire priority over an intermediate mortgagee B of whom they had notice.