Transfer of Property Act, 1882:
ss. 54 and 58 - Mortgage of land by allottee - Necessity of showing
complete/good title and depositing of all the documents of title - Land allotted to a Company for setting up an industrial unit - Allotment letter issued to
Company - 50% of the total cost deposited by company - Agreement between
the Industrial Corporation and the Company stipulating that on full payment
of entire consideration amount, sale deed would be executed and registered
in the name of company - Company permitted to mortgage the land to any scheduled bank to obtain financial assistance to the project - Company
obtaining loan by mortgaging land with the bank on the basis of allotment
letter and the said permission - Validity of mortgage - HELD: There is no
clear authority on the question as to whether in absence of any title deed,
the property can be a subject matter of mortgage - Besides, the effect of an
admission by an authorized representative of the State having regard to the rules of executive business or otherwise vis-a-vis the appellant-Bank also
requires consideration - Keeping in view the importance of the issues, the
questions: whether for satisfying the requirement of s.58(f) of the Act, it was
necessary to deposit documents showing complete title or good title and
whether all the documents of title to the property were required to be deposited; and whether in all such cases, the property should have been
acquired by reason of a registered document, require consideration by a
larger bench so that an authoritative pronouncement can be made thereupon.