equitable mortgage in favor of permanent fund company incorporated under companies act. what are the rules ?

Question

one permanent fund company filed a suit claiming equitable mortgage over immovable property which was purchased by others without notice of any previous mortgage claimed by the company. We know that the said mortgage is false which was concocted by the plaintiff company and the vendors of the purchasers.Since the plaintiff is a limited company constituted under the companies act, what are the documents it should have obtained? Are there any special provisions governing permanent fund companies for accepting equitable mortgages? How to defeat the false claim of the plaintiff.

Answer 1

Go through the memorundum and article of the company. Find out if there is any clause reg securing the assets of the company. As registration of nidhi company is a state act, contact the Registrar and ascertain the rules of mortgage in its favour. Mostly it should say registered mortgage only.

I think instead of fighting this battle, you should look at opportunity of initiating legal action against the Nidhi company as one of its consituents. Explore this option.

Then try to combine both the cases by filing necessary petition.