Section 452: Not to be mortgaged or transferred in duplication

1) No property once mortgaged may be mortgaged or transferred again, in duplication, to another person.

2) If a person mortgages a property in duplication in contravention of sub-section (1), the deed registered at an earlier date shall be valid and the subsequent deed shall ipso facto be void.

3) If a deed becomes void pursuant to sub-section (2), the amount of a creditor who knowingly executes the deed in duplication shall lapse, and that of a creditor who executes it without knowledge of duplication shall be equivalent to an unsecured bond (Kapali).

4) Notwithstanding anything contained in sub-section (1), in the event of the execution of deeds in duplication, and the first deed providing for any kind of mortgage and the second deed providing for the transfer of title, the transferee shall be entitled to establish the title by making repayment of the loan in accordance with the first deed of mortgage.

5) One who executes a deed in duplication as mentioned in this Section shall be liable to the punishment with a fine of a sum that is equal to the amount in controversy, if any, indicated in the second deed, to the amount indicated in the earlier deed, if such amount in controversy is not indicated in the second deed, and a sum not exceeding twenty-five thousand rupees if no such amount is indicated even in the earlier deed.

Provided that a fine in excess of one hundred thousand rupees shall not be imposed, irrespective of the amount in controversy.

6) Notwithstanding anything contained elsewhere in this Section, in the event of the execution of the deed of mortgage in duplication, possessory right shall be established within two years from the date of the first deed if it provides for mortgage with possession (Bhogbhandhaki) and within two years from the date of entitlement to the possessory right if the first deed provides for mortgage without possessory right (Drishtibandhaki).

7) In the event of a failure to establish the possessory right pursuant to sub-section (6), the creditor’s amount shall be equivalent to an unsecured bond (Kapali).