Transfer of Property Act, 1882 · Chapter IV: Of Mortgages of Immoveable Property and Charges · Priority
Section 78: Postponement of prior mortgagee
In plain words
If an earlier lender's fraud, misrepresentation or gross neglect leads someone else to lend on the same property, the earlier lender loses priority to the later one.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
Where, through the fraud, misrepresentation or gross neglect of a prior mortgagee, another person has been induced to advance money on the security of the mortgaged property, the prior mortgagee shall be postponed to the subsequent mortgagee.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 78
No Supreme Court judgment in our database cites this section yet.