(1) No
property once mortgaged may be mortgaged or transferred again, in
duplication, to other 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 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.
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Provided that a fine in excess of one hundred thousand rupees
shall not be imposed irrespective of the sum of 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).