MOD stands for Memorandum of Deposit of Title Deed, which is a document that records the deposit of title deeds of a property with a lender as a security for a loan. MOD is also known as an equitable mortgage or mortgage by deposit of title deeds.
The answer to whether MOD should be registered or not depends on the state laws and the nature of the document. According to the Transfer of Property Act, 1882, a mortgage by deposit of title deeds does not require registration. However, sometimes, a memorandum accompanies the deposit of title deeds, which contains the terms and conditions of the loan agreement. In such cases, the memorandum may or may not require registration, depending on whether it is an integral part of the transaction or a mere record of an existing fact.
According to the Supreme Court’s judgment in United Bank of India vs. Lekharam Sonaram & Co. (1965), if the memorandum is an integral part of the transaction and creates rights and liabilities between the parties, it requires registration under Section 17 of the Registration Act, 1908. However, if the memorandum is a mere record of an existing fact and does not create any rights and liabilities, it does not require registration.
Therefore, to determine whether MOD should be registered or not, one has to look at the contents and intention of the memorandum and the state laws. Some states, such as Maharashtra, Karnataka, Tamil Nadu, etc., have made it mandatory to register MOD for all types of loans. Other states, such as Delhi, Uttar Pradesh, etc., have made it optional to register MOD depending on the nature and amount of the loan. The registration fee and stamp duty for MOD also vary from state to state.
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Should MOD be registered?
ganapathyhariharan
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2023-09-24T18:58:19+00:00 2023-09-25T11:34:53+00:00Comment
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