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.
CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES · Priority
Section 78: Postponement of prior mortgagee
The Transfer of Property Act, 1882
Questions on this section
1 question in 5 of our papers cite Section 78.