TMI Blog1992 (5) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... was issued to her on October 9, 1980, with respect to various properties including "three house properties at Perumal South Street, Nagapattinam _ T. S. Nos. 1016, 525A and 525B". The appellant in her reply dated January 29, 1981, to the notice under section 6(1) stated as under : " The properties mentioned in the annexure to notice under section 6(1) with Serial Nos. 1 to 11 in the annexure to the notice referred to the above except the property at T. S. No. 1284, Nagapattinam, have been acquired by my husband, Shri N. Subburaja Nadar, in my name out of his funds. The source for the same has been properly explained by him in his income-tax and wealth-tax assessments. " The above statement relates to the immovable properties. Her plea r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Competent Authority for decision afresh after hearing Smt. S. Krishnammal and the bank. The Competent Authority after hearing the parties has decided the matter afresh, vide order dated October 15, 1991. The three houses at Perumal South Street, Nagapattinam, bearing T. S. Nos. 1016, 525A and 525B, have again been forfeited. It is against this order that the present appeal has been filed by the bank. This order of the Competent Authority has not been assailed by Smt. S. Krishnammal. Learned counsel for the appellant has argued that three houses detailed above had been purchased by Smt. S. Krishnammal on June 10, 1959, and July 16, 1962, and were mortgaged with the bank on March 22, 1974, and August 22, 1974. The bank has filed three ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans raised by her husband and her son. The mortgage was effected in favour of the bank and not in favour of an individual. There is nothing to suggest that the mortgage of these properties in favour of the bank in 1974 was mala fide. Under the circumstances, it will be proper to hold that the mortgage of these properties in favour of the bank in 1974 was bona fide. The mortgage in favour of the bank was also for consideration inasmuch as the same had been effected to secure the loans advanced by the bank in favour of the husband and son of the owner. In other words, the mortgagee of the three houses in favour of the bank which came into existence in 1974 shall be covered by the term "transferee in good faith for adequate consideration". The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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