M/S Midas Electronics Pvt. Ltd. vs Small Industries Development … on 9 May, 2016

2. The lessee company sought for a permission to mortgage the subject
property and on September 20, 2007 i.e. a day after the perpetual lease-

WP(C) 2089/2015 Page 1 of 10
deed was executed, the competent authority of the State of Himachal
Pradesh conveyed approval for the property to be mortgaged, but wrote in
the letter that the plot demise in perpetuity cannot be sold without the prior
permission of the lessor; a condition which we find conflicts with the right
conferred in favour of the mortgagee inasmuch as if the mortgagee cannot
enforce the mortgage by requiring the mortgaged property to be sold, where
would there be a mortgage? We shall dwell on this aspect a little later.

Source: Indian Kanoon

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