528 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
2. A mortgagee making a subsequent advance to the mortgagor, shall not acquire priority in respect of such subsequent advance over an intermediate mortgagee, whether he makes the advance with or without the knowledge of the intermediate mortgagee.
Section 79
This Section forms an exception to the second rule laid down in Section 93.
Under Section 79. A subsequent mortgagee having notice of the prior mortgage is postponed in respect of any subsequent advance if the prior mortgage is made to secure future advances and the subsequent advance does not exceed the maximum.
Right of Mortgagee to Marshalling
Section 81.
Section 82.
Question of Marshalling
1. This arises when two or more properties are mortgaged to two different mortgagees in such a way that both properties are subject to the mortgage rights of one mortgagee while only one is subject to the mortgage rights of the other.
Illus.
A is the owner of two estates—Whiteacre and Blackacre. A mortgages Whiteacre and Blackacre to B and thereafter mortgages Blackacre to C.
The position that arises is this. B has a mortgage over Whiteacre as well as Blackacre. C has a mortgage over Blackacre only. From the standpoint of realizing the mortgage money B has a right to sell both Whiteacre as well as Blackacre. While C has a right to sell only Blackacre.
If B were allowed to exercise his rights as a mortgagee it would result in prejudice to the rights of C.