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Section56
The Transfer of Property Act, 1882

Marshalling by subsequent purchaser

In force From 01 Jul 1882 Act 4 of 1882 As on 15 Oct 2026

Act 4 of 1882 Ministry Law and Justice Enacted 17 Feb 1882 In force 01 Jul 1882

Section 56 of the Transfer of Property Act, 1882 deals with marshalling by subsequent purchaser. If the owner of two or more properties mortgages them to one person and then sells one or more of the properties to another person, the buyer is, in the absence of a contract to the contrary, entitled to have the mortgage-debt satisfied out of the property or properties not sold to him, so far as th The Act came into force on 01 Jul 1882.

1[56. Marshalling by subsequent purchaser.-- If the owner of two or more properties mortgages them to one person and then sells one or more of the properties to another person, the buyer is, in the absence of a contract to the contrary, entitled to have the mortgage-debt satisfied out of the property or properties not sold to him, so far as the same will extend, but not so as to prejudice the rights of the mortgagee or persons claiming under him or any other person who has for consideration acquired an interest in any of the properties.]

Section 56, The Transfer of Property Act, 1882 (Act 4 of 1882).

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. J. P. Builders vs A. Ramadas Rao

    Supreme Court of India 22 Nov 2010 Binding (Supreme Court) Reportable

    Court's Decision & Legal Precedent

    In a suit for specific performance of a property sale agreement, the plaintiff must establish continuous readiness and willingness to perform his obligations from the date of contract to the date of decree through conduct, part-payment, and financial capacity. Readiness refers to financial capacity while willingness refers to conduct of the plaintiff. When a contract involves obtaining clearance from a third party (such as a bank) for release of mortgaged property, such obtaining of clearance is an incidental and implied covenant on the vendor's part and does not make the contract contingent or impossible to perform. The equitable doctrine of marshalling under Section 56 of the Transfer of Property Act, 1882 is available to a decree holder in a suit for specific performance to ensure that the mortgagee exhausts its remedy from other properties of the mortgagor before proceeding against the property sold to the subsequent purchaser, provided such application does not prejudice the mortgagee's rights. A pure question of law can be raised for the first time at the appellate stage even if not specifically pleaded at trial, particularly when larger relief was prayed in the plaint.

    On this section: Provides right of subsequent purchaser to claim marshalling - when owner mortgages multiple properties to one person and sells one to another, buyer entitled to have debt satisfied from unsold properties first; applied to protect buyer's interest in specific performance decree

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Questions about Section 56

What have the courts held on Section 56 of the Transfer of Property Act?

J. P. Builders vs A. Ramadas Rao (22 Nov 2010) is the leading judgment on this section among those set out below: Provides right of subsequent purchaser to claim marshalling - when owner mortgages multiple properties to one person and sells one to another, buyer entitled to have debt satisfied from unsold properties first; applied to protect buyer's interest in specific performance decree.

How do I find court cases under Section 56 of the Transfer of Property Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: TP Act 56, section 56 TP Act, section 56 of the Transfer of Property Act. People searching for it also type s 56 tpa. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with J. P. Builders vs A. Ramadas Rao (22 Nov 2010).

When did Section 56 of the Transfer of Property Act come into force?

Section 56 of the Transfer of Property Act, cited as TP Act 56, came into force on 01 Jul 1882, having been enacted on 17 Feb 1882. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.