Beyond Priority: Bombay HC Invalidates Subsequent Charge Created In Violation of Prior Mortgage Deed

Omkara Asset Reconstruction Pvt. Ltd. Vs J.C. Flowers Asset Reconstruction Pvt. Ltd. (Bombay High Court) Recently, the Division Bench of the Bombay High Court (the “Court“), in the matter of Omkara Asset Reconstruction Pvt. Ltd. V. J.C. Flowers Asset Reconstruction Pvt. Ltd. (2025:BHC-OS:7579-DB), held that a subsequent mortgage created by a borrower in violation of explicit covenants in a prior mortgage deed is rendered void at the instance of the first mortgagee. This comes as a highly significant ruling as it provides clarity on the enforceability of negative covenants in mortga...