I. Double Assignment of Actionable Claim - Sec 130-134 Transfer of Property Act[Debts]

This is most relevant for banking.

Law:

Sec 130 TPA: Transfer of actionable claim is complete upon execution of written instrument, vesting all rights and remedies in transferee.

But title is perfected against the debtor only by giving formal written notice to the debtor. CERSAI registration is for priority against other secured creditors, not for perfecting title against debtor.

Rule of Priority - Dearle v Hall Rule adopted in India:

If there are multiple assignments, the one whose notice reaches the debtor first generally has priority, provided second assignee had no notice of first assignment.

For this rule to be invoked four things must happen: there must be a trustee or fund holder, a person who has beneficial interest, assignor must have assigned to two successive assignees, and later assignee must not have had notice of earlier assignment.

Case Laws on Actionable Claims:

1. Dearle v Hall (1828) 3 Russ 1 - Foundation Case
Held that individual who gave notice first had better equity and took priority over earlier unnotified assignees. Indian banks follow this - e.g., assignment of LIC policy must be registered with LIC to be effective against third parties.

2. Santuram Hari Vs. Trust of India Assurance Co. - On Sec 130 TPA
Core issue was interpretation of Sec 130, that transfer of actionable claim is complete upon written instrument, vesting all rights in transferee. Court analyzed whether assignment was absolute or security interest - under Indian law Sec 130 does not distinguish.

3. Khardah Company Ltd Vs. Raymon & Co. (India) Pvt Ltd AIR 1962 SC 1810 - 5 Judge Bench
Held assignment of contract might result in transfer either of rights or obligations. Sec 130 applies to actionable claim. Assignment of debts by bank to another banking company is not transfer of property, but courts examine intention.

4. Bharat Nidhi Ltd Vs Takhatmal - SC
Supreme Court clearly stated actionable claim may be transferred u/s 130 TPA. If not in writing, equitable assignment can be gathered from wording.

Banking Practice:
Banks take assignment of Life Insurance Policies, Supply Bills, Book Debts. To protect interest, bank (assignee) must give notice to principal debtor e.g., government department or LIC. If you don't give notice, debtor paying to original creditor is valid discharge.

II. Double Assignment of Immovable Property - Sec 48 TPA - Doctrine of Priority

Section 48 says: Where a person purports to create by transfer at different times rights in or over same immoveable property, and such rights cannot all exist together, each later created right shall, in absence of special contract, be subject to rights previously created.

In circumstances where transferor has executed multiple transactions involving same property, charge by first mortgagee prevails over second.

Doctrine of Priority under Section 48 TPA: A person cannot transfer a title superior to rights which he actually possesses. If transferor deals with same immovable property in favour of more than one party, each subsequent transferee's rights are subordinate to those created by earlier transaction.

Case Laws on Property:

1. ICICI Bank Ltd Vs SIDCO Leathers Ltd & Ors (2006) 10 SCC 452 - Supreme Court
Held under doctrine of priority, the charge by the mortgagee prevails over charge of second. Even if second mortgage registered earlier, first mortgage in time wins if without notice.

2. Ram Saran Lall Vs Domini Kuer AIR 1961 SC 1747
On double sale - first sale deed executed, second sale deed executed later. SC held priority is by date of execution, not registration, unless second buyer is bona fide purchaser without notice.

III. How Banks Resolve Conflict

1. First in time prevails: Sec 48 for property.
2. First to give notice to debtor prevails: Dearle v Hall for debts, if second assignee bona fide without notice.
3. CERSAI + Sec 26E SARFAESI: For secured creditors, priority decided by CERSAI registration date, not just assignment deed date.
4. Double Assignment by Bank to ARCs: If same loan assigned twice, RBI Master Direction on Transfer of Loan Exposures 2021 says first assignment with full compliance vests; second is void. Bank liable for fraud.

What to do if you are victim:

If you are second assignee / buyer:

• Check if first assignment was registered under CERSAI / ROC and whether you had constructive notice.
• Check whether notice was served to debtor. If first assignee never gave notice, you can claim priority by giving notice first.
• For property, file suit for declaration + cancellation of second transfer, and injunction.