Page 287 - Bahrain Gov Annual Reports (I)_Neat
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Land dept.
valid only during the life of the holder of
the gift, eventually the property should revert
to the Euler,
Mortgages on property. A proclamation was issued
after discussions with representatives of the public
stating that in future no mortgages of immovable
property would be recognised in the courts unless the
holder of the mortgage was in possession of a Govt,
title deed for the mortgaged property.
At the end of the year a meeting was held to dis
cuss the legal procedure in the case of mortgages.
According to Moslem law a mortgage holder who has not
taken possession of the property has no preferred
claim if the owner of the property dies or becomes
bankrupt. The opinion of the meeting was that such
matters were entirely commercial and should not be
referred to the Shera but should be settled by the
Civil Court. The practice of the Bahrain Court is
to admit the holder of a mortgage who is in possession
of title deeds as a preferred creditor in bankruptcy
oases.