Notice, the making something known to a person of which he was or might be ignorant. Notice is either (1) statutory; (2) actual, which brings the knowledge of a fact directly home to the party; or (3) constructive or implied, which is no more than evidence of facts which raise such a strong presumption of notice that equity will not allow the presumption to be rebutted. [S. 154, I.P.C. and Art. 61(2)(a) const. 56 Indian Evidence Act]
Constructive notice may be subdivided into: (a) where the facts of which actual evidence is supplied give rise to a further enquiry which a man exercising ordinary caution would make equity has added constructive notice of the facts, which that inquiry would have elicited; and (b) where there has been a designed abstinence from inquiry for the very purpose of avoiding notice. See CONSTRUCTIVE NOTICE.
A purchaser with notice may protect himself by purchasing the title of another bona fide purchaser for a valuable consideration without notice; for, otherwise, such bona fide purchaser would not enjoy the full benefit of his own unexceptionable title. If a person, who has notice (except in the case of a charity), sell to another, who has no notice, and is a bona fide purchaser for valuable consideration, the latter may protect his title, although it was affected with the equity arising from notice in the hands of the person from whom he derived it; for otherwise, no man would be safe in any purchase, but would be liable to have his own title defeated by secret equities, of which he could have no possible means of making a discovery, Le Neve v. Le Neve, (1747) Amb 436; 2 W&TLC. The decision of Lord Hardwicke in the great case of Le Neve v. Le Neve certainly went very far to nullify the (English) Middlesex Registry Act of 1708, and the principle of it is not to be applied in the construction of a modern statute; see Re Monolithic Building Co., (1915) 1 Ch 643, where the Court of Appeal held that s. 93 of the (English) Companies (Consolidation) Act, 1908, and now ss. 79-83, and 87 of the (English) Companies Act,1929, avoided an unregistered mortgage as against a subsequent registered incumbrancer, even with express notice.
The principle on which this case was decided has become statutory under the (English) Law of Property Act, 1925, and the (English) Land Charges Act, 1925. See s. 199 of the Law of Property Act, 1925, sub tit. CONSTRUCTIVE NOTICE, and see LAW OF PROPERTY ACT; (Curtain).
The doctrine of constructive trusts has also been narrowed down by the (English) Conveyancing Act, 1911, s.13, reproduced by the (English) Law of Property Act, 1925, s. 112, which provides that a 10s. stamp on a transfer of mortgage does not by itself give notice of a trust; and see also s. 113 (ibid.), which absolves persons dealing in good faith with a mortgagee or with the mortgagor after discharge of the mortgage from any duty to inquire into the trusts of the mortgage money even if he has notice of the trust, and under the (English) Trustee Act, 1925, s. 28, a trustee or personal representative acting for one trust or estate is not in the absence of fraud affected by notice obtained through acting for another.
Subject to the forgoing limitations on the doctrine and effect of notice, a purchaser of a legal estate or equitable interest in land will be affected by every and any right, equity, or incumbrance of which he has actual or constructive notice. As to the length of title in which notice will be imputed, see Re Cousins, (1886) 31 CD 671, and the (English) Law of Property Act, 1925, s. 44.
By s. 198 of the (English) Law of Property Act, 1925, registration under the (English) Land Charges Act,1925, at the Land Registry or any local registry according to the statutory requirements constitutes notice of the instrument or matter registered, but this relates only to instruments and matters which must be registered. Purchasers of land are protected to some extent by s.43 of the (English) L.P. Act, 1925, but in Forsey v. Hollebone, (1927) 2 Ch 379, it was held that relief could not be given to the purchaser (who had become affected with notice of a town planning resolution registered in a local land charges registry without disclosure by the vendor), as the registered incumbrance (if it was an incumbrance) was not such as to enable the purchaser to rescind. See LAND CHARGES.
Further, whether or not an instrument or matter has been registered, the absence of the documents of title to the property by itself constitutes notice in all cases in which the same are material, and so does the occupation of land or an title or claim of an occupier, though the notice does not necessarily mean notice of an adverse claim.
To sum up, purchasers for value are affected by notice, actual or constructive; (English) Law of Property Act,1925, s. 205 (1) (vii.) of (1) mortgages effected before 1926 (ibid.), 1st Sched., Parts VII. and VIII. (for transfers and mortgages, effected after 1925, see infra); (2) trusts, settlements and equities of every kind created or arising before 1926, unless shielded by the 'curtain' [see (English) LAW OF PROPERTY ACT, 1925], or acquired after 1925, and if registrable, not registered; (3) restrictive covenants and equitable easements created before 1926; (4) estate contracts made before 1926, unless the benefit has been acquired after 1925 and not registered. On the other hand, purchasers for value will not be affected by notice of the following conveyances and transactions of which the legal title or effect has not been perfected by registration under the (English) Land Charges Act, 1925, before completion of the purchase:
(1) land charges in Class A of s 10 of that Act created after 1888 or acquired after 1888, and not registered within the first year aftr conveyance; (2) land charges in Class B of the same s.; (3) in Class C of s. 10, where the charge is created or transferred after 1925, including (i.) mortgages, not excepting first mortgages (not completed by possession of the title deeds) and required to be registered; (ii. and iii.) any equitable charge acquired after 1925 which is registrable under Class C (ii.) and (iii.) of s. 10, and under Class D, death duties on deaths after 1925, restrictive covenants made after 1925, and equitable easements arising after 1925. Further, purchasers for money or money's worth of a legal estate will not, but all other purchasers will, be affected (1) by notice of an unregistered estate contract within s. 10 (ibid.), including contracts to make settlement of land made or acquired after 1925. The (English) Land Charges Act, 1925, does not apply to registered land, with a few exceptions. See REGISTERED LAND AND LAND CHARGES, and ANNUITIES.
A purchaser for valuable consideration, without notice of a prior equitable right, who obtains the legal estate at the time of his purchase, is entitled to priority in equity, as well as at law, according to the maxim: 'Where conflicting equities are equal, the law shall prevail.' Nor will equity prevent a bona fide purchaser, without notice, from protecting himself against a person claiming under a prior equitable title, by getting in the outstanding legal estate, because, as the equities of both are equal, the purchaser should not be deprived of the advantage of his superior activity or diligence. And where he has merely the best right to call for the legal estate, he is entitled to the protection of equity, Bassett v. Nosworthy, Rep. Temp. Finch, 102 (1673); 2 W&TLC. The application of this doctrine has been profoundly modified by the Land Charges Act, 1925, the (English) Land Registration Act, 1925, the Law of Property Act, 1925, and by the fact that not only the first but all subsequent legal mortgages of a legal estate are now legal estates, and tacking or getting in the legal estate by a subsequent mortgagee and squeezing out an intervening mortgagee has been abolished by s. 94 of the (English) Law of Property Act, 1925, except in regard to further advances under the statutory conditions (see FURTHER ADVANCES; MORT-GAGES).
Notice of a memorandum relating to restrictive covenants or easements endorsed on one of the title deeds which are not handed to a purchaser under a title common to other parties will affect purchasers of other parts of the land under the same title (s. 200m ibid), but without prejudice to any obligation to register as land charges, restrictive covenants of freehold land, estate contracts and equitable easements, liberties or privileges created or registrable after 1925 [see s. 10 of the (English) Land Charges Act, 1925]. Notice of a previous assent or conveyance on the probate or grant of administration will constitute notice to subsequent purchasers under the same title (see Administration of Estates Act, 1925, s. 36). Further, by ss. 137 and 138 of the (English) Law of Property Act, trustees who have received notices of equitable interests are obliged to produce them to any person interested in the equitable interest, at the cost of the latter.
In regard to priority of charges, s. 97 of the (English) Law of Property Act,1925, provides that every mortgage affecting legal estate in land after 1925, whether legal or equitable (not being a mortgage protected by deposit of documents relating to the legal estate affected), is to rank according to its date of registration as a land charge. Mortgages and charges of registered land or of land within the limits of a local deed registry do not come within this rule, and see also DEARLE v. HALL; LAND CHARGES; REGISTRATION OF LAND; PRIORI-TIES; MORTGAGE. See also PUBLIC NOTICE.
Notice does not necessarily mean 'communication in writing'. When the Legislature used the word 'notice' it must be presumed to have borne in mind that it means not only a formal intimation but also an informal one. The service of a notice would include constructive or informal notice, Nilkanta Sidramappa Ningashetti v. Kashinath Somanna Ningashetti, AIR 1962 SC 666: (1962) 2 SCR 557. [Arbitration Act, 1940, s. 14(2)]
Notice the word 'notice' denotes merely an intimation to the party concerned of a particular fact. Notice may take several forms. It must, to be sufficient, be in writing and must intimate quite clearly that the award has been made and signed. A written notice clearly intimating the parties concerned that the award had been made and signed, certainly starts limitation, Parasramka Commercial Co. v. Union of India, (1969) 2 SCC 694 AIR 1970 SC 1654 (1656). [Arbitration Act (10 of 1940), s. 14(1)]
Notice the term 'notice' is originated from the Latin word 'notifia' which means 'a being known' or a knowing is wide enough in legal circle to include a plaint filed in a suit,' CST v. Subhash, AIR 2003 SC 1628 (1631): (2003) 3 SCC 454.
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