Section 81 of the Transfer of Property Act, deals with the doctrine of Marshalling of securities.

According to Sec. 81 of the Transfer of Property Act:

If the owner of two or more properties –
i) mortgages them to one person,
ii)and then mortgages one or more of the properties to another person,
in such a case, the subsequent mortgage is entitled to have prior mortgage-debt satisfied out of
property or properties which are not mortgaged to him. This will not affect the right of the prior
mortgagee who has acquired an interest in any of the properties for consideration. (in the
absence of a contract to the contrary).
For eg: Mr ‘A’ mortgages two of his properties namely; ‘1st’ and ‘2nd’ to Mr ‘B’. Thereafter,
Mr.’A’ mortgages property ‘2nd’ to Mr ‘C’. If the Mr ‘B’ mortgagee prefers to proceed against
‘2nd’ property, then subsequent mortgagee Mr ‘C’ may compel Mr ‘B’ to first proceed against
‘1st’ property to realize his dues. But later, if Mr ‘B’ is unable to realize his dues from ‘1st’
property, then he may proceed towards recovery of dues from ‘2nd’ property.