qui prior est tempore potior est jure
The maxim gives priority to the earlier of two competing rights over the same property. Section 48 of the Transfer of Property Act, 1882 applies it: where a person creates rights in the same immovable property by successive transfers, each later right is subject to the earlier one. So a first mortgagee ranks ahead of a second mortgagee.
The rule applies where the equities are equal. It yields to statutory exceptions, such as registration and notice rules, and to the postponement of a prior mortgagee through his own fraud, misrepresentation or gross neglect (section 78). In equity it is expressed as “where the equities are equal, the first in time prevails”.
Example
Under the rule qui prior est tempore potior est jure, the bank holding the earlier mortgage was paid first from the sale proceeds.
In Indian law
- s.48, Transfer of Property Act, 1882 (priority of rights created by transfer)
- s.78, Transfer of Property Act, 1882 (postponement of prior mortgagee)