Sec. 66.

Constructive notice

It having been decided in equity that a mortgagee takes subject to any earlier claim of
which he has actual notice, another step was inevitable, otherwise he would take care not
to learn of outstanding equities. Equitable claims are therefore held to be good against a
mortgagee who would have known of them if he had acted as a prudent mortgagee acts,
that is, if he had made the usual search of title. The mortgagee is obliged not only to be
honest but also to be diligent (p). This is the equitable doctrine of constructive notice.
Actual notice does not, constructive notice does, involve the question as to the negligence
or diligence of the mortgagee
Constructive notice means that the circumstances surrounding the taking of
a mortgage are such as to induce the court to treat the mortgagee who in fact has no
actual notice of an earlier charge as if in fact he had actual notice. The circumstances
which will affect a mortgagee with constructive notice are (r)

Constructive notice is a legal fiction used in the law of both common law and civil
law systems to signify that a person or entity is legally presumed to have knowledge of
something, even if they have no actual knowledge of it
The law presumes that everyone has knowledge of a fact when the fact is a matter of
public record.

Doctrine of constructive notice

Every person dealing with the company was treated as having the knowledge of the
contents of the memorandum. (Public documents of the company).
It seeks to protect the company against the outsider.
Imputation of knowledge –whether the party concerned has actual knowledge or not.