The Doctrine of Priority, as defined under Section 48 of the Transfer of Property Act, generally dictates that when a property is transferred multiple times, the earlier transfer takes precedence over later ones. This means the first transferee's rights are generally protected unless specific exceptions apply. However, this principle isn't absolute and has several well-defined exceptions where a later transfer can supersede an earlier one.
Doctrine of Priority:
Core Principle:
The doctrine of priority is based on the principle of "first in time, first in right". It ensures that an interest or claim created earlier in time will generally have priority over interests created later.
Section 48 of the Transfer of Property Act:
This section of the Act codifies this principle, stating that a transferor cannot prejudice the rights of a prior transferee by subsequent dealings with the same property.
Purpose:
To protect the interests of the initial transferee and to maintain predictability and fairness in property transactions.
Exceptions to the Doctrine of Priority:
1. Postponement of Prior Mortgagee:
A prior mortgagee may lose their priority if they are found to have engaged in fraud, misrepresentation, or gross negligence when creating the mortgage.
2. Non-compliance with Legal Procedures:
If the first transfer was not executed according to the proper legal procedures (e.g., non-registration of an unregistered document), a later transferee who fulfills the necessary requirements may gain priority.
3. Fraud, Misrepresentation, or Gross Negligence by Prior Transferee:
If the first transferee obtained their interest through fraudulent means, misrepresentation, or gross negligence, a subsequent transferee may be able to claim priority, particularly if they were unaware of the prior fraud.
4. Doctrine of Notice:
If a subsequent transferee purchases the property in good faith, without notice of the prior transfer, and without any knowledge of any potential fraud or misrepresentation, they may be protected under the doctrine of notice.
5. Court Orders or Decrees:
If a court orders or decrees a subsequent transfer, it may take precedence over a prior transfer, especially in cases like partition suits or when a receiver is appointed to manage the property.
6. Estoppel:
The principle of estoppel can also alter the priority. For example, if a prior transferee's actions lead a subsequent transferee to believe they have a valid claim, the prior transferee may be estopped from asserting their priority.
7. Lien for Owelty Money:
In partition suits, a co-sharer's lien for owelty money (a payment to equalize shares) may take priority over earlier mortgagees.
8. Doctrine of Lis Pendens:
The doctrine of lis pendens can also affect priority. If a lawsuit (lis pendens) is pending regarding the property, any subsequent transfer during the pendency of the suit may be subject to the outcome of the litigation.

The Doctrine of Priority is a principle mainly used in property law and insolvency law, which states that when multiple rights or claims are created over the same subject matter, the earlier in time prevails over those that are later. This means that the person who first acquires a legally enforceable right (e.g., a mortgage or lien) has a prior claim over others in the event of enforcement, sale, or insolvency.

Legal Maxim: Qui prior est tempore, potior est jure
"He who is earlier in time is stronger in law."

Applications:
1. Mortgages and Charges: An earlier mortgage has priority over a subsequent one.
2. Insolvency: Secured creditors are paid in order of the priority of their charge.
3. Registration of Documents: Earlier registered documents generally have priority.

Exceptions to the Doctrine of Priority:
1. Fraud or Misrepresentation
– If the first claim was obtained by fraud, the court may deny its priority.

2. Bona Fide Purchaser for Value Without Notice
– A person who buys property in good faith, for consideration, and without notice of the prior claim may be protected.

3. Statutory Exceptions
– Certain laws give overriding priority (e.g., tax dues, employees' wages under labor laws, etc.).

4. Equitable Principles
– In equity, courts may adjust priorities to prevent unjust enrichment or hardship.

5. Unregistered Documents
– A registered later document may get priority over an unregistered earlier document, especially under the Transfer of Property Act, 1882.