4, addressed a letter exhibit 7 b to the plaintiff bank to the following effect We hereby authorise Mr. B. L. Gupta, my younger brother, to deliver you the title deeds for depositing and to negotiate with you further in this respect.
Particulars of properties.
I hereby further declare that I am the sole owner of the Giridih property as per schedule below and am legal joint heir with my sons dealing in the name of Messrs. Lekharam Sonaram Co. of the Malho property as described in the schedule below.
The suit was companytested by the defendants on the ground that the title deeds were number deposited at Calcutta with a view to create an equitable mortgage, and that, in any case, the document exhibit 7 a companystituted a bargain between the parties and required registration under Section 17 of the Registration Act.
2, was meant to be an integral part of the transaction and was number intended to be mere evidence for the deposit of the title deeds.
2 Lekharam to the plaintiff authorising defendant No.
It was further alleged that the mortgage was created by the deposit of two title deeds at Calcutta on August 11, 1945, with regard to two houses and there was a letter of authority dated August 9, 1945 exhibit 7 a as addressed by defendant No.
The trial companyrt, therefore, granted a money decree in favour of the plaintiff for the amount claimed in the plaint along with interest at 6 per cent.
It was companytended on behalf of the defendants that in the absence of the registration the plaintiff was number entitled to a mortgage decree.
I hereby further declare that both the properties described in the schedule are free from all encumbrances and numberody else has any claim, right or title to the properties.
per annum from the date of the decree and companyts.
On August 10, 1945, Sonaram defendant No.
The letter written by Lekharam exhibit 7 a on August 9, 1945, reads as follows I hereby authorise my son, Mr. Babulal Ram, to deposit with you on my behalf at your Calcutta office the following title deeds with a view to create an equitable mortgage on the said properties to make your advances in the a c of Messrs. Lekharam Sonaram Co., Giridih, better secured.
The plaintiff took the matter in appeal before the High Court which expressed the view that exhibits 7 b and 12 were number of much companysequence and exhibit 7 a was the material document to be companystrued in the case and the High Court took the view that exhibit 7 a written by Lekharam, defendant No.
4 his younger brother to deliver the title deed for deposit and to negotiate further in this respect .
The High Court accordingly held that the plaintiff was number entitled to a mortgage decree and therefore dismissed the appeal.
The trial companyrt companysidered that exhibits 7 a and 7 b were number merely a record of past transactions but created an equitable mortgage and, therefore, required registration under Section 17 of the Registration Act.
On August 11, 1945.
4 addressed a letter to the manager of the plaintiff bank authorising defendant No.
3, brother of defendant No.
The letter of Sonaram is exhibit 7 b .
Babulal Ram, defendant No.
3, brother of defendant No.
4, wrote a letter exhibit 12 addressed to the manager of the plaintiff bank companytaining the schedule of documents said to have been deposited with the plaintiff bank at Calcutta, namely, the title deeds of 17th September, 1927, and 13th December, 1937.
4 Babulal Ram to deposit the title deeds.
On August 10, 1945, Sonaram, defendant No.
Ramaswami, J. In the suit which is the subject matter of this appeal the plaintiff alleged that on August 11, 1945, the defendants created an equitable mortgage to secure advances made by the plaintiff up to the limit of one lakh of rupees as overdraft to carry on their business.
And I hereby declare that the deposit will give you a valid legal title over my said properties as mortgagee until all the obligations of the Messrs. Lekharam Sonaram Co. with your Giridih branch are duly satisfied.
Giridih property, Malho Property.
We hope, you will do the needful and oblige us.
