Registered mortgage and company charge defeat subsequent purchasers, who acquire no title beyond the equity of redemption.

A duly registered mortgage and a registered company charge bind subsequent purchasers, because registration gives statutory notice and prevents a later transferee from acquiring title superior to the mortgagor's interest. On the facts, the applicants could not rely on lack of actual notice to defeat the plaintiff's prior security interest, and the transfer to them conveyed no more than the equity of redemption. The pendency of the suit did not dilute the plaintiff's registered rights, so the challenge to the receiver's possession and proposed sale could not prevail. The chamber summons was therefore not maintainable on merits.

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Issues: Whether the applicants, as subsequent purchasers, could displace the plaintiff's prior registered mortgage and company charge over the property, and whether the chamber summons deserved to be allowed.

Analysis: The mortgage created in favour of the plaintiff was validly registered, and its registration under the Companies Act also gave statutory notice of the charge to persons acquiring the property. Even if the applicants lacked actual notice, the combined effect of the registered mortgage and the registered charge meant that the transfer by the company and the downstream transfer to the applicants could convey no title beyond the equity of redemption. The applicants were not bona fide purchasers without notice, and the pendency of the suit did not invalidate the plaintiff's security interest. The applicants' challenge to the receiver's possession and the proposed sale therefore could not override the plaintiff's prior rights.

Conclusion: The chamber summons was not maintainable on merits and the applicants were held bound by the plaintiff's prior mortgage and charge; they acquired, at best, only the equity of redemption.

Ratio Decidendi: A duly registered mortgage and registered company charge bind subsequent purchasers, who are deemed to have notice and can acquire no interest superior to the mortgagor's equity of redemption.

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