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Issues: Whether a valid mortgage by deposit of title-deeds was created when the title-deeds were sent by post pursuant to the creditor's request, and whether such posting amounted to a deposit in Bombay within the meaning of Section 58(f) of the Transfer of Property Act.
Analysis: The statutory requirement is that the debtor must deliver the title-deeds to the creditor or his agent in one of the specified towns with the intention of creating security. Punctuation cannot control the plain meaning of the provision. On the correspondence, the creditor expressly requested that the deeds be sent by post, and the first deed was in fact so sent. In these circumstances, the post office was treated as the creditor's authorised agent for receipt of the documents, so the transaction was complete when the deeds were posted under the agreed mode of transmission. However, the deeds were not deposited in Bombay within the meaning of the section, because the delivery occurred by post from outside the town rather than by deposit in the town itself.
Conclusion: No valid equitable mortgage by deposit of title-deeds was created.
Final Conclusion: The suit failed because the correspondence and mode of transmission did not satisfy the statutory requirements for a mortgage by deposit of title-deeds.
Ratio Decidendi: Where the creditor authorises delivery of title-deeds by post, posting may complete the transaction as between the parties, but it does not satisfy a statutory requirement that the deposit be made in the specified town for a mortgage by deposit of title-deeds.
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