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<h1>Privy Council upholds validity of unregistered agreement for monthly payment, denies transfer under trust deed</h1> The High Court of Madras initially deemed an unregistered agreement for monthly payment of &8377;500 void, but the Privy Council ruled it valid as a ... - Issues:1. Validity of the agreement for the payment of &8377; 500 a month.2. Transfer of rights under the trust deed and subsequent assignment.Analysis:Issue 1: Validity of the agreement for the payment of &8377; 500 a month:The case involved a dispute regarding the agreement for the payment of &8377; 500 a month, which was not registered. The Subordinate Judge initially ruled in favor of the plaintiffs, but the High Court of Madras reversed the decision, holding that the agreement was void as it was not in writing and registered. The Privy Council referred to relevant Indian legislation, including the Evidence Act, Registration Act, and Transfer of Property Act. They concluded that the agreement was a personal obligation collateral to the lease and not a charge on the property. Therefore, it was not required to be registered as part of the lease. The agreement was deemed valid and enforceable despite not being registered.Issue 2: Transfer of rights under the trust deed and subsequent assignment:The second issue revolved around whether the rights under the agreement for payment passed to the trustee under the trust deed executed by the Raja. The trust deed assigned various debts, arrears of rent, and other claims to the trustee. The Privy Council analyzed the language of the trust deed and concluded that the specific right to the monthly payment of &8377; 500 did not pass under the trust deed. The installment payments under the agreement accrued after the trust deed's execution, and the wording of the trust deed did not encompass such future obligations. Additionally, the suggestion that the agreement was included in the trust deed based on the reference to documents in the treasury was dismissed due to lack of evidence. Consequently, the Privy Council reversed the High Court's decision, upholding the Subordinate Judge's decree, and ruled that the respondents pay the costs of the appeal.In conclusion, the Privy Council's judgment clarified the validity of the agreement for the payment of &8377; 500 a month and the non-transferability of such rights under the trust deed, providing a comprehensive analysis of the legal issues involved in the case.
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