Charge on village income not enforceable against transferees without notice, even though the agreement created a valid charge.

An agreement requiring annual payment out of village income was held to create a charge on that income, but a charge does not amount to a transfer of an interest in property. Consistently with the principle reflected in Section 100 of the Transfer of Property Act, 1882, such a charge is not enforceable against transferees who purchased for valuable consideration without notice. Because the transferees had acquired the villages without notice, recovery from the village income could not be enforced against them, and the claim failed as against those transferees while remaining effective only against the original obligor.

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Issues: Whether the amount payable under the agreement created a charge on the income of the villages, and if so, whether that charge could be enforced against transferees who had purchased the villages for valuable consideration without notice.

Analysis: The agreement expressly provided for annual payment out of the income of the villages, which showed an intention to create a charge on the income. However, a charge does not amount to a transfer of an interest in the property. On the law as it then stood, and consistently with the principle embodied in Section 100 of the Transfer of Property Act, 1882, a charge created by agreement is not enforceable against a transferee for valuable consideration without notice. Since the transferees had purchased without notice, the plaintiff could not proceed against them for recovery out of the village income.

Conclusion: The charge existed, but it was not enforceable against the transferees without notice; the plaintiff's claim against them failed.

Final Conclusion: The decree in favour of the plaintiff was maintained only against the original obligor, and the appeal against the transferees was rejected.

Ratio Decidendi: A charge on property or its income, whether created by contract or otherwise, is not enforceable against a transferee for value without notice because a charge does not transfer an interest in the property.

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