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Issues: Whether the appellant could retain the original title deeds of the corporate debtor's property on the basis of a registered agreement for sale and an unregistered memorandum of deposit of title deeds, and claim the status of a secured creditor.
Analysis: The registered agreement for sale did not by itself confer title, and no sale deed had been executed. The alleged memorandum of deposit of title deeds, which sought to create an equitable mortgage, was unregistered and therefore could not create a legally enforceable charge. In the absence of registration under Section 77 of the Companies Act, 2013, the claimed charge could not bind the liquidator. The relevant documents also failed the mandatory registration requirement under Section 17 of the Registration Act, 1908, and could not be relied upon to sustain a right over the property. No valid financial claim was shown in the corporate debtor's records, and the appellant had not pursued specific performance.
Conclusion: The appellant had no enforceable right to retain the title deeds and could not be treated as a secured creditor on the basis claimed.
Final Conclusion: The challenge to the direction to hand over the title deeds failed, and the order under appeal was upheld in substance.
Ratio Decidendi: A registered agreement for sale does not convey title, and an unregistered instrument intended to create an equitable mortgage or charge cannot defeat the liquidator's right unless the charge is duly registered as required by law.
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