Registration of debentures charging immovable property requires local registration under the Registration Act despite company registration.

A debenture that creates a floating charge over a company's entire undertaking and property, including immovable property, requires registration under the Registration Act, 1908 in addition to registration under the Companies Act, 1913. Company registration serves notice through the company register, but it does not identify the specific land charged or provide the local notice intended by the Registration Act for dealings with immovable property. An instrument operating to create or affect rights in immovable property therefore falls within section 17(1)(b) and must be locally registered as regards the charged land.

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Issues: Whether debentures charging the whole undertaking and property of a company, including immovable property, were required to be registered under the Registration Act, 1908 in addition to registration under the Companies Act, 1913.

Analysis: The debentures created a floating charge over the company's entire property and, on the terms of the instrument, could crystallise against immovable property on specified events. Registration under the Companies Act served a different purpose, namely notice to persons dealing with the company through the company register, but it did not identify the specific immovable property charged. The Registration Act was designed to give local notice in the district where the land was situate and to protect persons dealing with land by requiring registration of instruments creating or affecting rights in immovable property. A debenture that operated to create a charge over immovable property therefore fell within the scope of section 17(1)(b) of the Registration Act, 1908 and required local registration in addition to registration under the Companies Act, 1913.

Conclusion: Registration under the Companies Act alone was not sufficient; the debentures required registration under the Registration Act, 1908 as regards the immovable property charged, and the appeal succeeded.

Ratio Decidendi: An instrument creating a charge, whether floating or fixed, over immovable property must be registered under the Registration Act, 1908 even if it is also registered under the Companies Act, 1913, because company registration does not substitute for the local notice required for dealings with land.

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