1938 (10) TMI 13

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....n was stated to be on the security of specified immovable property. The debentures were registered with the Registrar of Joint Stock Companies pursuant to Section 108 of the Indian Companies Act, but they were not registered under the Indian Registration Act. The company is now in liquidation, and the question is whether the holders of these debentures are entitled to rank as secured creditors. The question was considered by Gentle, J., on an application by the Official Liquidator, who is the first respondent in this appeal. The Official Liquidator contended that the debentures were invalid for two reasons. In the first place, he said that the wording of the debentures operated to create a mortgage and not merely a charge and therefore by r....

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.... registered instrument signed and attested as aforesaid, or (except in the case of a simple mortgage) by delivery of the property. 4. As a simple mortgage cannot be effected by delivery of the property it can only be effected by a registered instrument, and Section 4 of the Transfer of Property Act directs that Section 59 shall be read as supplemental to the Registration Act. The first clause of Section 100 as amended by Act XX of 1929 provides: Where immovable property of one person is by act of parties or operation of law made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property; and all the provisions hereinbefore contained which app....