Judgment

GAJENDRAGADKAR, C.J.I.:

These two appeals arise from two suits Nos. 5 of 1947 and 32 of 1951; and the main point which they raise for our decision is whether the two documents executed by the appellants and two of the respondents are unenforceable as being opposed to public policy under S. 23 of the Indian Contract Act (hereinafter called the Act ). The trial Court has answered this question in the affirmative, while the High Court of Kerala has taken a contrary view.

2. Poulo Varghese and Poulo Thommi who are the sons of Ouseph Poulo were carrying on trade in hill produce at Alwaye and in the course of their business, they had borrowed from the branch of the Catholic Union Bank Ltd., at Alwaye large amounts. In that connection, they had pledged goods with the Bank as security for the loan and the same had been deposited in a godown, the key of which remained with the Bank. It appears that on the 10th February, 1947, the Officers of the Head Office of the Bank inspected the godown and it was discovered that there was considerable shortage of the goods pledged. Thereupon, the Secretary of the Bank lodged a complaint with the Police that Ouseph Paulo and his two sons who had de