Judgement

Appeal (No. 6 of 1944) from a judgment and decree of the Chief Court (March 17, 1942) which affirmed a judgment and decree of the Court of the Civil Judge at Lucknow (May 23, 1940).

The following facts are taken from the judgment of the Judicial Committee. On July 2, 1931, the appellant executed a simple mortgage deed for Rs. 1,50,000 in favour of the respondent bank. Some portion of that sum was paid off, but on August 25, 1934, the bank instituted a mortgage suit against the appellant in the Court of the Subordinate Judge of Lucknow to recover Rs.78,542-1-3 by sale of the mortgaged property. The bank also filed an application with the plaint praying for an attachment before judgment and the appointment of a receiver in respect of a portion of the hypothecated property, and on September 11, 1934, the Court of the Civil Judge passed an order granting that application and appointing a receiver.

On September 18, an agreement was entered into between the parties whereby the exploitation rights in four films were to be sold at Rs. 12,500 each and the amounts to be credited to the appellant in part payment of the mortgage debt. By cl. 3 of that agreement the respondent was to