Judgement

Law. Rep. 68 Ind. App. 136 ( 1940- 1941)

P. T. Krishnaswami Ayyangar V. C hevula Kamalamma 39

Appeal (No. 28 of 1939) from a decree of the High Court (July 26, 1935) reversing a decree of the High Court on its original (side (September 6, 1932).

The following facts are taken from the judgment of the Judicial Committee.

Chevula Venkatasubbaya Chetti, now deceased [hereinafter referred to as "the testator”], was the owner of two houses in Madras, to be referred to as Nos. 60 and 68 respectively.

On June 2, 1919, the testator executed a promissory note for Rs. 12,000, bearing interest at nine per cent, per annum, in favour of one Rangayya Chetti, and deposited with him the title of deeds of No. 60 as security. At the same time the testator executed a document, headed "Collateral Security "Bond,” which recorded the fact of the deposit of the title deeds as collateral security in respect of the promissory note, and then proceeded as follows "I shall therefore pay you the "principal and interest accruing due on the said promissory "note, from this date, in full, and redeem the said title deeds. "To this effect is the collateral security bond executed by "me with consent." That