Judgement

Appeal from a judgment and decree of the High Court (November 28, 1917) reversing a decree of the temporary Subordinate Judge of Ramnad.

The suit was instituted by the respondents against the appellants to recover the sum of Rs. 23,576 under a written agreement dated March 14, 1907. The material terms of the agreement, and the circumstances in which it was entered into, appear from the judgment of their Lordships.

The Subordinate Judge held that the agreement was supported by consideration, but that it was inadmissible and invalid for want of registration. Upon appeal to the High Court the decree of the Subordinate Judge was set aside and the suit remanded for trial. The Chief Justice was of opinion that the agreement was only intended to operate upon sums realized as they were realized, and that it did

Law. Rep. 47 Ind. App. 188 ( 1919- 1920)

Vyravan C hetti V. Subramanian C hetti 54

not affect the rights of the parties against the mortgaged property. In his view therefore it did not require registration under s. 17 of the Indian Registration Act. Sadasiva Aiyer J. was of opinion that the agreement purported to extinguish the appellants priority of security over the immova