(1) A division bench of this court composed of Honble Bhat J and Honble Mukerjee) has referred this case to the full bench as in its opinion it raised important questions of law of far reaching importance.

(2) The fact material for the purpose of and leading to this reference are i -

On 28-12-1963 the Jammu and Kashmir Bank Ltd. the applicant herein, brought a suit, being suit No, 43 of 1963 against Lal Mahammed Bangroo, the respondent herein, on the original side of the court, for recovery of Rs 59, 166.14 by sale of an orchard measuring 76 Kanals and 9 Marias and house etc described in para No. 3 of the plaint which were mortgaged in favour of the former by the latter as also by sale of the movable properties hypothecated in favour of the former by the latter. In the petition of plaint, it was averred by the plaintiff that a sum of Rs. 60,000/- on each credit system was advanced to the defendant on the basis of a pronote executed on 17-9-1962 by the latter on behalf of himself and Aerosound, whose sole proprietor he was, that in order to secure the loan the defendant conveyed by way of simple mortgage on the same day, the aforesaid orchard measuring 76 Kanals an