Alfred Henry Lionel Leach, C.J.

1. By a resolution dated the 7th July, 1935, the Swarajya Printing and Publishing Company, Limited, Madras, a company incorporated under the Indian Companies Act, 1913, resolved to issue 1,000 debentures of Rs. 50 each and 922 of these debentures were issued. There was no debenture trust deed, but on each certificate the conditions of issue were printed and the loan was stated to be on the security of specified immovable property. The debentures were registered with the Registrar of Joint Stock Companies pursuant to Section 108 of the Indian Companies Act, but they were not registered under the Indian Registration Act. The company is now in liquidation, and the question is whether the holders of these debentures are entitled to rank as secured creditors. The question was considered by Gentle, J., on an application by the Official Liquidator, who is the first respondent in this appeal. The Official Liquidator contended that the debentures were invalid for two reasons. In the first place, he said that the wording of the debentures operated to create a mortgage and not merely a charge and therefore by reason of Section 59 of the Transfer of Prope