The judgment established the principle that the legal title to properties must be determined based on the applicable legal provisions and recent judicial interpretations, and that pending suits are not subject to the retrospective operation of new legislation.

Varadachariar, J.

1. This is an appeal by defendants 1 and 2 against a decree in ejectment passed against them, in respect of the properties specified in Schedule A to the plaint and directing payment of a small sum of money representing the price of easuarina trees admittedly cut by them. Defendant 1 having died pending the appeal his son defendant 2 is continuing the appeal so far as the. legal title to the A schedule properties is concerned; the appellants claim title to it under Ex. 23 executed by the Official Assignee of Madras, on 27th March 1925, representing the estate of one Sadagopa Chetti.

2. The properties admittedly belonged, originally to one Shanmuga Mudali, father of defendants 4 and 5. This Shanmuga had entered into an agreement with Sadagopa, in January 1921, to sell these properties and also certain movables, for a total consideration of Rs. 15,000. Shanmuga had already borrowed Rs. 4,000 from Sadagopa on 14th January 1921 and given a promissory note therefor, Ex. 10-B. The evidence in the. case shows that Sadagopa had received a sum of Rs. 10,000 in December 1920 from plaintiff 1, Balakrishna; and having regard to the evidence as to the absence of other resources of Sadagopa, it is not unlikely that the sum of Rs. 4,000 lent to Shanmuga on 14th January 1921 came out of the Rs. 10,000 which Sadagopa had borrowed from Balakrishna. It is Balakrishnas ease that when this Rs. 10,000 was borrowed from him by Sadagopa, the latter had agreed to give by way of security certain lands which he was negotiating to purchase. It would however appear that at the date of the alleged loan he was thinking not of the plaint lands but of some lands in a place called Aruvam-bakkam. When however the Rs. 10,000 was not repaid and no security executed, Balakrishna filed a suit in April 1921 against Sadagopa (O.S. No. 417 of 1921, on the file of this Court), claiming that Sadagopa might be directed to perform his agreement in favour of the plaintiff by executing a mortgage deed for Rupees 10,000 over "some suitable property belonging to him if he is possessed of any such property."

3. When Sadagopa agreed to purchase the A schedule properties and other movables from Shanmuga for a sum of Rs. 15,000 he had to find the means to make up the purchase money; and he seems to have borrowed moneys from defendant 1 (who was a pleader at Poonamalee). The evidence shows that on 27th January 1921, defendant 1 advanced to Sadagopa about Rs. 5,000 (or Rs. 5,250) and it is not unlikely, as defendant 1 deposes, that the payment of Rs. 5,000 made to Shanmuga on 27th January 1921 in connexion with this arrangement of purchase was made out of the moneys received from defendant 1. The receipt Ex. 10-A dated 27th January 1921 purports to be a consolidated receipt for Rs. 9,000 in respect of that sale transaction, the Rs. 9,000 having been made up of Rs. 4,000 due under the promissory note dated 14 the January 1921 and the Rs. 5,000 received on 27th January 1921.

4. A sale deed drawn up on 31st January 1921 (Ex. 10 in the case), purported to split up the agreement so far as it related to the land from the rest of it relating to the movables, and it was made out for a sum of Rs. 5,000 only as representing the price of the lands. For some reason, or other, Ex 10 was not completed by registration and the matter was allowed to drop there Sadagopa seems to have had some business transactions with defendant 1 in the course of which he received further advances from him; and it is said that by June 1921, a sum of about Rs. 11,000 was due from Sadagopa to defendant 1. It is defendant ls case that on the June 1921 a statement of account showing these balances was drawn up and this has been filed as Ex. 12 in the case. This account-statement wound up with the following words:

We shall get the sale deeds of 14 acres odd in Nekkondrum (the plaint A schedule lands) from Mr. V.V. Shanmuga Mudaliar in your name and deliver it to you We have already given you the tit