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IN THE HIGH COURT OF MARAS
Wallace
M. Veeresalingam
Versus
P. Kondayya
Decided On : 4 February, 1924
Fraud - Mortgage - Validity of Registration
Fact of the Case:
The court considered whether a mortgage was void due to fraud in the registration process, where the mortgagor included property that did not belong to him for registration.
Finding of the Court:
The court found that the mortgage was not void on the ground of fraud as there was no collusion by the mortgagee to assist the fraud by the mortgagor in the registration process.
Issues: Validity of mortgage registration due to inclusion of property not belonging to the mortgagor.
Ratio Decidendi: The court relied on previous rulings to conclude that if there is no collusion by the mortgagee to assist the fraud by the mortgagor in the registration process, the registration is not invalid, at least with regard to the interests of the mortgagee.
Final Decision: The Second Appeal was dismissed, and the decree of the lower Appellate Court was upheld, with costs. Time for payment was extended.
Wallace, J.
1. The only point raised before me is whether the mortgage is void on the ground that its registration was effected by a fraud on the registering officer, inasmuch as the mortgagor intentionally included therein for purposes of registration property which did not belong to him. There is no allegation that the mortgagee was aware of the fraud and shared in it. In these circumstances I must accept the ruling of a Bench of this Court in Venkata Lakshmikantaraju Garu v. Pada Venkata Jaganadha Raju Garu A.I.R. 1924 Mad. 281 following Harendra Lal Roy Chowdhury v. Haridasi Bibi A.I.R. 1914 P.C. 67, Biswanath Prasad v. Chandra Narayan chowdhury A.I.R. 1921 P.C. 8 and Pahlad Lal v. Laraiti (1918) 41 All. 22, that where no collusion by the mortgagee to assist a fraud by the mortgagor in respect of the registration of the document has bean made out, the registration is not invalid, at least so far as the interests of the mortgagee are concerned. The decree of the lower Appellate Court is, therefore, right and this Second Appeal is dismissed with costs. Time for payment is extended up to 16th April, 1924.
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