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1885 Supreme(All) 62

ALLAHABAD HIGH COURT
TYRRELL, W. COMER PETHERAM, JJ.
The Himalaya Bank Limited - Appellant
Versus
The Simla Bank Limited & Anr. - Respondent
Decided On : 16-11-1885

JUDGMENT

W. Comer Petheram, C.J. - I am of opinion that this appeal must be allowed, and that judgment must be given in favour of the plaintiff. The real question in the case is, whether the title of the Himalaya Bank or that of the Simla Bank should prevail with respect to the mortgages executed by the defendant, Mrs. E. McMullen. The facts of the case are, that on the 30th June 1881, the defendant, Mrs. McMullen, mortgaged a house in Saharanpur to the Simla Bank, to secure a sum of money. The mortgage deed was never registered, and the amount due upon it was never paid off. On the 17th July 1883, the same mortgagor executed a mortgage-deed in respect of the same house in Saharanpur in favour of the Himalaya Bank, to secure a sum of money, and this deed was duly registered on the 10th August 1883. There is no finding on the subject, but it must be assumed for the purposes of this case that the Himalaya Bank had no knowledge of the mortgage-deed of the 30th June 1881, which at the time of their own deed, was not registered.

2. The first question is, what was the condition of the titles to the property in suit at the time of the registration of the second mortgage-deed? The titles herein questions are titles created by two mortgage-deeds. The matter is governed by Section 50 of the Registration Act, which is in the following terms: "Every document of the kinds mentioned in Clauses (a),(b),(c), and (d) of Section 17, and Clauses (a) and (b) of Section 18"--which includes the mortgage-deeds before us--"shall, if duly registered, take effect, as against the property comprised therein, against every unregistered document relating to the same properly." It is only necessary to read the section to see what was the condition of the titles possessed by the two Banks at the time when the second mortgage-deed was registered. The registered deed of the Himalaya Bank was, by Section 50, given priority over the unregistered deed of the Simla Bank; so that at that time the Himalaya Bank, by virtue of their registered deed and the terms of the statute, was in the position of a first mortgagee, and the Simla Bank was in the position of a second mortgagee. The only interest, therefore, which Mrs. McMullen or the Simla Bank had in the property was what would remain after the debt of the Himalaya Bank had been satisfied. That was the condition of the titles in August 1883. Upon this state of things, the Simla Bank took proceedings against Mrs. McMullen--to which the Himalaya Bank was not made party--to realise their security, and obtained a decree. Now, at the time when that decree was passed, the interest which Mrs. McMullen had was subject to the Himalaya Bank's mortgage. So that the Himalaya Bank held a first charge on the property, and the Simla Bank held a decree for money against Mrs. McMullen, and against any interest which remained in her after the first charge had been paid off. That was the effect of the decree. Then the present suit was brought by the Himalaya Bank, and the question raised by it is, whether the plaintiffs are entitled to have the property sold to satisfy their mortgage, or whether their mortgage is subject to the decree held by the Simla Bank.

3. I am of opinion that the decree of the Simla Bank only affected what was left of the property after satisfaction of the mortgage of the Himalaya Bank, and that the Himalaya Bank is therefore entitled to have the property sold.

4. The authorities on the subject appear to be somewhat at variance with each other. The difficulty arises from the words in Section 50 of the Registration Act immediately following those I have already quoted,--"not being a decree or order, whether such unregistered document be of the same nature as the registered document or not." This, in my opinion, means that if a decree has been obtained to bring property to sale under a hypothecation bond, or under a money bond, and under that decree the property has been attached, that decree cannot be ousted by a su

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