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1922 Supreme(Lah) 132
Lahore High Court
Le Rossignol, J.
Arjan Singh - Appellant
Versus
Bakhtawar Singh - Respondent
Decided On : 26-10-1922
JUDGMENT
Le Rossignol, J. - This was a suit for possession by a mortgagee on four unregistered deeds of Rs. 99 each.
2. The defendant denied receipt of consideration and the Trial Court dismissed the suit.
3. The District Judge without deciding whether consideration passed, decreed for plaintiff on the ground that Allah Dilta v. Nazar Din [1916] 33 P.R. 1916 justified such course.
4. Allah Ditta v. Nazar Din [1916] 33 P.R. 1916 does not, in my opinion rule out a defence that the mortgage does not exist because the mortgagee had no part of the consideration or that there is no consideration for the mortgage. In such a case the Courts must decide whether there is a subsisting contract. As a mortgage is a mere security for a loan the mortgage fails if there is no loan.
5. In this case defendant's contention is that there is no loan, so there is no mortgage.
6. The transaction is of a very suspisious nature, plaintiff has not proved whence he obtained the money, nor is it satisfactory that registration was avoided by the execution of four deeds in liew of one. The oral evidence is quite unreliable.
7. I do not believe that consideration passed and accepting the appeal I dismiss the suit with costs throughout.
