Judgment

Koshy,J.

Appellant, a surety, claims the benefits of subrogation under section 92 of the Transfer of Properties Act, 1882 (in short 'the T.P.Act'). Apart from issues relating to subrogation by operation of law, effect of registration/non-registration of charges with the Registrar of Companies under section 125 and 135 of the Companies Act and rule 14 of the Companies Rules and application of the principles of estoppel and section 115 of the Evidence Act are the questions to be considered in this case.

2. Appellant was one of the directors of the company, M/s.Mittal Steel Re-rolling and Allied Industries Ltd. (hereinafter referred to as the 'company'). The above company, now in liquidation, applied for and availed of financial facilities from Canara Bank, Wadakkanchery to a limit of Rs.75 lakhs out of which an amount of Rs.22 lakhs and odd was outstanding as payable in June, 1981. The entire assets of the company including the land and machinery were mortgaged to the Canara Bank and directors of the company including the appellant had executed personal guarantee bonds and stood as sureties for the said loan. On account of the failure of the company to pay back the dues in prop