Mitchell V. Fernando Et Al.,

1945 Present: Howard C.J. and Keuneman J.

MITCHELL, Appellant, and FERNANDO et al., Respondents.

344-D. C. Colombo, 731.

Mortgage-Shares in Company-Delivery of scrip-Delivery of possession-Cession of right-Sale in execution against mortgagor-Knowledge of mortgage-Title of Fiscal's transferee-Action on mortgage bond- Roman-Dutch law.

The first and second defendants mortgaged shares in a Company with the plaintiff by bond and deposited the share certificates with the plaintiff along with the bond. While the shares were under mortgage the third defendant purchased the shares in execution of a money decree against the first and second defendants and obtained Fiscal's conveyance. Thereafter the shares were registered in the Company's, register under the name of the third defendant.

Held (In an action on the bond by the plaintiff), that delivery of the share certificates was not sufficient evidence of the effective delivery of the shares mortgaged. The possession of the share certificates did not give to the plaintiff such control and direction of the shares-mortgaged as to be equivalent to possession in law of the shares mortgaged.

Click Here to Read the rest of this document