Parties creating security by deposit of title deed sintend to reduce their bargain regarding that deposit to the form of document, such document must be registered.

Citation

AIR 1971 SUPREME COURT 1613

SUPREME COURT

(From: Andhra Pradesh)*

K. S. HEGDE , J. and A. N. GROVER , J.

Civil Appeal No. 786 of 1966, D/- 25 - 3 - 1971

Veeramachineni Gangadhara Rao Appellant v. The Andhra Bank Ltd. and others Respondents.

Registration Act (16 of 1908), S.17 - When parties creating security by deposit of title deeds

intend to reduce their bargain regarding that deposit to the form of document, such document

must be registered. X-Ref:Evidence Act (1 of 1872), S.91, S.92 -

AIR 1950 SC 272 and AIR 1916 PC 115, Followed.

(Para 17)

But if on its proper construction and from surrounding circumstances it is found that parties did not

intend to do so, then their being no express bargain the contract to create mortgage by deposit of title

deeds arises by implication of law from deposit itself and document being merely evidential does

not require registration. Bar of Ss. 91 and 92 of Evidence Act does not apply to such document and

correctness of recitals therein can be looked into.

(Paras 17 , 19)

Cases Referred Chronological Paras

(1950) AIR 1950 SC 272 (V 37) : 1950 SCR 548, Rachpal

Maharai v. Bhagwandas

17, 18

(1923) AIR 1923 PC 50 (V 10) : 50 Ind App 77, Subramanian

v. Lutchman

(1916) AIR 1916 PC 115 (V 3) : 43 Ind App 122,

Pranjivandas Mehta v. Chan Ma Phee

(1873) 11 Beng LR (OCJ) 405 : 20 Suth WR 150, Kedarnath

Dutt v. Sham Lall Khettry

(1872) 5 HL 321 : 42 LJ Ch 49, Shaw v. Foster 18

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