P T KRISHNASWAMI AYYANGAR Vs. CHEVULU KAMALAMMA

JUDGEMENT

(1.) CHEVULA Venkatasubbaya Chetti now deceased was the owner of two houses in Madras. For the sake of brevity they may be referred to as Nos. 60 and 68 respectively, and their owner as the testator.

(2.) ON June 2, 1919, the testator executed a promissory note for Rs. 12,000 bearing interest at nine per cent, per annum in favour of one Rangayya Chetti and deposited with him the title deeds of No.60 as security. At the same time the testator executed a document headed " Collateral Security Bond " which recorded the fact of the deposit of the title deeds as collateral security in respect of the promissory note and then proceeded as follows : I shall therefore pay you the principal and interest accruing due on the said promissory note from this date in full, and redeem the said title deeds. To this effect is the collateral security bond executed by me with consent.

(3.) RANGAYYA Chetti died in the year 1921, and on October 13, 1930, his junior widow Gouriamma who was his sole legal personal representative instituted the present proceedings for the purpose of enforcing the equitable mortgage purporting to have been created in favour of RANGAYYA by the deposit of the title-deeds of No.60.