RANGANATHA AYYANGAR Vs. RRAJAGOPALA AYYANGAR

JUDGEMENT

(1.) Defendant 2 is the appellant. Defendant 1 purchased the suit property from one Saranadha Ayyangar under Ex. A dated 5 October 1915 for a sum of Rs. 400. Towards payment of part of the consideration namely, Rs. 200, he executed a "debt-bond," Ex. B, dated 13 October 1915, in favour of the vendor. This bond was assigned by the vendor to the plaintiffs father by Ex. B-l dated 20 October 1915. The suit property is admittedly worth more than Rs. 100 and the assignment deed, Ex. B, has not been registered. The suit out of which this second appeal arises was instituted by the plaintiffs to recover by sale of the suit land and from defendant 1 personally, the sum of Rs. 351-12-3 due on the "debt-bond" executed by defendant 1 to Saranatha Ayyangar. The contesting defendant is defendant 2. He purchased the suit property from defendant 1 under Ex. 1 dated 3 November 1921. Reversing the decree of the District Munsif which dismissed the plaintiffs suit, the Subordinate Judge gave them a decree for the sum claimed together with interest against defendant 1 and also against the property.

(2.) It will be observed that under Section 55, Clause 4(b), T.P. Act, as part of the purchase-money due on the property remained unpaid by defendant 1, the vendor Saranadha Ayyangar had a charge on it in the hands of defendant 1 for the amount of this unpaid purchase-money. It is argued by the appellant that this "charge" called the unpaid vendor's statutory lien has been assigned under Ex. B-l and as the assignment deed has not been registered under Section 17, Clause 1 (b), Registration Act, the property being worth more than Rs. 100, the learned Subordinate Judge should have held that there has been no valid assignment of the "charge" and the plaintiffs suit should have been dismissed in so far as it asked for relief against the property. Section 17, Clause 1(b), Registration Act, makes compulsorily registrable: instruments (other than instruments of gift) which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent of the value of one hundred rupees and upwards, to or in immovable property.

(3.) And by Section 49 it is declared that no instrument required by Section 17 to be registered should be received in evidence in any civil proceeding in any Court unless it had been registered. On behalf of the respondent it is argued that Ex. B-1 is a mere assignment of the simple debt due under Ex. B, that the "vendor's lien" is not assigned thereunder and that it is a mere security which passes to the assignee under Section 8, T.P. Act, as a "legal incident of the transfer; and as such Ex. B-1 does not require registration. Section 8, T.P. Act, runs as follows: Unless a different intention is expressed or necessarily implied a transfer of property passes forthwith to the transferee all the interests which the transferor is then capable of passing in the property and in the legal incidents thereof. Such incidents include... where the property is a debt or other actionable claim, the securities therefor....