MULRAJ KHATAU Vs. VISHVANATH PRABHURAM VAIDYA

JUDGEMENT

(1.) The question in this appeal is as to whether the appellant or the respondent is entitled to a sum of Rs. 29,426-14-0 now standing in Court to abide the result of the action. It represents the net proceeds of a policy of insurance on the life of Dwarkadas Dharamsey who died on 8th August 1909.

(2.) The appellant bases his claim on an assignment in writing under the hand of Dwarkadas Dharamsey, dated the 13th of August 1909. It is in form an absolute assignment, and was according to the evidence given under pressure from the appellant to whom Dwarkadas Dharamsey was then indebted in a much larger sum. The validity of the assignment is therefore established. It may well be that although absolute in form it was intended to be only by way of security so as to be subject to a right of redemption, but this does not affect the rights of the parties under the circumstances of the present case.

(3.) The respondent bases his claim upon a deposit of the policy with him by Dwarkadas Dharamsey undoubtedly with the intention of its acting as security for the repayment of a debt then owing by him to the respondent. This deposit was made in November 1904 and was unaccompanied by anything in writing. The particular debt owing at the time was subsequently paid off, but in and subsequently to April 1909 Dwarkadas Dharamsey again became indebted to the respondent, and it is claimed that the deposit was made on the terms that it should act as security not only for the then existing debt but for any indebtedness that might subsequently arise. Whether or not this contention of fact is established is not in their Lordships opinion material.