LAKSHMANASWAMY CHETTY, THE OFFICIAL ASSIGNEE Vs. VKNATESA CHETTY

JUDGEMENT

(1.) This is an application by the Official Assignee to expunge the proof of respondent V.K. Natesa Chetty to declare that he, the respondent, has no mortgage or charge over the estate of the insolvent and that the alleged mortgage in favour of the said Natesa Chetty is fraudulent and void as against him, to direct the respondent to pay him Rs. 14,500 and Rs. 2,870 or such other sum as may be found due by Natesa Chetty on the taking of the accounts, for costs and other reliefs.

(2.) The facts of the case are shortly these:

(3.) A vesting order was made on the 1 of October, 1920. On the 22nd of November, 1919 the insolvent executed a promissory note for Rs. 5,000 in favour of the respondent and on the 8 of September, 1920, another promissory note for Rs. 2,500 and deposited certain deeds as security, these being deeds of mortgage executed by third persons. The Official Assignee in the usual course wrote for particulars of the claim when a claim was made to him and the claim was notified on the 22nd of October, 1920. A proposal was made by the respondent to the Official Assignee to realise the securities and pay the respondent what was due to him and the Official Assignee consented to that course. Decrees were obtained upon these securities by the Official Assignee and it was agreed between the Official Assignee and the respondent that these decrees should be assigned over to the respondent for the debt due to him and a sale- deed was executed on the 16 of December, 1923.