9911796707
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Issues:
1. Priority of hypothecations between the plaintiff and the fifth defendant. 2. Validity of transfer in favor of the plaintiff in respect of part of the debt due to Chellam Ayyar. Detailed Analysis: 1. The case involved a dispute over the priority of hypothecations between the plaintiff and the fifth defendant regarding subscriptions paid by Chellam Ayyar towards a chit fund. The plaintiff had a hypothecation bond executed by Chellam Ayyar, while the fifth defendant also had a bond executed by Chellam Ayyar and his brother. The trial court dismissed the suit, but the lower appellate court decreed in favor of the plaintiff. However, Butler, J. held that the plaintiff did not give notice of the transfer to defendants, therefore not entitled to priority. The court analyzed the Transfer of Property Act, stating that the plaintiff perfected his title upon execution of the instrument, and notice to debtors was not necessary to complete the title. The court found that under Indian law, priority should be determined based on the date the title vested in the transferee. Therefore, the plaintiff was held entitled to priority over the fifth defendant. 2. Another issue raised was the validity of the transfer in favor of the plaintiff, which covered only part of the debt due to Chellam Ayyar. The defendant argued that this partial transfer was invalid and did not fall under Section 130 of the Transfer of Property Act. However, this objection was not raised in the lower courts or before Butler, J., and the plaintiff was not given an opportunity to present evidence to counter this claim. As a result, the court did not allow this argument to be considered during the appeal. Ultimately, the court allowed the appeal, set aside Butler, J.'s judgment, and reinstated the lower appellate court's decision, ruling in favor of the plaintiff. The respondents were ordered to pay the costs of the appellant in this Court and in the second appeal.
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