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Issues:
Interpretation of lease terms creating a charge on property, enforceability of charge against transferees, applicability of Section 8 of the Transfer of Property Act to involuntary transfers, notice of charge to auction purchasers, distinction between set-off and plea of payment. Analysis: 1. The case involved a lease executed by two proprietors in favor of a lessee, including a provision for the lessee to deduct a specific amount annually from the rent towards a debt owed by one of the lessors. The lessee eventually transferred the interest in the leased property to the plaintiffs, who claimed the full rent for a particular year. The dispute arose regarding the enforceability of the deduction clause against the transferees. 2. The lower court decreed the plaintiffs' claim, ruling that the deduction clause was a personal covenant and not a charge on the property. However, the appellate court held that the transferees were bound by the lease terms, including the deduction clause. The central issue was whether a charge had been created on the property by the lease agreement, which depended on the construction of the lease and its impact on successors-in-interest. 3. The judgment emphasized that a charge does not require the transfer of interest in the property but designates a specific fund to satisfy a claim, akin to a mortgage. Citing legal precedents, it established that a charge can be created without technical terms if the intention to allocate a fund for a specific debt is clear. The court also addressed the applicability of Section 8 of the Transfer of Property Act to involuntary transfers and the notice of charge to auction purchasers. 4. The court rejected arguments that the charge could not be enforced against the transferees due to lack of notice or the application of a plea of set-off. It clarified that the defendant's contention regarding payment under the lease did not constitute a set-off and upheld the lower court's decision. The judgment concluded by dismissing the appeal and awarding costs to the plaintiffs. 5. Overall, the judgment established the enforceability of the deduction clause as a charge on the property, binding on the transferees, and clarified legal principles regarding charges, transfers of property, notice requirements, and distinctions between different types of pleas in the context of property disputes.
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