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TMI Blog1942 (2) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... sited but that the amount should be split up into four sums of Rs, 500 each and one of Rs. 1,000 repayable on the 10th April, 25th April, 10th May, 25th May and 5th June 1939 respectively. Being in financial difficulties the bank was not able to repay any of these sums on the due date, but offered to indorse five promissory notes to the appellant as security for its indebtedness to him. The appellant agreed to this course and the terms of the arrangement were embodied in a document which was duly executed, but it was not registered with the Registrar of Joint Stock Companies. On the 2nd November 1939 this Court passed an order for the compulsory winding up of the bank. The promissory notes indorsed to the appellant were of the aggregate f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Judge held that there Was here a mortgage, not a pledge; and it was on this ground that he held the document to be void as against the Official Liquidator. For the appellant it is said that the transaction constituted a pledge and therefore registration of the document was not necessary. Other contentions have been advanced on behalf of the appellant, but as we consider that this argument is well founded it is not necessary to refer to them. In the agreement of the 29th June 1939 the bank is referred to as the borrower and the appellant as the lender. Paragraph 1 states that the borrower in order to secure the sum of Rs. 3,000 and the interest thereon as and by way of security shall transfer by endorsement to the lender the promissor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is necessary to secure the debt. Section 172 of the Indian Contract Act defines "pledge" in these words: "The bailment of goods as security for payment of a debt or performance of a promise is called 'pledge'. The bailor is in this case called the 'pawnor'. The bailee is called the 'pawnee'." Section 148 which defines "bailment" reads as follows: " A 'bailment' is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the 'bailor.' The person to whom they are delivered is called the ' bailee'." Promissory notes are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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