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Shekh Adam Hasanali Vs. Chandrashankar Pranshankar - Court Judgment

LegalCrystal Citation
SubjectTenancy
CourtMumbai
Decided On
Case Number Second Appeal No. 584 of 1910
Judge
Reported in(1912)14BOMLR506
AppellantShekh Adam Hasanali
RespondentChandrashankar Pranshankar
Excerpt:
composition deed-essential test-assent of the whole body of creditors-trust or conveyance for the benefit of creditors.;where the owner of certain property transfers it to the trustees for the purpose of enabling those trustees to pay oil his creditors, and there is nothing in the deed to show that the creditors have settled with the debtor to accept less than what may be due to them, the dead is not a composition deed.;the essential test of a composition deed is that there ought to be a compounding of debts due. - .....the debtor should pay less than he owed to them and that they agreed to accept that composition. the essential test of a composition deed is that there ought to be a compounding of debts due. of that there is no trace whatever so far as the language of this document is concerned. it might be regarded as a conveyance or as a trust deed, 1. e., a trust made by the debtor for the purpose of enabling the trustee to pay off his creditors. from either point of view it was compulsorily registrable, and hot having been registered, it could not be admitted in evidence.2. on these grounds the decree must be reversed and the suit dismissed with costs throughout upon the respondents.
Judgment:

Chandavarkar, J.

1. It is clear upon the terms of Ext. 67 that it cannot be regarded in law as a composition deed. All that appears from its recitals and terms is that the owner of the property transferred it to the trustees for the purpose of enabling those trustees to pay off his creditors. There is nothing whatever in the language of the deed to show that there was any composition, any settlement with the creditors that the debtor should pay less than he owed to them and that they agreed to accept that composition. The essential test of a composition deed is that there ought to be a compounding of debts due. Of that there is no trace whatever so far as the language of this document is concerned. It might be regarded as a conveyance or as a trust deed, 1. e., a trust made by the debtor for the purpose of enabling the trustee to pay off his creditors. From either point of view it was compulsorily registrable, and hot having been registered, it could not be admitted in evidence.

2. On these grounds the decree must be reversed and the suit dismissed with costs throughout upon the respondents.


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