{"id":141414,"date":"1952-11-13T00:00:00","date_gmt":"1952-11-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/m-narayanaswami-kone-vs-arigonda-narayanaswami-mudaliar-on-13-november-1952"},"modified":"2017-03-27T22:02:33","modified_gmt":"2017-03-27T16:32:33","slug":"m-narayanaswami-kone-vs-arigonda-narayanaswami-mudaliar-on-13-november-1952","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/m-narayanaswami-kone-vs-arigonda-narayanaswami-mudaliar-on-13-november-1952","title":{"rendered":"M. Narayanaswami Kone vs Arigonda Narayanaswami Mudaliar &#8230; on 13 November, 1952"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">M. Narayanaswami Kone vs Arigonda Narayanaswami Mudaliar &#8230; on 13 November, 1952<\/div>\n<div class=\"doc_author\">Author: B Aiyar<\/div>\n<div class=\"doc_bench\">Bench: B Aiyar<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>  Balakrishna Aiyar, J.   <\/p>\n<p> 1. On   5-8-1947,   one   Narayanaswami Mudaliar and his younger brother Ramakrishna Mudaliar executed two mortgage deeds one for Rs. 10,000 and the other for Rs. 27,500 in favour of one  Sundararaja  Iyengar.    Both these documents were presented for registration on  19-11-1947.   They were registered so far as one of the mortgagors,   Ramakrishna   is   concerned,  on  8-12-1947   and  it  was  compulsorily registered    as    regards    the    other    mortgagor Narayanaswami on 17-2-1948.  On 14-4-1948, that is  to   say  more  than   three  months  after  the date on which the documents were presented for registration, but  less  than three months  from the date  on  which  the documents were registered as regards Narayanaswami, two creditors filed a petition under Section 9, Provincial Insolvency Act, to adjudicate Narayanaswami, Ramakrishna and   three other  members   of  their  family  as insolvents.   This petition was dismissed by the learned Subordinate Judge on the ground that so far as Ramakrishna was concerned the petition had been presented more than three months after the date of the registration of the document.   He   dismissed   the   petition   so   far   as Narayanaswami  is   concerned   on   the   ground that he had already been adjudicated insolvent in the Sub  Court of Guntur.    On appeal, the learned District Judge agreed with the conclusion of the learned Subordinate Judge that the documents  must be deemed  to  have  been  registered  on    19-11-1947   and   since,   computing from that date, the petition had been presented more  than  three  months  later, it was out  of time.\n<\/p>\n<p> 2.  Mr. Umamaheswaram, the learned advocate for the petitioning creditors contended that this view of the court below is wrong. According to him the date from which time must be computed  is   17-2-1948  the date  on  which  the document  was  registered  so  far as Narayanaswami the first respondent, is concerned. I shall examine how far this contention is sound. Section 54, Provincial Insolvency Act, provides:\n<\/p>\n<p>   &#8220;Every  transfer  of  property&#8230;&#8230;&#8230;&#8230;made&#8230;&#8230; by  any  person  unable  to  pay  his debts  as they become   due from   his   own   money   in favour of any  creditor&#8230;&#8230;&#8230;shall if  such  a<br \/>\nperson is adjudged  insolvent   on   a   petition presented within three months after the date<\/p>\n<p>thereof,  be  deemed  fraudulent  and  void  as against&#8230;&#8230;&#8230;&#8221;\n<\/p>\n<p> Now it is obvious that before this section can be availed of, there must be a transfer which is legally complete and which the law will recognise and take notice of. It follows, therefore, that where the law enjoins that before a transfer can be effective, the document in question must be registered, the transfer would become complete in the eye of the law only on the date the document is registered. It will be noticed that in the expression &#8220;the date thereof&#8221; the word &#8220;thereof&#8221; relates to &#8220;transfer&#8221; so that time must be computed not from the date which the instrument bears, but from the date when the instrument becomes effective as a transfer. If authority were required for this position it may be found in &#8212; &#8216;Iswarayya v. Subbanna&#8217;, AIR 1934 Mad 637 (2) (A) and &#8212; &#8216;Venkatadri Somappa v. Official Receiver, Bellary&#8217;, A. I. R. 1938 Mad 801 (B). These decisions lay down that if the date of the execution of the document is different from the date on which it is registered, then the date on which it is registered shall constitute the starting point for the computation of time.\n<\/p>\n<p> 3. The difficulty in this case arises out of the fact that the date of registration is different not merely from the date of the execution of the document but also from the date on which the document was presented for registration. In such a case from what point should time be computed? Section 75(3), Registration Act, provides, it seems to me, clear guidance in this matter. Dealing with cases where compulsory registration is ordered by the District Registrar, this sub-section provides that such registration shall take effect as if the document had been registered when it was first duly presented for registration. The effect of this provision is that the statute fixes the date of presentation as the date of valid registration. On that date, the transfer would become complete. For purposes of Section 54, Provincial Insolvency Act, the date of the transfer referred to in it, would therefore, be the date on which the document is presented for registration, which date by force of the statute is deemed to be the date of the registration. Authority for this position is to be found in &#8212; &#8216;AIR 1938 Mad 801&#8217; (B). In that case a mortgage was executed on 5-3-1933. The document was presented for registration on 27th of June. The mortgagor denied registration and the Sub-Registrar refused to register the document. The District Registrar directed the document to be registered and this was finally done on 11-12-1933. After referring to the provisions of Section 75(3), Registration Act, the Court held that the mortgage deed must be deemed to have been registered on 27th June.\n<\/p>\n<p> 4. Mr. Umamaheswaram argued that Section 47, Registration Act, provides that a registered document shall operate from the time from which it would have commenced to operate if no registration thereof had been required and not from the time of its registration. The decisions of this Court, said Mr. Umamaheswaram, have refused to apply the principle of Section 47, Registration Act, when computing the three months time referred to in Section 54, Provincial Insolvency Act. Consistently with that, he argued, this court must refuse to compute time retrospectively for the purpose of Section 75 also. I am unable to see any logical connection between these two provisions. Considerations which would be relevant under Section 47, Registration Act, have no application to Section 75(3) of the<br \/>\nsame Act.\n<\/p>\n<p> 5. The question, for decision here is this: Was the transfer complained of made within the three months preceding the date on which the insolvency petition was filed. In order to find out when the transfer was made, we have to ascertain when the transfer became complete. That date must be the date on which the document was actually registered or deemed by the law to have been registered. Section 75, Registration Act provides that registration shall take effect from the time when the document was first duly presented for registration. It follows that the time must be computed from the date of the presentation of the document for registration which in this case was 19-11-47. As the petition was filed only on 14-4-1948 it is clearly out of time. The decision of the court below is correct and this civil revision petition is dismissed with costs. Advocate&#8217;s fee two sets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court M. Narayanaswami Kone vs Arigonda Narayanaswami Mudaliar &#8230; on 13 November, 1952 Author: B Aiyar Bench: B Aiyar JUDGMENT Balakrishna Aiyar, J. 1. On 5-8-1947, one Narayanaswami Mudaliar and his younger brother Ramakrishna Mudaliar executed two mortgage deeds one for Rs. 10,000 and the other for Rs. 27,500 in favour of one [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-141414","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M. 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