Law:

Section:

(a) Banking Companies (Recovery of Loans) Ordinance (XIX of 1979) S. 6-- Limitation Act (1X of 1908), Art. 132, Expln. (c) Registration Act (XVI of 1908), S.17 Suit for recovery of money based on Memorandums of Deposit of title deeds Limitation ¬Plaintiff Bank in support of its claim produced in evidence two Demand Promissory Notes dated 23 12 1982 and 9 8 1983, and Memorandums of Deposit of title deeds Special Judge found such memorandums to be compulsorily registrable under Registration Act, 1908 and dismissed the suit on the ground that the same had to be filed within 3 years from date of last acknowledgement of liability Validity Such memorandums merely recorded the earlier deposit of title deeds and did not in themselves create any mortgage, thus, were not compulsorily registrable -- Last acknowledgement had been made by defendants on 9 8 1983 Since mortgage had been duly created by defendant in favour of Bank by deposit of title deeds, period of limitation for filing of such suit was 12 years from 9 8 1983 and not 3 years Suit having been filed on 24 8 1993 was well within time High Court set aside the impugned /decree and decreed the suit of Bank with costs. (b) Transfer of Property Act (IV of 1882) -- S.58W Registration Act (XVI of 1908), S.17 Mortgage by deposit of title deeds Memorandums of Deposit of title deeds contained the fact that prior to execution of Demand Promissory Notes, title deeds mentioned in the Schedules of memorandums had been deposited with Bank with the intention of creating an equitable mortgage in favour of Bank over the properties comprised in the title deeds Contention of mortgagors was that mention of sum secured together with rate of interest in such memorandums would make them mortgage deeds requiring compulsory registration under Registration Act, 1908 Validity ¬Such memorandums showed that mortgage had been created prior to their execution through deposit of original title deeds ¬Memorandums merely recorded the earlier deposit of title deeds and did not in themselves create any mortgage in praesenti, thus, were not compulsorily registrable. United Bank of India Ltd. v. Azirannessa Bewa alias Azizannessa Bewa PLD 1965 SC…

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