Mortgage-Mortgage by deposit of title deeds-No document executed on the day of deposit ---can intention be inferred from a deed subsequently executed and registered---Transfer of Property Act (Act No. IV of 1882), s. 58(f). 

The plaintiff-appellant filed a suit to enforce a mortgage by deposit of title deeds. The case of the plaintiff was that on 10th May, 1947, the 1st defendant deposited with the plaintiff at Madras other title deeds and papers relating to his half share in items specified in Schedule 'B' attached to the plaint with intent to create a security over the same in respect of advances made by the plaintiff. Before the 10th May, 1947, the 1st defendant borrowed from the plaintiff from time to time Rs. 16,500/- on 7 promissory notes. The case of the plaintiff further was that the 1st defendant executed a memorandum of agreement, dated 5th July, 1947, in which the equitable mortgage thus created and the amount borrowed by him till then were acknowledged and he had undertaken to repay the said sum of Rs. 16,500/- with interest. This memorandum of agreement had been duly registered. This suit was for recovery of the principal amount of Rs. 16,500/- and interest thereof. The 1st defendant did not file any written statement denying the said allegations. The 3rd defendant (a subsequent mortgagee), the only contesting defendant, filed a written statement wherein he put the plaintiff to strict proof of the fact that the sums claimed in the plaint were due to him from the !st defendant and of the fact that the 1st defendant effected a mortgage in his favour by deposit of title deeds. The Trial Court held that the 1st defendant had no intention to create a mortgage by deposit of title deeds on May 10, 1947. On appeal the High Court also affirmed the finding of the trial Court The question for consideration was whether on 10th May, 1947, there was a loan and whether the 1st defendant delivered to the appellant the documents of title of B Schedule properties with the intent to create a security thereon.