Hanwanta vs Darshan Singh and Others

Assuming that the instrument creates a charge on Immovable property, which may be doubted (see next case) it purports to create an interest over Rs. 100 in value, for it secured the repayment of Rs. 99 plus Rs. 6, the interest for three months. This was the least sum that could have been recovered under the instrument. The instrument not having been registered we cannot act upon it. Nor can we decree the debt apart from the lien, for the agreement should have been but was not registered, and more than four years had elapsed prior to suit from the date on which the agreement to repay the money was broken. This claim was therefore barred by limitation. The appeal is decreed, and, the decree of the lower appellate Court being reversed, the decree of the Court of first instance is restored with costs.