(1.) THIS is a creditor's appeal and the main point that arises is under Madras Act IV of 1938.
(2.) MOST of the material facts are not in dispute. In 1930 the first defendant executed in favour of the plaintiff (appellant) three deeds of mortgage, Exhibits A, B and C for Rs. 1,500, Rs. 1,500 and Rs. 900 respectively. Admittedly, no payments were made towards any of the mortgages till August, 1935, when an arrangement was arrived at between the plaintiff and several persons who had purchased portions of the hypotheca from the first defendant. This arrangement was embodied in Exhibit E, dated 19th August, 1935. After reciting the mortgages it is stated in Exhibit E that the balance in respect of those debts on 19th August, 1935, stood at the figure of Rs. 6,130. It is then provided that
(3.) TWO questions arise in this second appeal : (1) whether Exhibit C was completely discharged by the execution of the sale deed, Exhibit F -2; and (2) whether the amounts mentioned as consideration for the other four sale deeds, namely Exhibits F, F -1, F -3 and F -4 were open payments towards Exhibits A and B or whether there was an appropriation in respect of those amounts.