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1998 (5) TMI 342 - SC - Companies LawWhether the unregistered charge created by the mortgagor was kept alive or extinguished or replaced by an order of sale created by the decree; if upon a construction of the decree, the Court found that the unregistered charge was kept alive? Held that:- Appeal allowed. On the construction of the decree as already held that the charge was kept alive till 28-8-1982 and thereafter, in default of payment of decree amount the sale order would take effect. In this case, admittedly the decree amount was not paid before 28-8-1982, as such the matter had passed from the domain of contract to the realm of the judgment. The official liquidator filed application on 21-3-1983 seeking to declare the decree as void. By that date what was operative in the decree was not a mere unregistered charge but an order for sale of mortgaged property for realisation of decree amount. The preliminary decree cannot therefore be said to be void and inoperative. Thus the Division Bench ought not to have held that the preliminary decree passed by the Competent Court on 25-5-1980 was void and un-enforceable and accordingly we set aside the order under appeal dated 29-1-1986 by allowing the appeal with costs.
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