CHIDAMBARAIYER AND OTHERS vs P. S. RENGA IYER AND OTHERS

The Supreme Court held that the transfer of mortgagee's rights to a charity was for valuable consideration under Section 9A(10)(ii)(b) of the Madras Agriculturists Relief Act, as the family was discharging an obligation to the charity. The Court clarified that consideration can be both negative and positive, and in this case, the charity's agreement not to enforce its right to recover a sum constituted valid consideration. Consequently, the Court upheld the High Court's decision that the mortgage debt was not liable to be scaled down.