Casy Lebbe Marikar vs Aydroos Lebbe Marikar – clr volume 1 page 001

The case between M. M. Abdul Rahman (Respondent/Claimant) and the plaintiff/appellant, who initiated a sale of a debtor’s shop goods under judgment, addressed the issue of whether a mortgagee of moveable property—secured by a written hypothecation without delivery of possession—retains a preferential claim over the proceeds of a judicial sale initiated by an unsecured creditor. It was held that the hypothecation remains valid after such a sale, entitling the hypothecary creditor to satisfaction from the proceeds up to the amount of the debt, without deduction for the costs incurred by the unsecured creditor. This outcome reaffirmed the principle, under Roman Dutch Law and Ordinance 8 of 1871, that “mobilia non habent sequelam” does not negate the right of a special mortgagee to claim proce