Case Note & Summary
The case involves a dispute over the interpretation of a deed executed between the parties, termed as 'conditional sale'. The appellant (original defendant) contended that it was an absolute sale with a condition of repurchase, while the respondent (original plaintiff) argued it was a mortgage by conditional sale. The Trial Court held it to be an absolute sale with an agreement for repurchase. The first Appellate Court reversed this finding, holding the document to be a mortgage by conditional sale and ordered reconveyance of the suit property upon redemption. The High Court, in second appeal, considered the question of law regarding the interpretation of the deed. The court noted that the plaint, as amended, clearly made out a case of mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882, and sought reconveyance effectively in redemption of mortgage. The court held that the suit for reconveyance against repayment of the mortgage money was a suit for redemption under Section 60 of the Act. The court dismissed the appeal, upholding the first Appellate Court's decision that the transaction was a mortgage by conditional sale and that the plaintiff was entitled to redemption.
Headnote
A) Transfer of Property Act - Mortgage by Conditional Sale - Section 58(c) - Interpretation of Deed - The deed termed 'conditional sale' was held to be a mortgage by conditional sale where the relationship of debtor and creditor existed and the debt was secured by the property - The court considered the intention of parties and the surrounding circumstances to determine the true nature of the transaction - Held that the document was a mortgage by conditional sale (Paras 2-4).
B) Transfer of Property Act - Right of Redemption - Section 60 - Suit for Redemption - The suit for reconveyance against repayment of mortgage money was treated as a suit for redemption - The amendment of plaint making out a case of mortgage by conditional sale was held to be sufficient to grant relief of redemption - Held that the plaintiff was entitled to redeem the mortgage (Paras 3-4).
Issue of Consideration
Whether the deed executed between the parties, termed as 'conditional sale', is an absolute sale with a condition of repurchase or a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882.
Final Decision
The Second Appeal is dismissed. The judgment of the first Appellate Court holding the deed to be a mortgage by conditional sale and ordering reconveyance is upheld.
Law Points
- Interpretation of deed as mortgage by conditional sale
- Right of redemption under Section 60 of Transfer of Property Act
- 1882
- Amendment of plaint to include mortgage claim
- Suit for reconveyance as suit for redemption
Case Details
SECOND APPEAL NO.369 OF 2013 WITH CIVIL APPLICATION NO.1011 OF 2013
Mr. Vijay Patil, for the Appellant. Mr. Vivek Salunke, for the Respondent.
Sou Mangal Popatrao Sodmise
Sou. Abdagiri Vishvanath Narale, Through her Power of Attorney holder Shri. Lahu Vishvanath Narale
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Nature of Litigation
Second Appeal against the judgment of the first Appellate Court which reversed the Trial Court's finding and held the deed to be a mortgage by conditional sale.
Remedy Sought
The respondent (original plaintiff) sought reconveyance of the suit property in redemption of mortgage.
Filing Reason
Dispute over the nature of a deed termed 'conditional sale' - whether it was an absolute sale with a condition of repurchase or a mortgage by conditional sale.
Previous Decisions
Trial Court held the document to be an absolute sale with an agreement for repurchase. First Appellate Court reversed and held it to be a mortgage by conditional sale, ordering reconveyance.
Issues
Whether the deed executed between the parties is an absolute sale with a condition of repurchase or a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882.
Whether the suit for reconveyance can be treated as a suit for redemption under Section 60 of the Transfer of Property Act, 1882.
Submissions/Arguments
Appellant argued that the deed was an absolute sale with a condition of repurchase and that the plaint, as amended, did not contain a specific prayer for redemption of mortgage.
Respondent argued that the deed was a mortgage by conditional sale and the suit for reconveyance against repayment of mortgage money was effectively a suit for redemption.
Ratio Decidendi
The deed termed 'conditional sale' was interpreted as a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882, based on the relationship of debtor and creditor and the surrounding circumstances. The suit for reconveyance against repayment of mortgage money was held to be a suit for redemption under Section 60 of the Act.
Judgment Excerpts
This Second Appeal involves a question as to the interpretation of a deed executed by and between the parties termed as 'conditional sale'.
The plaint, as amended, clearly makes out a case of a mortgage by conditional sale and seeks reconveyance effectively in redemption of mortgage.
Procedural History
The suit was originally filed for reconveyance based on a deed of conditional sale. The plaint was amended to claim that the transaction was a mortgage by conditional sale. The Trial Court held it to be an absolute sale with an agreement for repurchase. The first Appellate Court reversed and held it to be a mortgage by conditional sale, ordering reconveyance. The appellant filed a Second Appeal in the High Court.
Acts & Sections
- Transfer of Property Act, 1882: Section 58(c), Section 60
