Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Transfer of Property Act 1882 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Transfer of Property Act, 1882 (4 of 1882) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Issue for consideration: Transaction between the parties whether an absolute sale of the property or a mortgage. Transfer of Property Act, 1882 – s.58(c) – Two documents executed on same day, Sale Deed and Reconveyance Deed/agreement of buy back deed, transaction if mortgage or absolute sale of the property: Held: Proviso to sub-section (c) of s.58 provides that no transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which eff ects or purports to eff ect the sale – In the present case, admittedly, there are two separate documents – Sale Deed was an absolute sale for a total sale consideration of 5,000/- required by the vendor to meet domestic expenses and to meet education expenses of his minor son (appellant) and to discharge some debts – Possession of the property was to be delivered on registration of the Sale Deed – The vendee was entitled to get the mutation entered in her name and enjoy the property by paying the taxes, if any – She would become an absolute owner thereof from generation to generation – There were no encumbrances attached to the property – Further, the agreement of buy back mentioned that after registration of the Sale Deed, the vendor had requested the vendee to resell the property within the time given – The vendee granted him fi ve years’ time to repurchase the property in case sale consideration of ` 5000/- was paid – It was agreed that the agreement shall cease immediately after expiry of 5 years – Thus, in terms of the Sale Deed and the Reconveyance Deed, reconsidered in the light of the enunciation of law, the same cannot be held to be a transaction of mortgage of property – Sale of property initially, was absolute – By way of execution of Reconveyance Deed on the same day, the only right given to the appellants was to repurchase the property – No error in the judgment of the High Court upholding the decree of the trial Court by which the suit fi led by the appellant for redemption of mortgage was dismissed. Transfer of Property Act, 1882 – s.58(c) – Scope: Held: The proviso was added in s.58(c) so as to put at rest the confl icting decisions on the issue – A deeming fi ction was added in the negative that a transaction shall not be deemed to be a mortgage unless the condition for reconveyance is contained in the document which purports to eff ect the sale. |
Judge | Hon'ble Mr. Justice Rajesh Bindal |
Neutral Citation | 2023 INSC 743 |
Petitioner | Prakash (dead) By Lr. |
Respondent | G. Aradhya And Ors. |
SCR | [2023] 12 S.C.R. 1034 |
Judgement Date | 2023-08-18 |
Case Number | 706 |
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