LEELA AGRAWAL versus SARKAR & ANR.

LEELA AGRAWAL versus SARKAR & ANR.

The mortgage deed dated 17.10.1990 satisfied all statutory ingredients of a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882 (ostensible sale, conditional conversion to absolute sale on default, and condition embodied in the same document); permissive possession by the mortgagor did not change the character of the transaction; consequently the condition converting the mortgage into an absolute sale upon default was valid and enforceable, the plaintiff failed to repay within the stipulated period and was not entitled to redeem, and the appeals by the defendant were allowed and the plaintiff's suit was dismissed.

Parties
Appellant (defendant in Suit): Sarkar & Anr.; Respondent (plaintiff in Suit): Leela Agrawal
Jurisdiction
India
Judgment Date
19 November 2024
Procedural Posture
Civil Appeal / Appeal to the Supreme Court Against High Court Judgment
Outcome
Appeals allowed; suit dismissed.
Legal Topics
Mortgage by Conditional Sale, Redemption, Equity of Redemption, Possessory Rights, Section 58(c)
Transfer of Property Act, 1882 Chhattisgarh Land Revenue Code, 1959 Specific Relief Act, 1963 Mortgage Law Property Law Mortgage by Conditional Sale Redemption Equity of Redemption +2 more

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Parties

Sarkar & Anr.

Appellant (defendant in Suit)

Leela Agrawal

Respondent (plaintiff in Suit)

Procedural Posture

Civil Appeal / Appeal to the Supreme Court Against High Court Judgment

Legal Issues

  1. 1 Whether the mortgage deed dated 17.10.1990 constitutes a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882, and whether the plaintiff is entitled to redeem the mortgage.

Ratio Decidendi

The mortgage deed dated 17.10.1990 satisfied all statutory ingredients of a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882 (ostensible sale, conditional conversion to absolute sale on default, and condition embodied in the same document); permissive possession by the mortgagor did not change the character of the transaction; consequently the condition converting the mortgage into an absolute sale upon default was valid and enforceable, the plaintiff failed to repay within the stipulated period and was not entitled to redeem, and the appeals by the defendant were allowed and the plaintiff's suit was dismissed.

Court Disposition

Appeals allowed; suit dismissed.

Orders

  • Judgments and decree of the High Court of Chhattisgarh at Bilaspur in FA No.28 of 2004 and Review Petition No.222 of 2018 set aside
  • Judgment and decree of the Additional District Judge, Manendragarh in Civil Suit No.26-A/2001 set aside and the suit dismissed