Summary
The single conditional-sale instrument was a mortgage by conditional sale, construed from its terms and the loan transaction. Redemption was within Article 61(a)’s thirty-year period. To end further litigation, the Court also directed return of the subsequent purchaser’s consideration and joint execution of the reconveyance.
Issues
- Whether the instrument created a mortgage or an outright sale with repurchase.
- Whether redemption was timely and what consequential relief was appropriate.
Provisions considered
- Section 58(c), Transfer of Property Act, 1882The condition within the single instrument and its terms established a mortgage by conditional sale. (¶ 20–29)
- Article 61(a), Limitation Act, 1963Thirty years from accrual governed this redemption suit. (¶ 34)
- Article 142, Constitution of IndiaUsed to direct the consequential refund between defendants and avoid another suit. (¶ 37–41)
Held
- One document, the conditional reconveyance upon repayment, possession and enjoyment pending repayment, and supporting evidence showed a secured loan. A single document alone is not invariably determinative. (¶ 24–29)
- The five-year period expired in July 1974; the September 1987 suit was within thirty years. (¶ 34)
- Plaintiffs must deposit Rs.1,500 for the original defendant’s representatives; those representatives must deposit Rs.30,000 for the subsequent purchaser, both within three months. Both defendants must jointly convey and deliver possession, then withdraw the respective deposits. (¶ 41–42)
Result
Appeals disposed of with the modified decree and time-bound deposits, joint conveyance and delivery directions.