In Brief

A plaintiff who borrowed ₹3,000 by executing a document titled "conditional sale deed" in 1969, in which he undertook to repay the amount within one year to regain possession of his agricultural land, sued for redemption after 20 years. The High Court dismissed his suit, treating the transaction as a permanent sale. The Supreme Court held that the document constitutes a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882, as it embodies a condition for retransfer and creates a debtor-creditor relationship. The Court decreed the suit for redemption, holding that the suit was within the statutory period of limitation (30 years from the redemption date) and that the mortgagee's possession and improvement of the property compensated him beyond the mortgage amount due.

The lawyer headnote and full judgment text are available to registered users.