In Brief
A widow mortgaged agricultural land to a woman in 1990 for ₹75,000 with an agreed repayment period of three years. The mortgage deed expressly provided that if the mortgagor failed to repay within three years, the transaction would become an absolute sale. The mortgagor remained in possession, failed to repay, and later sued for the right to redeem. The lower courts held the condition was a clog on equity of redemption and decreed redemption. The Supreme Court reversed, finding the mortgage deed satisfied all statutory requirements of a conditional sale under Section 58(c) of the Transfer of Property Act. The mortgagor's permissive possession did not negate the conditional sale character. The suit was dismissed; the mortgagor was ordered refunded her deposit with interest.
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