In Brief
A farmer sued to declare a Sale Deed from 1972 null and void, claiming it was merely a mortgage to secure a loan, not a true sale. The Sale Deed was accompanied by a separate agreement promising reconveyance if the farmer repaid Rs.5,000 by the following year. The trial and high courts found that the deed and agreement, executed together, showed the parties' real intention was security for debt, not sale. The Supreme Court upheld this, holding that despite the deed's form, the inadequate consideration (Rs.3,000 for land worth over Rs.15,000) and the reconveyance clause demonstrated it was a mortgage. Since the loan was repaid, the farmer was entitled to declaration and recovery of the property.
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