In Brief
In this appeal, the Supreme Court upheld a high court judgment that set aside a trial court's dismissal of a suit for title declaration and security redemption. The dispute centred on whether a 1970 written agreement (Kabala) was a loan or outright sale. The plaintiff remained in actual possession despite the agreement, and the price was shockingly disproportionate to the property's value. Applying the Bengal Money-Lenders Act, 1940, which allows oral evidence to challenge written agreements and treats substance-based loans as loans even when formally documented as sales, the Court affirmed that the transaction was a loan. The appeal was dismissed, confirming the plaintiff's right to redemption.
The lawyer headnote and full judgment text are available to registered users.