In Brief
The Supreme Court held that a deed dated 21 April 1953, transferring agricultural land for Rs 700 but containing a clause allowing redemption within ten years, was a mortgage by conditional sale, not a sale with an option to repurchase. The land was valued at Rs 3,500, and the parties had a long-standing debtor-creditor relationship. The Court emphasized that the classification depends on holistic consideration of property valuation, consideration amount, duration for reconveyance, the deed's language, and surrounding circumstances. A mortgage by conditional sale requires a clause for reconveyance in the same document, a debtor-creditor relationship, and typically an inordinately long reconveyance period. The High Court's reversal was set aside, and the appeals were allowed.
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