Case Law Details
Prakash (Dead) Vs G. Aradhya & Ors (Supreme Court of India)
Conclusion: In present facts of the case, the Hon’ble Supreme Court observed that when in a Conveyance deed the arrangement of re-purchase was provided then the said agreement cannot be treated as a Mortgage Agreement unless the condition is embodied in the document which effects or purports to effect the sale.
Facts: In present facts of the case, the appellant has filed the present appeal impugning the judgment of the High Court of Karnataka at Bangalore by which the Appeal filed by the appellant against the judgment and decree of the trial Court was upheld. In 1963, a property was purchased by the father of the appellant, in the name of the appellant, who was minor at that time. In 1973, the father of the appellant, sold the aforesaid property to one Rudramma for a sum of ₹5000/-. The age of the appellant, who claimed himself to be minor at that time, was mentioned as 13 years. On the same day, another unregistered document was executed between the parties claiming to be Reconveyance Deed in terms of which on the request of the vendor, the vendee had agreed to re-transfer the property back within five years of the Sale Deed in case the sale consideration of ₹5000/- (Rupees Five Thousand) is paid.
A notice dated 24.11.1978 was got issued by the father of the appellant to the vendee seeking execution of the Conveyance Deed back in favour of the vendor in terms of the Reconveyance Deed executed on 24.12.1973. The same was replied to by the vendee-Rudramma through her counsel on 02.12.1978 stating that the Sale Deed dated 24.12.1973 was not a mortgage by conditional sale. It was an outright sale of the property. It was admitted that on the same date, an agreement of reconveyance was entered into. On 24.07.1978, a suit was filed by Rudramma seeking eviction of the Gangaramaiah in terms of the Lease Agreement dated 24.12.1973 as he had not been paid the rent. While reserving her rights in the aforesaid suit, Rudramma stated in the reply to the notice that she is ready and willing to get the Conveyance Deed executed on receipt of ₹ 7000/-.
A suit was filed by Ganagaramaiah seeking permission from the Court to mortgage the property of the minor. A public notice was issued inviting objections. Vide order dated 27.09.1978 permission was granted to execute fresh Mortgage Deed in order to discharge the earlier mortgage for a sum of ₹7000/-. On 26.03.1987, the legal heirs of Rudramma sold the property in-question in favour of defendant no.4 in the suit, who died on 30.04.1987. A suit was filed by the appellant praying for various reliefs, which was dismissed by the trial Court. The judgment of the trial Court was upheld by the High Court.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
