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Issues Involved:
1. Whether the suit document is a mortgage by conditional sale or a sale with a condition of repurchase. Issue-wise Detailed Analysis: 1. Whether the suit document is a mortgage by conditional sale or a sale with a condition of repurchase: The primary issue in this appeal was to determine whether the document in question constituted a mortgage by conditional sale or an outright sale with a condition of repurchase. The appellants argued that the document was a mortgage by conditional sale, while the respondents contended it was an outright sale. Facts of the Case: On February 2, 1924, the appellants executed a deed conveying 12.6 acres of property to the respondents for Rs. 2,800/- and transferred possession. In 1950, the appellants sought redemption, claiming the document was a mortgage by conditional sale. The trial court and the Subordinate Judge ruled in favor of the appellants, but the High Court reversed this decision, declaring it an outright sale. The appellants then appealed to the Supreme Court. Document Analysis: The Court analyzed the document's terms to ascertain the parties' intentions. The document included terms like "sold and vended" and provisions for re-conveyance upon repayment, which are typically associated with an outright sale. The Court noted that the document was created to meet pressing financial needs, not merely to renew an earlier mortgage. Legal Distinction: The Court emphasized the legal distinction between a mortgage by conditional sale and a sale with a condition of repurchase. In the former, the debtor-creditor relationship continues, and the right to redeem remains with the debtor. In the latter, the owner transfers all rights to the purchaser, reserving only a personal right of repurchase. Appellants' Arguments: The appellants' counsel argued that: - The consideration mainly discharged a prior sudbharna bond, suggesting a continuing debtor-creditor relationship. - The document lacked explicit words of conveyance and re-conveyance. - The executants retained liability for rent and created a charge on the property for refunding the consideration with interest in case of dispossession due to title defects. Court's Rebuttal: The Court found these arguments unconvincing, noting: - The document addressed multiple financial needs beyond repaying the sudbharna bond. - The terms "sold and vended" and provisions for re-conveyance were adequate, even if not in formal legal language. - The liability for rent was a neutral circumstance, possibly due to pre-existing obligations. - The charge on the property for refunding consideration was a standard legal provision, not indicative of a mortgage. Crucial Circumstance: A key factor was that the land's value matched the consideration amount, making it improbable that a mortgagee would lend an amount equal to the property's value without a margin for contingencies. This suggested an outright sale rather than a mortgage. Distinguishing Precedent: The Court distinguished the present case from "Pandit Chunchun Jha v. Sheikh Ebadat Ali," noting that the crucial circumstances in that case (e.g., continuation of revenue proceedings) were absent here. Conversely, the present case had its own crucial circumstance (sale of a smaller extent for a higher amount). Conclusion: The Supreme Court concluded that the document was an outright sale with a condition of repurchase, not a mortgage by conditional sale. The High Court's decision was upheld, and the appeal was dismissed without costs.
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