(Appeal under Section 100 CPC against the decree in AS No.270 of 1987 dated 05-10-1992 on the file of the Court of I Additional Chief Judge, City Civil Court, Secunderabad preferred against the decree in OS No.2777 of 1979 dated 31-08-1997 on the file of the court of I Assistant Judge, City Civil Court, Secunderabad).

Common Judgment: (B. Seshasayana Reddy)

These two Second Appeals are listed before us on a reference being made by learned single Judge for an authoritative pronouncement on the questions formulated, which are extracted hereunder:

1) Whether in the facts and circumstances of the case, especially, the documentary evidence placed before the Court, relating to the obtaining of delivery by rent control proceedings, whether Ex.A2 = Ex.B.10 to be treated as out and out sale or a mortgage by conditional sale or an anomalous mortgage and whether the transaction would be governed by Section 58[c] or 58[g] of the Transfer of Property Act, 1882?

2) Whether extraneous evidence can be let in to explain the nature of transaction in the light of the clear recitals made in Ex.A1 = Ex.B.10 in the facts and circumstances of the case?

2. Background facts of the case leading to filing of these two Second Appeals, in brief, are: Smt. Muttamalla Narasamma, wife of Lingaiah, was the owner of premises bearing Nos.6-4-61 and 6-4-62 situated at Bholakpur, Secunderabad. She executed a sale deed dated 26.03.1969 in favour of Yerram Narayana, who died and survived by Yerram Krishna Rao. According to Muttamalla Narasamma, she borrowed Rs.1,000/-from late Yerram Narayana and executed a sale deed as a security for the loan. She claims to be in possession of the property despite executing a sale deed in favour of Yerram Narayana. According to her, she has been paying interest at the rate of Rs.25/-per month on the amount lent by Yerram Narayana. When the wife and son of late Yerram Narayana threatened to dispossess her from the suit house, she expressed her willingness to repay the loan amount and requested them to redeem the mortgage. It is also her case that late Yerram Narayana acknowledged the interest received by him in a notebook maintained by her. After the death of Yerram Narayana, his son Yerram Krishna Rao received the interest on the principal amount of Rs.1,000/- and acknowledged in a notebook maintained by her. Since few days prior to the filing of the suit, Yerram Krishna Rao refused to acknowledge the receipt of interest. That late Yerram Narayana was doing money lending business and was obtaining sale deeds as a security for repayment of the amounts and after repayment of the amounts, he used to reconvey the same. Since Yerram Krishna Rao refused to receive the principal amount of Rs.1,000/- with interest thereon and redeem the property, she filed the suit being O.S.No.2777 of 1979 on the file of I Assistant Judge, City Civil Court, Secunderabad, for redemption. The reliefs sought for in the said suit read as hereunder:

a) To pass a preliminary decree for redemption under Order 34 Rule 7 C.P.C.;

b) To declare the amount payable by plaintiff to defendant under the mortgage together with interest from the date of suit till final payment.

c) To fix a date for redemption for payment of loan amount by plaintiff to the defendant.

d) To direct the defendant to reconvey at the cost of the plaintiff free from encumbrances and deliver the documents of title belonging to the plaintiff, on payment of amount declared to be due.

e) To award costs of the suit, and

f) To pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case.

3. Smt. Samala Earamma filed a suit being O.S.No.540 of 1980 on the file of I Assistant Judge, City Civil Court, Secunderabad, alleging inter alia that she purchased the suit schedule house under an agreement of sale dated 28.05.1979 from Yerram Krishna Rao. The suit schedule house is adjacent to the house owned by her. She was put in possession of the house