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2010 Supreme(Kar) 129

IN THE HIGH COURT OF KARNATAKA
CIRCUIT BENCH AT GULBARGA
H.N. NAGAMOHAN DAS, J.
TUKARAM (DEAD) BY L.Rs
Versus
HEMALATHA (DEAD) BY L.Rs AND OTHERS
Regular Second Appeal No. 163 of 2000.
Decided on : 4th February, 2010

Advocates appeared:
Sri Sanjeev Kumar C. Patil for Sri Manikappa Patil, Advocate for Appellants;
Sri R.S. Sidhapurkcr and Sri S.R. Shivaprakash, Advocates for Respondents.

Headnote:INDIAN EVIDENCE ACT, 1872 - Section 92: [H.N. NagamohanDas,J] Bar against adducing oral evidence of existence of any oral agreement for purpose of contradicting, varying, adding to or subtracting form terms of written document - Held, Where one party to written instrument does not depend upon it and alleges it to be sham, it is open to that party to prove by oral evidence that there was another and different agreement, oral one, which they had entered into as binding agreement and that written instrument was made on avowed understanding that it was not to be treated as real, nor to be acted upon. Where party claims that sale deed executed by him in respect of his dwelling house was intended to be mortgage deed and that subsequent rent agreement executed by him in favour of mortgagee to pay monthly rental was for discharging interest liability in respect of mortgage loan while continuing to remain in possession of his own house, party is entitled to prove his claim by adducing evidence. Where party has proved his claim, Trial Court, had rightly decreed his suit for declaring instrument as mortgage deed and for injunction to restrain mortgagee from continuing eviction proceedings under the Karnataka Rent Act,1999. First Appellate Court erred in reversing decree passed by Trial Court. Judgment and decree passed by First Appellate Court was set aside, and that of Trial Court restored.

JUDGMENT

This second appeal is directed against the judgment and decree dated 13-12-1999 in R.A. No. 12 of 1986 passed by the Additional District Judge at Bidar.

2. Appellant is the plaintiff and respondents are the defendants before the Trial Court. In this judgment, for convenience, the parties are referred to their status before the Trial Court.

3. It is the case of the plaintiff that he and defendant 3 are brothers. Defendants 4 to 6 are the children of defendant 3. Plaintiff and defendants 3 to 6 mortgaged the plaint schedule property in favour of one Sadanand Garje in the year 1968. Further, defendants 3 to 6 also mortgaged another property in favour of said Sadanand Garje in the year 1971. The said Sadanand Garje demanded the mortgage money of Rs. 10,000/- as he wanted to purchase another house. Since the plaintiff and defendants 3 to 6 did not had money to repay the mortgage money, they offered to mortgage the schedule property in favour of defendant 2. After negotiations defendant 2 demanded to execute a sale deed for a consideration of Rs. 10,000/- with an assurance that they will not act upon the sale deed and the same will be treated as a mortgage deed. Further towards payment of interest at 2% on the mortgage amount of Rs. 10,000/-, defendant 2 demanded the plaintiff and defendants 3 to 6 to execute a rent deed. The plaintiff and defendants 3 to 6 having no other alternative, agreed to the demand of defendant 2 and executed a registered sale deed in favour of his wife the defendant 1, on 12-11-1971. On the same day, a rent deed was also executed agreeing to pay a sum of Rs. 200/- as rent in lieu of interest on the mortgage amount. Even after the sale deed dated 12-11-1971, the plaintiff continued to be in possession of the schedule property, paid house tax and khatha also continued in his name. After sale transaction on 12-11-1971, the plaintiff also paid regularly the interest and finally a sum of Rs. 8,426/towards discharge of mortgage money under Ex. P. 2. The defendants and 2 instead of discharging the mortgage, got issued a lawyer's notice demanding arrears of rent and also filed an eviction petition in HRC No. 16 of 1975 on the file of the then Munsiff at Bidar. Thereafter, the plaintiff filed O.S. No. 39 of 1977 for a declaration to declare that the sale deed dated 12-11-1971 as nominal, sham and not acted upon and also for restraining the defendants 1 and 2 from evicting the plaintiff from the schedule property and from continuing the eviction proceedings in HRC No. 16 of 1975.

4. The defendants 1 and 2 entered appearance before the Trial Court and filed written statement inter alia contending that the sale deed dated 12-11-1971 is true and genuine. The plaintiff instead of paying arrears of rent and vacating the schedule premises, filed O.S. No. 39 of 1977 as a counter blast. It is further denied that the transaction dated 12-11-1971 as mortgage transaction. On these grounds, the defendants 1 and 2 opposed the claim of the plaintiff The other defendants in the suit have not filed written statement.

5. On the basis of the pleadings, the Trial Court framed the following issues for its consideration:

"1. Whether plaintiff proves that the sale of the suit house dated 12-11-1971 was nominal and was executed by way of security for the loan amount of Rs. 10,000/- advanced by defendant 2 for the payment of earlier mortgage debt?

2. Does he further prove that the subsequent rent deed executed receiving the monthly rent of Rs. 200/- was also of the same nature executed towards interest?

3. Does he further prove the repayment of subsequent amount of the said debt alleged?

4. If so, is he entitled to declaration?

5. Is he entitled to injunction?

6. What decree or order?"

6. Before the Trial Court the plaintiff examined 5 witnesses as P.Ws. 1 to 5 and got marked Exs. P. 1 to P. 17. The defendants examined 4 witnesses as D.Ws. 1 to 4 and got marked Exs. D. 1 to D. 9. The Trial Court after hearing the arguments on both side and by

























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