1. Heard Mr. Anil Singh, learned Additional Solicitor General for the Appellant-Union of India, and Mr. Iqbal Chagla, learned Senior Counsel for Respondent Nos.1 and 2.

2. This Appeal takes an exception to the 'Judgment and Decree' dated 29th November 2016 passed by District Judge-4, Kalyan in Regular Civil Appeal No. 9 of 2016, which was preferred against the 'Judgment and Decree' dated 30th April 2012 passed by the Civil Judge, Senior Division, Kalyan in Special Civil Suit No. 99 of 2006.

3. The said Suit was filed by Respondent Nos. 1 and 2 herein for the 'Decree of Redemption' in respect of the mortgaged properties and for directing the present Appellant to re-convey the said property in their favour, at their costs, by accepting the mortgage debt due and payable. Along with the 'Decree of Redemption' and possession of the suit properties, the ancillary relief’s were also claimed of taking of accounts, adjusting the amount earned out of the suit properties towards mortgaged debt etc.

4. The suit properties are, totally seven in number, situate at Ambernath, Kalyan, consisting of the land together with the tenements, dwelling houses and buildings standing thereon and they are described in detail in paragraph Nos.1 to 5 of the plaint. These properties were left behind by its erstwhile owner Ahmed Abdul Karim Brothers, when, after the partition, he left for Pakistan along with his family members. The Government of India has, by notification dated 10th March 1955, under Section 12(1) of the Displaced Persons (Compensation and Rehabilitation) Act, 1954, acquired these evacuee properties and agreed to sell the same to late Rajnath, who has, along with his family, migrated to India during the partition. The properties were agreed to be sold for a consideration of Rs.50,11,000/-. On the date of the Agreement dated 14th August 1957, late Rajnath has paid the amount of Rs.2,00,000/- as and by way of earnest money. The balance amount of Rs.48,11,000/- was to be paid as per the time-schedule given in Clause No.3 of the 'Agreement'. Clause No.5 of the 'Agreement' further provided that, upon payment of Rs.28,00,000/-, the Vendor, i.e. the Government of India, would execute a 'Deed of Conveyance' in favour of the purchaser-late Rajnath and immediately after execution of the said 'Conveyance', Rajnath shall, at his own costs, execute in favour of the Government of India an 'English Mortgage' of the said properties to secure the payment of the unpaid installments of the purchase price, with interest thereon. Clause No.10 of the 'Agreement' further provided that, the 'Deed of Conveyance' shall be a 'grant' for the purposes of the Government Grants Act, 1895.

5. It is undisputed that, in the arbitration between Ambernath Mills Corporation and the Custodian of evacuee properties, the Arbitrator had decided the further sum of Rs.18,00,000/-, which was to be payable by the said Ambernath Mills Corporation. This amount was agreed to be paid by late Rajnath to the Government of India and it was also agreed that, it would be considered as part payment of the consideration towards purchase of the said properties. Thus, total amount payable towards the consideration was Rs.48,11,000/-.

6. A 'Supplemental Deed' to the said 'Agreement' dated 14th August 1957 came to be entered into between the parties on 29th April 1959, by which the period for payment of remaining consideration amount was varied. Under this 'Supplemental Deed', the Government of India has acknowledged receipt of Rs.20,00,000/- from late Rajnath and it was agreed that the balance amount of Rs.48,11,000/- was to be paid in seven equal installments. Except for the variation in the schedule for payment of the remaining amount, all the terms and conditions of the earlier 'Agreement' dated 14th August 1957 remained unchanged.

7. Thereafter, on 6th April, 1960, the second 'Supplemental Deed' to the principal 'Agreement' dated 14th August 1957 was executed, by which it was inter alia pro