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2012 Supreme(Chh) 30

HIGH COURT OF CHHATTISGARH, BILASPUR
T.P. SHARMA, J
MANGTIN BAI & OTHERS – APPELLANTS
VERSUS
RAHIBAI & OTHERS – RESPONDENTS
Second Appeal No.6 of 1994
Decided on : 24-1-2012

Advocates appeared:
For the Appellants :Mr. Ravish Chandra Agrawal, Senior Advocate with Mr. Sumesh Bajaj, Advocates.
For the Respondents:Mr. H.B. Agrawal, Senior Advocate with Mrs. Meera Jaiswal, Advocate.

The burden of proof in determining the nature of a transaction, especially in cases involving minors, lies with the party asserting the nature of the transaction. Contradictions in testimony and the failure to consider evidence can influence the court's decision.

Headnote:

Mortgage - Property Dispute - Code of Civil Procedure, 1908 - Sections 100, 91, 92 - Hindu Minority and Guardianship Act, 1956 - Section 8 - Specific Relief Act - Section 6

Fact of the Case:

The dispute revolved around whether a transaction was a mortgage or an outright sale. The respondent claimed to have purchased the property, while the appellants argued it was a loan transaction. The lower appellate Court decreed the suit for possession in favor of the respondents, which was challenged in the second appeal.

Finding of the Court:

The Court found that the transaction was a mortgage and not an outright sale, based on the evidence and contradictions in the respondent's testimony. It held that the burden to prove the transaction as an outright sale was on the respondent, and the lower appellate Court had erred in shifting this burden to the appellants.

Issues: The main issue was to determine the nature of the transaction - whether it was a mortgage or an outright sale. The Court also addressed the applicability of the Hindu Minority and Guardianship Act, 1956, and the Specific Relief Act.

Ratio Decidendi: The Court's decision was influenced by the burden of proof, contradictions in the respondent's testimony, and the failure of the lower appellate Court to consider the submissions and evidence. It also considered the provisions of the Evidence Act and legal principles related to transactions involving minors.

Final Decision: The appeal was allowed, and the judgment & decree of the lower appellate Court were set aside, restoring the judgment & decree of the trial Court. Each party was ordered to bear their own costs.

JUDGMENT

1. By this second appeal under Section 100 of the Code of Civil Procedure, 1908 (for short 'CPC'), the appellants have challenged legality and propriety of the judgment & decree dated 5.11.93 passed by the First Additional District Judge to the Court of the District Judge, Raipur, in Civil Appeal No.76-A/91, reversing the judgment & decree of dismissal of the civil suit dated 5.12.84 passed by the Third Civil Judge Class-II, Raipur, in Civil Suit No.468A/84.

2. Present second appeal was admitted for consideration on 1.7.94 on the following substantial question of law:-

"Whether the transaction entered into between the parties, EX.P-1 is a mortgage or a sale outright?"

3. As per claim of respondent No.1 Rahi Bai, Rahi Bai has purchased the suit property bearing khasra No.720 area 1.38 hectare situated at village Tulsi P.H. No. III, district Raipur vide registered sale deed dated 15.4.1976 on payment of consideration of Rs.3000/- and obtained possession, name of respondent No.1 has been mutated vide order dated 16.3.79. The appellants have committed theft of the crop sown by respondent No.1, then respondent No.1 has lodged the F.I.R., she was dispossessed by the appellants in the year 1979. Then suit for possession has been filed on behalf of respondent No.1 on 12.8.80. By filing written statement the present appellants had denied the adverse allegation and have specifically pleaded that appellant No.1 has taken loan for her family on 15.4.76 and has executed one document in the shape of sale deed for security of loan. Respondent No.1 was in possession with the connivance of revenue officer, she was succeeded in mutation of her name and she has also lodged report against the appellants. Appellant No.1 was not competent to alienate the property of minors without permission of the District Judge. During pendency of the suit, respondent No.1 has executed sale deed in favour of Ajit, predecessor-in-title of respondents No.2(i) to 2(vi), therefore, he was impleaded as a party. After providing opportunity of hearing to the parties, the Third Civil Judge Class-II, Raipur has dismissed the suit for possession and held that transaction between the parties was loan transaction. Same was challenged before the lower appellate Court and vide judgment & decree impugned the lower appellate Court has reversed the judgment & decree passed by the Third Civil Judge Class-II and decreed the suit for possession in favour of the respondents.

4. I have heard learned counsel for the parties, perused the impugned judgment & decree, judgment & decree of the trial Court and records of the Courts below.

5. Learned counsel for the appellants vehemently argued that present appellant No.1 Mangtin Bai, mother of other appellants, has taken loan from respondent No.1 Rahi Bai and has executed the document in the shape of sale deed, but same was only for security of loan, it was never intended to act upon the document was sham and nominal. Appellant No.1 was not competent to alienate the property of minor appellants No.2 to 9 without valid permission from the District Judge. By adducing evidence the present appellants have proved the fact and discharged their burden that it was not outright sale but was mortgage. Respondent No.1 has examined herself and as per finding of the trial Court same is unreliable witness. Respondent No.1 has failed to prove the fact that transaction is sale, but by adducing documentary and oral evidence the present appellants have discharged their burden. The appellants have succeeded in proving the fact that transaction was not sale, but for security of loan. Learned counsel further argued that respondent No. 1 has specifically admitted in previous proceeding that she has given loan to appellant No.1 which she has returned and she had not seen the field, was admission of respondent No.1 and was sufficient to discharge the factum of execution of sale deed.

6. Learned counsel placed reliance in the matter of Sara Veeraswami alias Sara V





























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