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2026 Supreme(Mad) 1390

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
K. MURALI SHANKAR, J.
Mokkammal – Appellant
Versus
V. Karuppanan, (died) – Respondent 
S.A.(MD).No.103 of 2017 and C.M.P(MD)No.1829 of 2017
Decided On : 10-04-2026

Advocates Appeared:
For the Appellants : Mr. S. Partha Sarathy
For the Respondents: Mr. J. Barathan, Mr. K. Vijay Sathya.

Absolute sale deed with separate repurchase agreement not mortgage; minors must challenge guardian’s alienation within 3 years of majority by seeking cancellation.

Headnote:(A) Transfer of Property Act, 1882 - Section 58(c) - Sale deed - Mortgage by conditional sale - Ancestral property sold by father and son - Whether for legal necessity - Whether binding on minors

(B) Hindu Law - Joint family - Kartha - Natural guardian - Sale of minor’s property - Legal necessity - Burden of proof

(C) Limitation Act, 1963 - Article 60 - Suit by minor after attaining majority - Time limit - Three years from attainment of majority

Facts of the case:
Father (first defendant) and son mortgaged ancestral property for Rs.40,000/-. Subsequent sale deed dated 04.01.2001 for Rs.65,580/- executed; alleged loan reached Rs.1 lakh. Children (plaintiffs) challenged as security transaction, seeking partition of 6/8 shares. Courts below upheld sale as absolute and for necessity. In second appeal, plaintiffs argue nominal sale and lack of legal necessity.

Findings of Court:
Ex.B.2 is absolute sale deed without embedded reconveyance clause. Right to repurchase extinguished due to non-payment within three years. Defendants 1 and 2 remained ex-parte. Discharge of antecedent debts is valid legal necessity. No recital proving lack of necessity. Suit bad; plaintiffs 2 to 6 not entitled to partition.

Issues: (1) Whether Ex.B.2 is mortgage/security or absolute sale. (2) Whether sale is supported by legal necessity and binding on minors. (3) Whether suit maintainable without cancellation prayer and barred by limitation.

Ratio Decidendi: Document styled as sale without reconveyance clause cannot be mortgage by conditional sale under Sec.58(c), T.P. Act. Ancestral sale to discharge debts is valid necessity. Minors must sue for cancellation within three years of majority under Art.60, Limitation Act; mere partition prayer without setting aside voidable deed is ineffective. Intention and recitals of document govern nature of transaction.

Result: Second Appeal dismissed with costs.

Table of Content
1. partition suit over ancestral property by wife and children (Para 1 , 2 , 3 , 4 , 5)
2. defence, issues framed and evidence led at trial (Para 6 , 7 , 8 , 9 , 10)
3. facts of mortgage and subsequent sale of ancestral property (Para 11 , 12 , 13 , 14 , 15)
4. whether sale is mere security or absolute conveyance (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25)
5. legal necessity for sale binding on minors established (Para 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34)
6. limitation and necessity of cancellation prayer for minors (Para 35 , 36 , 37 , 38 , 39 , 40 , 41)
7. second appeal dismissed; costs to third defendant (Para 42)

JUDGMENT :

K. MURALI SHANKAR, J.

1.The second appeal is directed against the judgment and decree made in A.S.No.29 of 2014, dated 05.04.2016 on the file of the Subordinate Judge, Paramakkudi, confirming the judgment and decree passed in O.S.No.58 of 2010 on the file of the learned District Munsif cum Judicial Magistrate, Kamudhi.

2.The appellants are the plaintiffs 1 to 5. They along with fourth respondent Sekar, filed a suit in O.S.No.58 of 2010, before the District Munsif cum Judicial Magistrate, Kamudhi, claiming partition and allotment of 6/8 shares in the suit property.

3. For the sake of convenience and brevity, the parties hereinafter will be referred as per their ranking/status before the trial Court.

4. The relationship not in dispute is that the first plaintiff is the wife of the first defendant and the plaintiffs 2 to 6 and the second defendant are their children. The third defendant is a third party-purchaser. Pending second appeal, the fourth appellant/plaintiff had died and his legal heirs were impleaded as the appellants 6 to 8 and the sixth appellant was appointed as guardian of minor appellants 7 and 8.

5.The case of the plaintiffs, in brief, is as follows :

a) The suit properties are the ancestral properties of the first defendant. The plaintiffs were constrained to get an encumbrance certificate on 11.01.2010 as the third defendant was claiming right over the suit property and they came to know that the defendants 1 and 2 had executed a mortgage deed, dated 13.11.1997 and subsequently, a sale deed, dated 04.01.2001, but the patta bearing No.157 continued to be in the name of the first defendant.

b) The plaintiffs and the defendants 1 and 2 are in possession and enjoyment of the suit property. At the time of execution of the sale deed by the defendants 1 and 2, the plaintiffs 2 and 3 were major and only the plaintiffs 4 to 6 were minors. Hence, the sale in favour of the third defendant will not bind the shares of the plaintiffs.

c) On enquiry, the defendants 1 and 2 admitted to have executed a sale deed for the loan availed by them from the third defendant and that the third defendant executed an agreement not to claim any right and title over the suit property and that the sale deed was executed only as a security for the loan. Hence, the plaintiffs were forced to file the above suit for partition and for allotment of 6/8 shares in the suit property.

6. The defence of the third defendant, in short, is as follows :

a) The suit properties are the ancestral properties of the plaintiffs and the defendants 1 and 2. The first defendant along with the second defendant for himself and as a guardian for minor plaintiffs 2 to 6 had mortgaged the suit property to the third defendant for Rs.40,000/- and the first defendant had agreed to repay the loan amount with interest at Rs.2/- per Rs.100/- per month. But the defendants 1 and 2 have failed to any amount towards principal or interest. But they availed further hand loans from the third defendant and the loan amount and interest had exceeded Rs.1 lakh as in December 2000. Since the plaintiffs and the defendants 1 and 2 were unable to discharge the loan amount, they have requested the third defendant to purchase the suit properties. But at that time, the suit properties would fetch only Rs.65,580/- and hence, the third defendant asked the fi

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