IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
G. S. Ahluwalia, J.
Hajrat Singh And Others – Appellants
Versus
Parvat Singh And Others – Respondents
Second Appeal No. 317 of 2016
Decided On : 01-08-2025
| Table of Content |
|---|
| 1. background of property ownership dispute. (Para 1 , 2 , 3 , 4) |
| 2. appellants' arguments regarding sale nature. (Para 6) |
| 3. evidence of reconveyance and agreements. (Para 10 , 11 , 12) |
| 4. interpretation of conditions in property transactions. (Para 13 , 14 , 15 , 19) |
| 5. legal distinctions between mortgage types. (Para 20 , 21) |
| 6. findings on payment and possession. (Para 22 , 23 , 24 , 26) |
| 7. final dismissal of appeal. (Para 27 , 28) |
ORDER :
G. S. Ahluwalia, J.
This second appeal, under section 100 of CPC, has been filed against the judgement and decree dated 6/5/2016 passed by First Additional District Judge, Mungavali, District Ashoknagar in Civil Appeal No. 67A of 2012, as well as, judgement and decree dated 5/1/2011 passed by Civil Judge Class 1, Mungavali in Civil Suit No. 3A of 2007.
2. Appellants are defendants who have lost their case from both the Courts below.
3. Facts necessary for disposal of present appeal, in short, are that respondent filed a suit for declaration of title and permanent injunction pleading inter alia that he is the owner and in possession of area 1.045 hectares out of 1.494 hectares of Survey No. 112 situated in village Atreji, Tahsil Mungavali, District Ashoknagar. On the southern side of the land, land of defendant No. 1 is situated whereas on the eastern side, land of Ram Prasad is situated and on the western side remaining land of survey No. 112 is there and on the northern side, land of defendants is situated. It was claimed that plaintiff is the sole owner and in possession of the property in dispute, as it was purchased by plaintiff from the father of defendants namely Feran Singh by registered sale deed dated 30/5/1998 for a consideration amount of Rs.1,05,000/- and since then plaintiff is in possession of the property in dispute and even today he is in possession thereof. On 1/9/2007, at about 10:00 a.m., plaintiff was ploughing his field with the help of a Tractor. At that time defendant Nos. 1, 2, 4 and 6 and 2-3 other persons came at the disputed property and tried to stop the plaintiff from cultivating the land. When plaintiff replied that he has purchased the property from their father and why they are picking quarrel then it was challenged by defendant Nos. 1, 2, 4 and 6 by claiming that the land belongs to them and therefore they would cultivate the land and tried to forcibly dispossess the plaintiff and also started denying the right and title of plaintiff. However the plaintiff did not allow defendant Nos. 1,2,4 and 6 to take possession and with great difficulty he persuaded them to go back. However while going back defendants extended a threat that they would take possession and accordingly suit for declaration of title and permanent injunction was filed.
4. Defendants filed their written statement and denied the right and title of plaintiff. It was claimed that defendant Nos. 1-6 are in cultivating possession of the property in dispute and defendants are owner of survey No. 112 area 1.045 hectares. It was claimed that Feran Singh was not the father of all the defendants but he was the father of defendant Nos. 1-3 only whereas he was grandfather of defendant Nos. 4-6. It was denied that Feran Singh had executed a sale deed in respect of Survey No. 112 area 1.045 hectares, but it was claimed that he had mortgaged the property. On the date of execution of sale deed one receipt was executed by plaintiff in presence of attesting witnesses Raghuvir Singh and Hazrat Singh by agreeing that in case if Feran Singh returns the entire amount within a period of 2 years then the deed of reconveyance would be executed. It was claimed that Feran Singh continued to be in possession of the property in dispute and after his death defendants are in possession. The incident as alleged by plaintiff on 1/9/2007 was denied. In special plea it was stated that on the basis of sale deed plaintiff has got his name mutated in the revenue records but it was done without information to Feran Singh. A

The court affirmed that a sale deed is valid unless proven to be a mortgage by conditional sale under Section 58(c), emphasizing the necessity of matching documentary intentions.
A mortgage by conditional sale cannot have its redemption rights restricted by any clause, which is deemed invalid under Section 60 of the Transfer of Property Act.
A deed titled as a mortgage by conditional sale establishes a lender-borrower relationship, and any clause restricting the right of redemption is void under Section 60 of the Transfer of Property Act....
A sale deed must explicitly state conditions for re-transfer to qualify as a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act.
The main legal point established is that the nature of a sale deed, the right to repurchase, and the applicable limitation for the suit are crucial factors in determining the outcome of property disp....
Redemption of mortgaged property – In absence of any positive evidence of any improvement and cost incurred, defendants are not entitled to recover anything more than mortgage amount.
Redemption of mortgage – No transaction shall be deemed to be a mortgage, unless condition is embodied in document which effects or purports to effect sale.
A transaction cannot be deemed a mortgage by conditional sale unless the condition for retransfer is embodied in the same document that effects the sale, as per Section 58(C) of the Transfer of Prope....
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