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2025 Supreme(Online)(Ker) 33560

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Judge, J
Vimala Bai – Appellant
Versus
Ayyappan Sivanandan – Respondent
OS No.216/2004 | OS No.441/2004 | AS Nos.135 of 2007 | AS No.136 of 2007 | AS No.134 of 2007 | R.S.A Nos.974, 975 and 1241 of 2011



Advocates:
For the Appellants/Petitioners: Sri.G.S.Raghunath
For the Respondents: Sri.B.Krishna Mani

The right of redemption in a mortgage remains until a court decree extinguishes it, irrespective of any assignment not meeting statutory acknowledgment requirements.

Headnote:(A) Transfer of Property Act, 1882 - Sections 58(d), 60, and 123 - Limitation Act, 1963 - Article 61 - Appeals procedural and substantive issues regarding redemption of mortgage and legality of gift deed - Counter-claim regarding partition found not maintainable as it did not pertain to a cause of action occurring before or after the filing of the suit. (Paras 8-10, 12, 24, 29-35)

(B) Mortgage - The right of redemption, a statutory right, is not extinguished by merely assigning the mortgage without a clear acknowledgment of the mortgage in the assignment deed. (Paras 20-22)

(C) Gift Deed - Non-compliance with attestation requirements renders the deed void, however evidence should be scrutinized to determine sincerity of attestation of the witness. (Paras 24-26)

(D) Counter-Claim - A counter-claim must relate to a cause of action pertinent to the original case; failure to establish this renders it impermissible. (Paras 29-32)

Facts of the case:
The plaintiffs filed suit OS No.441 of 2004 for mortgage redemption, while the defendant counterclaimed for partition concerning a property subject to a previous gift deed. The courts originally found the gift deed void and ruled the mortgage redemption suit time-barred.

Findings of Court:
The courts below misapprehended the application of the Limitation Act and the Transfer of Property Act, leading to misdetermined outcomes regarding the gift and mortgage assignments.

Issues: (1) Validity and acknowledgment of the gift deed; (2) Delay and recognition of statutory rights in mortgage redemption; (3) Maintainability of counter-claims.

Ratio Decidendi: The court highlighted that without statute-compliant acknowledgment, mortgage rights remain intact. A valid gift requires attestation, and counterclaims must connect with the original suit's cause of action.

Result: Appeals allowed, judgments overturning previous rulings, and orders made in favor of plaintiffs for mortgage redemption and partition.

Table of Content
1. overview of the cases and parties involved. (Para 1 , 2)
2. court's analysis on mortgage and limitation. (Para 3 , 8 , 14 , 19)
3. arguments regarding counter claims and extinguishments. (Para 6 , 7)
4. essence of usufructuary mortgage and its redemption. (Para 11 , 12)
5. final decisions and reasoning of the court. (Para 23 , 34)

JUDGMENT

These appeals arise out of the common judgment and decree passed by the II Addl. Munsiff’s Court, Neyyattinkara, in OS Nos.216/2004 and 441/2004 dated 13.10.2006 and also a counterclaim for partition. OS No.216/2004 is a suit for injunction, whereas OS No.441/2004 is a suit for redemption of mortgage and partition.

2. The brief facts necessary for the disposal of the appeals are as follows:-

OS No.441 of 2004 is instituted by Vimala Bai and Ayyappan Sivanandan seeking for redemption of mortgage. OS No.216 of 2004 is instituted by one Ani, the sibling of Vimala Bai, seeking for a decree of injunction restraining his sister from trespassing into the plaint schedule property. For consideration of the issues raised in these appeals, it will sufÏce the cause if the facts leading to the filing of OS No.441 of 2004 are stated. The plaint A schedule property belonged to the 2nd plaintiff’s father, late Sadasivan, as per document No.425 of 1961. Late Sadasivan mortgaged the property in favour of one Krishna Pilla Raghavan Pillai by a registered mortgage deed No.2918/69 dated 17.09.1969. It is contended that although the property was under mortgage, Raghavan Pillai did not get possession and Sadasivan continued possession of the property. Later, when the 2nd plaintiff in OS No.441 of 2004 was married off, her father Sadasivan executed a gift deed bearing No.1169/76 dated 07.04.1976 wherein 10 cents of land described as B schedule out of the 25 cents comprising in plaint A schedule property was gifted to her. After the said transfer, Sadasivan had kept the balance 15 cents in his possession described as plaint C schedule. While so, the mortgage in the year 1969 was redeemed for and on behalf of the 1st defendant by Sadasivan by executing a registered deed No.2056 dated 30.07.1986. Going by the said deed, the 1st defendant was entitled to hold the property under mortgage and was obliged to get the release deed executed from the erstwhile mortgagors as and when the mortgage is redeemed by them. According to the plaintiffs, the execution of the deed on 30.07.1986 is a valid acknowledgment of the mortgage by Raghavan Pillai in favour of Sadasivan, and therefore, it constitutes a valid acknowledgment of the mortgage and therefore the suit for redemption of mortgage is maintainable. Thus, it is prayed that the plaintiffs be permitted to redeem the mortgage and the plaint C schedule be partitioned giving 1/3rd share to the plainti defendants in OS No.441 of 2004 entered appearance and contested the suit, by denying the execution of the gift deed stating that it is a void document. It was further contended that the suit for redemption of mortgage was time barred. Along with the suit, a counter claim was raised by the defendants seeking for a partition of the property covered by the gift deed and included as counter claim schedule property. The aforesaid suit was tried along with OS No.216 of 2004 wherein, the 1st defendant had sought for a decree of injunction restraining the defendants/plaintiffs in OS No.441 of 2004 from interfering with the peaceful possession of the plaintiff over the property. Both the suits were tried together. Exts.A1 to A9 were marked on behalf of the plaintiffs in OS No.441 of 2004. Exts.B1 to B5 were marked on behalf of the defendants. PW1 to PW3 were examined on behalf of the plaintiffs. DW1 and DW2 were examined on behalf of the defendants. On the basis of the pleadings and documentary evidence, the trial court framed separate issues in OS Nos.216 of 2004 and 441 of 2004. The issues framed in OS No.216 of 2004 are as follows:-

“1. Whether plaintiff has got possession over

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