Civil Appeal Nos.5576-5577 of 2017, (Arising Out of SLP (C) Nos.9582-9583/2013). Case: Sri Srinivasaiah Vs H.R. Channabasappa (since dead) by his LRs and Ors.. Supreme Court (India)
| Case Number | Civil Appeal Nos.5576-5577 of 2017, (Arising Out of SLP (C) Nos.9582-9583/2013) |
| Judges | R.K. Agrawal and Abhay Manohar Sapre, JJ. |
| Issue | Transfer of Property Act, 1882 - Section 58(c); Indian Contract Act - Section 65; Limitation Act - Article 61(a); Constitution of India - Article 142 |
| Judgement Date | April 25, 2017 |
| Court | Supreme Court (India) |
Judgment:
Abhay Manohar Sapre, J.
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Leave granted.
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These appeals are filed by defendant No.2 against the order dated 18.04.2012 passed by the High Court of Karnataka at Bangalore in R.P. No. 387 of 2011 and the final judgment and order dated 25.07.2011 in R.S.A. No.1253 of 2005 by which the High Court allowed the appeal filed by the respondents herein and set aside the judgment and decree dated 18.02.2005 passed by the Additional Civil Judge (Sr.Division), Ramnagaram in R.A. No.35 of 2000 and restored the judgment and decree dated 30.06.2000 passed by the Civil Judge (Jr.Division) Kanakapura in O.S. No.152 of 1987.
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We herein set out the facts, in brief, to appreciate the issues involved in these appeals.
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The appellant is defendant No.2 whereas respondent Nos. 1 to 5 are the legal representatives of original plaintiff and respondent Nos. 6 to 11 are the legal representatives of original defendant No. 1 in the civil suit out of which these appeals arise.
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The original plaintiff - M.N. Channabasappa was the owner of the suit land (described in detail in schedule to the plaint). He fell in need of money in 1969. He, therefore, approached the original defendant No.1 - B.M. Narayana Shetty and requested him to give some money to overcome the financial crisis faced by him during that time. Defendant No.1 agreed and accordingly gave Rs.1500/- to the plaintiff by way of loan. In order to secure the repayment, the plaintiff on request made by defendant No.1 executed a document on 28.07.1969 (Ex-P-1) in favour of defendant No.1 and got the same registered with the sub-Registrar, Kanakpura. Defendant No.1 was also placed in possession of the suit property pursuant to the document.
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On 30.06.1987, the plaintiff sent a legal notice to defendant No.1 and offered to repay Rs.1500/- to him with a further request to redeem the suit land in his favour in terms of the conditions of Ex. P-1. The plaintiff contended that the Ex.P-1 was essentially a mortgage deed executed by him in favour of defendant No.1 by way of security for repayment of the loan given to him by defendant No.1. The plaintiff contended that in terms of the conditions of Ex.P-1, he delivered possession of the suit land to defendant No.1 for a period of 5 years to enable defendant No.1 to reap the fruits of the suit land and on repaying Rs.1500/- within five years, restore the possession of the suit land by redeeming the mortgage.
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Defendant No.1 sent a reply to the notice on 13.08.1987. He denied the plaintiff's offer and contended therein that the document dated 28.07.1969 (Ex.P-1) is not a "mortgage deed" as described by the plaintiff in the notice but it is in substance a "sale deed" out and out in relation to the suit land executed by the plaintiff in his favour for Rs.1500/- pursuant to which defendant No.1 was also placed in possession of the suit land as owner. It was contended that defendant No.1, in the meantime, on 25.09.1986 sold the suit land to the appellant herein (defendant No.2) by executing the deed of sale for consideration.
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This gave rise to filing of the Civil Suit by the plaintiff on 19.09.1987 against the original defendant No.1 and the appellant herein who, as mentioned above, is the purchaser of the suit land. The suit was filed in the Court of Civil Judge (Jr. Division) at Kanakapura for claiming reliefs namely- (1) redemption of the mortgage of the suit land in plaintiff's favour (2) for a declaration that the sale made by defendant No.1 of the suit land in favour of defendant No. 2 vide sale deed dated 25.09.1986 is bad in law and not binding on the plaintiff and (3) for recovery of possession of the suit land from the defendants.
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It was alleged that the Ex.P-1 is a mortgage deed pursuant to which plaintiff had delivered the possession of the suit land to defendant No.1 for a period of 5 years on taking loan of Rs.1500/- from defendant No.1. It was alleged that the mortgage was created by the plaintiff of his suit land in favour of defendant No.1 only by way of security to secure payment of loan amount and in terms of condition of the deed, defendant No.1 was to enjoy the fruits of suit land for a period of 5 years and within the said period, the plaintiff was to return Rs.1500/- to defendant No.1 and, in turn, defendant No.1 was to redeem the mortgage to the plaintiff. It was alleged that the plaintiff offered Rs.1500/- to defendant No.1 but he declined and on the other hand asserted his right of ownership over the suit land and hence need to file the civil suit arose and seek aforementioned reliefs against the defendants in relation to the suit land.
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Defendant No.1 filed the written statement and denied the plaintiff's claim. He reiterated his stand taken by him in reply to legal notice. It was alleged that document in question (Ex.P-1) is not a mortgage deed but in substance a sale deed on the strength of which he has become the exclusive owner. It was alleged that since the plaintiff failed to come forward to pay the loan amount to defendant No.1 on the expiry of 5 years, he lost the right to get the suit land restored in his name. It was alleged that defendant No.1 has already sold the suit land to defendant No.2 on 25.09.1986 by sale deed for consideration. A plea of suit to be barred by limitation was also raised.
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The Trial Court framed issues on the basis of pleadings. The parties adduced evidence. During the pendency of the suit, both plaintiff and defendant No.1 died and, therefore, their respective legal representatives were brought on record to continue the lis.
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The Trial Court by its judgment/decree dated 30.06.2000 decreed the plaintiff's suit. It was held that the document dated 28.07.1969(Ex.P-1) is a mortgage by conditional sale and not a sale deed. It was held that the plaintiff is entitled to claim redemption of the mortgage by paying the mortgage money to defendant No.1 and seek restoration...
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