N SUBBA REDDY ADOPTED Vs. A RANGAYYA

JUDGEMENT

(1.) A short question arose in this appeal viz. whether an agreement of reconveyance hit by Section 58 (c) of the Transfer of Property Act can be used as an agreement of sale under Sec. 53-A of the Transfer of Property Act.

(2.) The defendant is the appellant in the appeal. The suit is filed for a declaration of the plaintiff's title and for delivery of possession. The Plaintiff's case is that he purchased the property from the defendant on 18-6-1965 but on the same day he executed a reconveyance agreement in favour of the defendant underteking to reconvey the scheduled mentioned property if the defendant pays Rs 800/- with interest at 12% pa. within three years from the date of the agreement The defendant failed to pay the amount and eommitted default but also refused to deliver possession and hence the suit.

(3.) The defendant resisted the suit on the ground that the sale deed and the agreement executed on the same day would constitute a mortgage by conditional sale and the plaintiff is not the owner of the property and that the property is worth more than Rs. 3,000/- and the conduct of [the parties in extending the time and also receiving the payments by the plaintiff would clearly disclose that the relationship between the parties is debtor and creditor and the delay in paying the amount and taking the registered reconveyance is due to the ordinance of the year 1972 which prohibited the alienation and consequently the suit is not maintainable and that the defendant is ready and willing to pay the entire amount of Rs. 800/- and as the plaintiff is not willing to register the reconveyance deed there is no default on the part of the defendant and the suit is liable to be dismissed.