MARUTHAI GOUNDAN Vs. DASAPPA GOUNDAN

JUDGEMENT

(1.) The question in this case is whether a sale-deed and an agreement executed on the same day constitute a mortgage by conditional sale. The sale-deed is not only an absolute conveyance of the proparty but contains recitals which show an intention to extinguish a prior mortgage between the same parties and to discharge the vendors obligations to other parties and a statement that the sale price is the " proper current market value" of the land.

(2.) These provisions are inconsistent with an intention that the transfer was for the purpose of srcuring the payment of money advanced by way of loan (Transfer of Property Act, 1882, Section 58(a) ).

(3.) The agreement for reconveyance states that the appellants father had purchased the property for Rs. 1,500 and provides that " if you or your Oollittar or your heirs should pay the afore-said amount at the beginning of the cultivation season of any year within four years from this day, I shall re-convey the lands to you by means of a sale-deed in accordance with that executed in my favour."