APEX COURT DIGEST 2016 - 1

T.P.Act - Registered sale deed coupled with an agreement of re conveyance - for a transaction to constitute mortgage by conditional sale, it is necessary that the condition is embodied in the document that purports to effect the sale. But not when  Sale Deed dated 14.06.1972 and  Agreement of re conveyance dated 14.06.1972 having been executed on the same day and both ought to be read together and when the Sale Deed was executed only as a security for the loan and it was never the intention of the 1st respondent-plaintiff to convey the suit property. Since 1st respondent- plaintiff has paid back the loan amount i.e. Rs.6,700/- as is evident from the subsequent Agreement dated 05.06.1974, the Courts below rightly recorded the concurrent findings of fact that  Sale Deed is not binding on the 1st respondent-plaintiff. Once repayment was made, the 1st respondent-plaintiff was entitled to the declaration as prayed for no need to ask for  cancellation of sale deed.

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