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PANDIT CHUNCHUN JHA versus SHEIKH EBADAT ALI AND ANOTHER

Citation: [1955] 1 S.C.R. 174 · Decided: 14-04-1954 · Supreme Court of India · Bench: BIJAN KUMAR MUKHERJEA, VIVIAN BOSE, GHULAM HASAN, T.L. VENKATARAMA AIYYAR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

1954 
. .Af. K. Gopalan 
~!Id 
Another 
v. 
The State of 
Madhya Pradesh 
Jagannadhadas J. 
1954 
April 14. 
1'74 
[l?55] 
to issue the necessary. notifiqtjon .. and 
h~ve ... dle case 
transferred. In view of that statemep.t, it is unneces-
sary to. pronounce pn the obje~tion sg raised. . 
. 
In the result, all the. points .raised on behalf of the 
petitioners fail, and. this petition must be dismissed. 
It is desirable to observe that the questions above 
dealt with appear to have been raised before the High 
Court at previous stages ·by 'means of appliqtions urider 
article 226 
and decided . against. . No appeals. to this 
Court have been taken 
against the orders therein. 
Nothing that we have said is . intended to be a pro-
nouncement as to ·the correctness or otherwise of those 
orders, 
J,10r to encourage the practice ·of direct approach 
to this Court (except for good reasons) in matters which 
have been taken \o the High Court and fou.nd. against, 
without obtaining leave· to appeal ther.efrom. · 
Petition dismissed. 
PANDIT CHUNCHUN JHA 
tJ. 
SHEIKH EBADAT ALI AND ANOTHER. 
[MuKHERJEA, VIV!AN BosE, GHULAM I{AsAN and 
.VENKATARAMA AvvAR JJ.J 
Transfer of Property Act (Act IV of 1882)-Section 58(c) as 
·""' . 
' -
amended by Act XX of .J929-,Document-Whether a mortgage or 
-
sale outright-Principles. for determining whether the 
document is 
one or the other. 
· 
' . 
· 
The.re is 1?-C? hard and fast" rule for de~ermining )Vhether a given 
transaction is a mortgage by coh_ditional sale Or sale outright with 
a con_dition for- repUrchase. 
· 
· 
( 
:Each case must be dCcided On its 
own facts. 
The numerous 
decisions of the High Courts on the point are of no help because 
two documents are seldom expressed in identical -terms. 
The intention of the parties is the determining. factor but the 
intention must be _gathered from the document itself which has to 
be construed to find out the legal effect of the word~ used by the 
parties. 
If the . words are express and clear, effe~t must be given to 
them and any extraneous enquiry into what was thought or 
in-
te.nded is ruled <.>ut. 
If ho¥,rever there is ambiguity. in the language k 
employed- then it is Permissible to look to the surrouflding circum-
stances to determine what was inten·ded. 
.. 
-"' 
-
j 
·. 
.s~C.R. 
'SUPREME COURT.• REPORTS 
f75 
. In view of the provisions of the• amended section 58( c) .of the 
Transfe{ of. Property .Ac_t, if' the sale _and agreemc::nq to repmchase 
are .. embodied in separate, doc.um,ents, then ·_the ,tr~nsa\tion cannot 
be a mortgage whether_· ilie . docijments 
are. cont~inpor~neously 
executed or not. But the niete fact that there is ·ohly one docu-
ment · does not necessarilv' mean that ·it' must ·be ·a 'mortage and 
cannot be a sale. If, the ·condition of repurchase in:mbodied in . the 
document that effects or purports · to effect the sale,.. then it . is a 
matter for construction which was ,meant. 
. 
. 
Balkishen Das v. Legge .(27 I.A. 58), . Alderson y.: White. ( 44 
E.R. <)42 at· 928), Bhagwan. Sahai v. Bflagwan Din (17, I.A. 98 at 
102), and/handa Singh v. Wahid-ud-din (43 I.A. 284 a·t 293) re-
ferred to. 
· · 
' 
· 
· 
· 
CIVIL 
APPELLATE 
No. 98 of 1953. 
., 
JuRISDICTION : Civil 
Appeal 
Appeal by Special Leave . from the .. Judgmen,~ and 
.Decree dated the 27th 
day of 
January, 1949, ,of the 
.High Court of Judicature at 
Patna in Appeal .. from 
Appellate Decree -No •. 690 of. 1947 against the Pecree 
dated . the 13th January, 1947, of the Court of. the 
District Judge, Bhagalpur, in Title Appeal No . .161 .of 
1946 arising out of the 
Judgment .and .Decree 
dated 
the 25th July, 1946, of the Court of· the lSt .·Additional 
Subordinate Judge, · Bhagalpur, in Title Suit' No. 80 
of 1945; · 
· 
· 
· 
N. C. Chatterjee, (A. N. Sinha and :S,, P. Verma, 
with him) for the appellant. 
. Murtaza Faz/ Ali and Rajinder Narain, for respond-
ent No. 1. 
1954. 
April 14. The Judgment· of the Court was 
delivered by 
BosE J.-This is a plaintiff's appeal in a suit for 
re-
demption of what the plaintiff calls a mortgage . dated 
15th April, 1930. The •only question for determination 
is whether this is a mortgage by conditional sale · or a 
sale out and out with. a condition' of repurchase; 
If the 
former the plaintiff succeeds. · If the latter he is· out of 
Court. 
· 
The property • covered by· the disputed deed belonged 
to 
one 
Bijai Tanti who died leaving a widow Mst. 
Phaguni and two sons Siban Tanfr and Chand

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