SangsLegal News A transaction cannot be considered as a 'Mortgage by Conditional Sale' if the conditions for reconveyance aren't stated within the same deed: Supreme Court

The supreme court ruled that under the TP Act, a transaction cannot be considered as a 'Mortgage by Conditional Sale' if the conditions for reconveyance aren't explicitly stated within the same deed.The apex court made this statement in the context of a case involving two documents executed on the same day-a sale deed and a reconveyance/buy back agreement. The highest court emphasized that the additional clause to Section 58(c) of the Act was set up to construct a presumption that a cannot be viewed as a mortgage unless the stipulation for the reconveyance is found in the document designed to implement the sale.