PANDIT CHUNCHUN JHA vs SHEIKH EBADAT ALI AND ANOTHER.

The Supreme Court ruled that determining whether a transaction is a mortgage by conditional sale or an outright sale with a condition for repurchase is based on the intention of the parties, as per Section 58(c) of the Transfer of Property Act, 1882. The Court emphasized that if the sale and agreement to repurchase are in separate documents, it cannot be classified as a mortgage. However, if the condition of repurchase is included in the same document, it requires construction to ascertain the parties' intent. The judgment clarified that each case must be evaluated on its own facts, and extraneous inquiries are not permissible unless ambiguity exists in the language used.