K.J.NATHAN vs S. V. MARUTY REDDY AND OTHERS

The Supreme Court held that a mortgage by deposit of title deeds under Section 58(f) of the Transfer of Property Act requires three elements: (1) a debt, (2) a deposit of title deeds, and (3) an intention for the deeds to serve as security for the debt. The Court clarified that the intention must be inferred from the circumstances and evidence, as there is no legal presumption that mere deposit constitutes a mortgage. The Court ultimately found that the trial court's conclusion regarding the absence of intention to create a mortgage was incorrect, thus allowing the appeal.