P. L. BAPUSWAMI vs N. PATTAY GOUNDER

The Supreme Court held that the transaction in question, documented as Ex. B-1, constituted a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act, 1882, rather than a sale with a condition for repurchase. The Court emphasized that the intention of the parties, as inferred from the deed's language and surrounding circumstances, is crucial in determining the nature of the transaction. The Court found that the relationship of debtor and creditor existed, as the consideration for reconveyance was the same as the original amount, and the property was not transferred outright. The High Court's reversal of the trial court's decision was set aside, affirming the trial court's ruling in favor of the plaintiff.