SHAH MATHURADAS MAGANLAL & CO. vs NAGAPPA SHANKARAPPA MALAGE & ORS.

The Supreme Court held that the doctrine of merger does not apply when a mortgagee's rights and the equity of redemption are held by the same person in different capacities. It clarified that for a merger to occur, a lesser estate must merge with a higher estate at the same time and in the same right. The Court also established that surrender under the Transfer of Property Act can be implied through relinquishment of possession, and in this case, the relationship between the parties was determined to be that of mortgagor and mortgagee, not tenant and landlord, thus affirming the High Court's decision for redemption of the mortgage under Section 62 of the Transfer of Property Act.