Bhavsingh (Dead) By Lrs vs Keshar Singh And Ors

The Supreme Court held that the sale transaction in question was a prohibited transaction under Section 2(0) of the Madhya Pradesh Samaj Ke Kamjor Vargon Ke Krishi-Bhumi Dharakon Ka Udhar Dene Walon Ke Bhumi Hadapane Sambandhi Kuchakron Se Paritran Tatha Mukti Adhiniyam, 1976 (M.P. Act No. 3 of 1977), and thus null and void under Section 7(2) of the Act. The Court found that the appellant's claim of the transaction being a mortgage was valid, as the agreement stipulated that possession would be restored upon repayment of the loan. Consequently, the Court set aside the High Court's order and upheld the SDO's decision to restore possession of the land to the appellant.