M/S. Hasthimal & Sons & Others vs P. Tej Raj Sharma

The Supreme Court held that the right of pre-emption granted to the mortgagee in the agreement dated 21.9.1981 operates as a clog on the mortgagor's right to redeem the mortgage, aligning with the principle established in Lewis vs. Frank Love, Ltd. The Court ruled that the respondent did not automatically gain possession upon redemption of the mortgage, as the mortgagee's prior tenancy continued, reverting to a lease upon redemption. The appeal was dismissed, affirming the High Court's decision to decree the suit under Order 12 Rule 6 CPC.