Leela Agarwal vs Sarkar

The Supreme Court upheld the decision of the Chhattisgarh High Court affirming the Trial Court's decree in favor of the plaintiff, allowing redemption of the mortgage under Section 58(b) of the Transfer of Property Act, 1882. The Court ruled that the condition in the mortgage deed converting it into a sale upon default constituted a clog on the equity of redemption, thus invalidating the defendant's claim of ownership. The appeal was dismissed, affirming the plaintiff's right to redeem the mortgage by paying ₹1,20,000.