Neutral Citation: 2024 INSC 640 [Download Judgment]
Cause Title: A. B. Govardhan v. P. Ragothaman
Case Number: Civil Appeal Nos. 9975-9976 of 2024
Judgment Date: August 29, 2024
Quorum/Bench: Justice Hima Kohli and Justice Ahsanuddin Amanullah
Para 29 "We are of the opinion that the Single Judge has appreciated the law correctly as far as the Agreement is concerned to hold it to be a mortgage in view of Section 58(f) of the Act. We have read and re-read the Agreement. We have also minutely considered the exposition of law made in Narvir Singh (supra). We are of the opinion that the Agreement only records what has happened and does not create/extinguish rights/liabilities. It would, therefore, be covered by para 14.3 of Narvir Singh (supra), as highlighted hereinbefore."
Para 30"Indubitably, the respondent pleaded threat and coercion whilst executing/signing the Agreement, yet having accepted that he did sign the same in his own hand, the burden was on him to prove such threat/coercion. Looked at from any angle, the First Impugned Order suffers from legal errors, and cannot withstand the scrutiny of law. At the cost of repetition, it is to be stated that the Single Judge has rightly considered the factual prism and focused on the core issue without reference to facts which were irrelevant and not germane to the issue(s) before her."
Submission of Appellant: The appellant argued that the Agreement created a mortgage by deposit of title deeds, and the Division Bench erred in not recognizing this and in holding that there was no stipulation to pay interest.
Submission of Respondent: The respondent contended that the Agreement did not create a mortgage, and was merely an agreement to sell the property. He also claimed that the Agreement was executed under coercion and threat.
Decision of the Judgment: The Supreme Court set aside both impugned orders of the Division Bench, restored the Single Judge's order with a modification of interest rate from 36% to 12% per annum, and held that the Agreement constituted a valid mortgage by deposit of title deeds under Section 58(f) of the Transfer of Property Act.
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