Mortgage by conditional sale recognised where sale terms, repayment rights and default clauses showed a debtor-creditor relationship.

A document expressed as a sale was construed as a mortgage by conditional sale under section 58(c) of the Transfer of Property Act because its terms, read as a whole, showed that title would remain with or revert to the executants on repayment within the stipulated period, while the transferee would obtain absolute title only on default. The repayment clause, retention of possession, and default consequences pointed to a debtor-creditor relationship rather than an outright sale. Surrounding circumstances, including discharge of an earlier mortgage and borrowing for related land proceedings, reinforced that construction. The transaction was therefore treated as a mortgage by conditional sale, not a sale with a mere repurchase covenant.

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Issues: Whether the document dated 15 April 1930 was a mortgage by conditional sale within section 58(c) of the Transfer of Property Act or an out-and-out sale with a condition of repurchase.

Analysis: The document was couched in the form of a sale, but its terms were ambiguous and had to be read as a whole. The clauses dealing with repayment, retention of possession, and the effect of non-payment were construed as indicating that title was to remain or revert to the executants on repayment within the stipulated period, while the transferee's title was to become absolute only on default. The surrounding circumstances also supported a continuing debtor-creditor relationship, including the fact that most of the consideration went in satisfaction of an earlier mortgage and that money was borrowed for ongoing commutation proceedings relating to the same land. On a fair construction, the transaction fell within the statutory form of a mortgage by conditional sale.

Conclusion: The document was a mortgage by conditional sale and not an outright sale with a covenant for repurchase.

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