Separate reconveyance agreement cannot convert a sale deed into a mortgage when the condition is not in the same document.

A sale deed accompanied by a separate agreement to reconvey could not be treated as a mortgage under the proviso to Section 58(c) of the Transfer of Property Act. The proviso was read as excluding any inquiry into whether such a transaction, when the stipulation for retransfer is not contained in the same document, can be characterised as a mortgage. The court rejected the argument that the word "deemed" permits treatment of the arrangement as any mortgage other than a mortgage by conditional sale. As the condition was in a separate document, the transaction was not a mortgage and redemption was not available.

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Issues: Whether a transaction consisting of a sale deed and a separate agreement to reconvey can be treated as a mortgage, having regard to the proviso to Section 58(c) of the Transfer of Property Act.

Analysis: The proviso to Section 58(c) was read as excluding any inquiry that a sale with a stipulation for retransfer, when the stipulation is not embodied in the same document, should be treated as a mortgage. The Court rejected the contention that the proviso permits the transaction to be treated as some mortgage other than a mortgage by conditional sale, and also rejected the argument that the word "deemed" leaves room for treating a sale and separate reconveyance as a mortgage. It held that if such a transaction is really a mortgage, it can only be a mortgage by conditional sale, and the proviso prevents that inference where the condition is contained in a separate document.

Conclusion: The transaction could not be treated as a mortgage, and the claim for redemption failed.

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