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Issues: (i) Whether the deed dated 27.10.1969 was a mortgage by conditional sale or an absolute sale with a condition of repurchase; (ii) Whether the appellant could support the decree in its favour by assailing the finding adverse to it without filing a separate appeal, in view of the appellate provisions of the Code of Civil Procedure.
Issue (i): Whether the deed dated 27.10.1969 was a mortgage by conditional sale or an absolute sale with a condition of repurchase.
Analysis: Under Section 58(c) of the Transfer of Property Act, 1882, the condition of repurchase must be embodied in the document. The document had to be read as a whole, and its character had to be gathered from its terms and surrounding features. The deed described an assignment of the vendor's half share, acknowledged receipt of consideration, delivered possession, permitted attornment to the landlord, and contained a fixed three-year stipulation for repurchase. No relationship of debtor and creditor was shown. The facts also indicated that the transferee was already entitled to the other half of the property, making the transaction consistent with a sale arrangement rather than a mortgage security.
Conclusion: The deed was held to be a sale with a condition of repurchase and not a mortgage by conditional sale.
Issue (ii): Whether the appellant could support the decree in its favour by assailing the finding adverse to it without filing a separate appeal, in view of the appellate provisions of the Code of Civil Procedure.
Analysis: A respondent whose decree is otherwise in its favour may support that decree by challenging an adverse finding. Order 41 Rule 22 of the Code of Civil Procedure, 1908 did not bar such a course in the circumstances, and Order 41 Rule 33 of the Code of Civil Procedure, 1908 enabled the appellate court to grant appropriate relief notwithstanding the absence of a separate appeal by the appellant against the adverse finding.
Conclusion: The appellant was entitled to support the decree by attacking the adverse finding, and the objection based on the absence of a separate appeal failed.
Final Conclusion: The impugned judgment was unsustainable and was set aside, with the result that the appellant succeeded on the substantive dispute over the deed's character.
Ratio Decidendi: The true nature of a document is determined from the document read as a whole and its embodied terms, and where a decree is otherwise in a party's favour, appellate powers may permit challenge to an adverse finding supporting that decree even without a separate appeal.