Tulsi & Ors vs Chandrika Prasad. & Ors on 24 August, 2006
In Tulsi v. Chandrika Prasad, reported in (2007) 7MLJ 832, the Hon'ble Supreme Court has held that as per Section 58 (c) of Transfer of Property Act, 1882, a transaction, if evidenced by one document may be held to be a mortgage with conditional sale. The conditions precedent for arriving at conclusion that the transaction is a mortgage with conditional sale or, there must be an ostensible sale. Document must contain a condition that on default of payment of mortgage amount on a stipulated date, the sale shall become absolute or that, on such payment being made, the sale shall become void or on such payment being made the buyer shall transfer the property to the seller. Referring Section 92 of the Indian Evidence Act, it was held by the Hon'ble Apex Court that the said section mainly forbids proving of the contents of a writing otherwise, than by writing itself and merely lays down the 'best evidence rule'. It, however, does not prohibit the parties to adduce evidence, in a case, the deed is capable of being construed differently to show how they understood the same.