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Venkata Krishna Rao Vs. Venkatachalam and ors. - Court Judgment

LegalCrystal Citation
SubjectProperty
CourtChennai
Decided On
Reported in(1897)7MLJ299
AppellantVenkata Krishna Rao
RespondentVenkatachalam and ors.
Excerpt:
- 1. the mere circumstance that interest is stipulated for by the parties does not by itself indicate that a document which apparently is a sale was intended to be a mortgage. it might be important as indicating that there was a subsisting debt secured by the instrument. but the mention of interest is accounted for by the intention of the parties to arrange before-hand the terms on which the re-conveyances were to take place. the profits and the interest were to be set off against each other. except the mention of interest, there is no indication of an intention to create a mortgage security. the finding as to the value of the property as throwing light on the intention of the parties cannot be questioned here.2. we must dismiss the appeal with costs.
Judgment:

1. The mere circumstance that interest is stipulated for by the parties does not by itself indicate that a document which apparently is a sale was intended to be a mortgage. It might be important as indicating that there was a subsisting debt secured by the instrument. But the mention of interest is accounted for by the intention of the parties to arrange before-hand the terms on which the re-conveyances were to take place. The profits and the interest were to be set off against each other. Except the mention of interest, there is no indication of an intention to create a mortgage security. The finding as to the value of the property as throwing light on the intention of the parties cannot be questioned here.

2. We must dismiss the appeal with costs.


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