Ganga Dhar v. Shankar Lal, AIR 1958 SC 770
The Supreme Court of India in Ganga Dhar v. Shankar Lal (AIR 1958 SC 770) gave a landmark judgment on equity of redemption as stated in the Transfer of Property Act, 1882.
Background and Parties Involved The mortgage agreement was entered into between the appellant Purshottamdas and the respondent Dhanurpmal. An extraordinary article in this agreement restricted redemption to a specific period after 85 years from the date of mortgage.
Legal Dispute Basically, if the appellant or his legal heirs fail to redeem the said property within six months as was stipulated under such mortgage then, his right will be lost since it would amount to sale under such deed. This condition has been challenged by the appellant as a clog on the right to redemption.
Supreme Court’s Judgment It was held by Supreme Court that term for which mortgage could last, at 85 years, was enforceable by law and did not constitute a clog on its right of redemption. However, this clause for a six-month redemption period was considered an encumbrance on equity of redemption and hence voidness. Herein it is evident that there were restrictions but no extinction as to rights of redeeming or repurchasing such mortgaged land in question. So far as such concerned filing of premature suit during subsistence of 85-year period, plaintiff’s action had been dismissed.
Conclusion The case Ganga Dhar v. Shankar Lal stands out as one leading authority in Indian property law demonstrating how contractual freedoms within mortgages need balancing against protection for mortgagor’s equity of redemption. This case also highlights how fairness should be observed during any transactions concerning mortgages while emphasizing that no one can take away an individual’s right-to-redeem at whatever cost.
Summary:
This paper discusses Ganga Dhar v. Shankar Lal Supreme Court case with a focus on its implications on equity of redemption in mortgage law. Thus, the judgement affirmed the legality of mortgage duration and voided the limits on redemption making this right to be inviolable.
