Jafferji v Lukmanji (Civil Appeal No. 31 Of 1946)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Where a mortgage deed recites that the mortgagor received consideration but the recital is proved incorrect, parol evidence is admissible under section 92 of the Indian Evidence Act to rebut it. The initial onus lies on the mortgagor to prove the recital incorrect. Once established, the onus shifts back to the mortgagee to prove consideration passed by other means. The mortgagee's failure to give evidence or produce supporting documents meant he did not discharge this burden. Appeal dismissed.
Outcome
Mortgagee's claim for recovery under mortgage dismissed; mortgaged property not ordered for sale
Facts
The appellant mortgagee sued the respondent mortgagor for recovery of Sh. 2,000 under a mortgage deed executed on 4 June 1941, or in default for sale of the mortgaged property. The mortgage deed recited that the mortgagor acknowledged receiving Sh. 2,000 as consideration. The mortgagor admitted executing the mortgage but pleaded it was fictitious and he never received any money. At trial, the mortgagee's case shifted: he claimed he paid Sh. 2,000 to the firm of Adamji Jafferji and Co. to discharge the mortgagor's debt, and the mortgage secured this advance. The mortgagor denied owing the firm and disputed receiving any credit. The mortgagee did not give evidence himself and did not produce the firm's statement of account or books. The trial court found the recital incorrect and dismissed the suit for lack of proof of consideration.
Issues
- Whether parol evidence was admissible to rebut the recital in a mortgage deed acknowledging receipt of consideration.
- On which party the burden of proof lay to establish that consideration had passed for the mortgage.
- Whether the mortgagee discharged the burden of proving that consideration had in fact passed despite the incorrect recital in the mortgage deed.
Orders
- Appeal dismissed.
- Costs awarded to the respondent.
Rules and key headnotes
Legislation cited (2)
- Indian Evidence Act s.92
- Indian Evidence Act s.29
Cases cited (1)
- Makund v Bahori Lai (3 A. 824)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.