The Supreme Court has once again underlined that the right to redeem a usufructuary mortgage does not vanish merely with the passage of time. Dismissing a long-pending civil appeal, the Court upheld a Punjab and Haryana High Court decision that restored an order allowing redemption of mortgaged agricultural land in Bathinda district.
The judgment brings closure to a legal battle that began nearly five decades ago, revolving around limitation, mortgage law, and the enduring right of redemption.
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Background of the Case
The dispute relates to 114 kanals and 4 marlas of agricultural land situated in Village Tamkot, Tehsil Mansa, District Bathinda. The land had been mortgaged by the ancestors of the respondents, while the appellants were the mortgagees.
In 1975, the respondents approached the Collector under the Redemption of Mortgage Act, 1913, seeking redemption of the mortgaged land. The Collector allowed the application on 17 September 1975, permitting redemption.
This order was challenged by the mortgagees through Civil Suit No. 291 of 1975, arguing that the redemption claim was barred by limitation. The trial court agreed and, in September 1976, set aside the Collector’s order.
The respondents’ first appeal before the Additional District Judge, Bathinda, failed in December 1980. However, relief came two decades later when the Punjab and Haryana High Court allowed a Regular Second Appeal in 2001, holding that the right to redeem had not become time-barred.
That decision was briefly set aside by the Supreme Court in 2009 on procedural grounds, as the High Court had not framed substantial questions of law. After re-hearing the matter, the High Court again ruled in favour of the mortgagors in January 2010, restoring the Collector’s 1975 order.
This prompted the mortgagees to return to the Supreme Court.
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Supreme Court’s Observations
A Bench of Justice B.V. Nagarathna and Justice R. Mahadevan examined the legal position governing usufructuary mortgages. The Court noted that the High Court had relied on earlier precedent suggesting that limitation does not begin merely from the date of mortgage.
During arguments, reliance was placed on a later three-judge Bench decision which clarified that in usufructuary mortgages, limitation starts only when the mortgage money is paid or adjusted from usufruct, or deposited as per law.
“The mere expiry of the prescribed period does not extinguish the mortgagor’s right of redemption,” the Bench observed, reiterating that ownership does not shift automatically to the mortgagee with time.
The Court found merit in the respondents’ submission that applying this settled principle would necessarily lead to dismissal of the mortgagees’ suit.
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Final Decision
Accepting the legal position, the Supreme Court dismissed the appeal filed by the mortgagees. The Court affirmed the Punjab and Haryana High Court’s judgment, upheld the restoration of the Collector’s 1975 order allowing redemption, and dismissed the civil suit filed by the appellants.
The Bench also vacated the interim stay and directed parties to bear their own costs.
Case Title: Dalip Singh (D) Through LRs vs Sawan Singh (D) Through LRs
Case No.: Civil Appeal No. 3358 of 2010
Case Type: Civil Appeal (Property / Mortgage Dispute)
Decision Date: 12 November 2025
