SMT.LAKSHMAMMA Vs. PHOENIX ARC PVT. LTD.

JUDGEMENT

(1.) Heard the learned counsel for the petitioners and the learned Senior Counsel Sri.P.S.Rajagopal appearing on behalf of caveator/respondent No.1.

(2.) Brief facts of the case are that petitioner No.1 is a widow and a senior citizen, and petitioner No.2 is the daughter-in law of petitioner No.1. The petitioner No.1 is a guarantor to the loan advanced to respondent No.2. The respondent No.3 is the son-in law of the petitioner No.1 and has defaulted in repayment of loan. The respondent No.4 is the daughter of petitioner No.1 and wife of respondent No.3. The respondent No.3 and 4 who are the partners of respondent No.2 have defaulted in repayment of loan. The loan was secured by the properties of the respondent No.3 and 4 while the property of petitioner No.1 was given as a security which is a residential property. That the value of the residential property, given as security by petitioner No.1 covers only a small portion of the loan.

(3.) That respondent No.1 initiated action under the Act and took physical possession of the property although it covers only 10% of the outstanding loan amount. The petitioner No.1 being a senior citizen is now living at the mercy of her relatives. The respondent No.1 had proceeded to sell the property of the petitioner No.1, who is a guarantor and mother in law of the respondent No.3, who is the borrower.