T S ARUMUGHAN Vs. K MADHUSUDHANAN NAIR

JUDGEMENT

(1.) This appeal and Cross Objection are by the defendants and plaintiff respectively, in a suit for recovery of money.

(2.) M/S M.V.Subramania Iyer and Sons, Bankers and M/s Narsimha Financing Company belonged to one M.V.Subramanian. In I.P. Nos.3 and 4 of 1976 of the Sub Court, Palakkad, M.V.Subramanian was adjudicated as an insolvent. The Plaintiff is the Official Receiver appointed in the insolvency petition. According to the plaintiff, the defendants had availed various loans from M.V.Subramania Iyer and Sons, Bankers on execution of Promissory Notes marked as Exts.A1, A4, A6, A8, A9 and A11 in the suit. There had been partial repayments. On giving credit to the same, the suit is filed for realisation of the balance amount of Rs.7,80,467/-. The 1st defendant had created equitable mortgage of the plaint schedule property belonging to him by deposit of title deed namely Settlement Deed No.3184 of 1964, to secure the debts. The suit is filed on obtaining permission from the insolvency court to sue on behalf of the estate of the insolvent.

(3.) The 1st defendant alone contested the suit. He denied the alleged transactions, execution of promissory notes and also the creation of equitable mortgage. According to him, the defendants had transactions with Narasimha Financing Company which were duly repaid. The documents in connection with the same have been misused to stake the present claim. It is also contended that the plaint claim is barred by limitation.