(1.) Tmt. Janaki Ammal and others, the appellants herein, are the defendants 4 to 11 in the suit. Having lost before both the Courts below, they have filed the second appeal.
(2.) S.S. Subramanian, the first respondent herein filed the suit in the year 1981 for redemption of Othi and for mesne profits against one Kandasamy and the appellants. It is the case of the plaintiff that the suit properties originally belonged to one Ramasamy who usufructuarily mortgaged the properties in favour of one Chellappa Mavali in 1962 and the said mortgagee assigned the said mortgage in favour of Kandasamy Chettiar, the first defendant. These properties were brought for sale in a suit filed ogainst Ramasamy through the execution proceedings in the year 1966 and the same was purchased by one Thirumalai Chettiar in Court auction. After the death of Thirumalai Chettiar, the defendants 2 and 3, the heirs of Thirumalai Chettiar sold the suit properties in favour of the plaintiff. The plaintiff, the vendee filed the above suit claiming redemption of the mortgage.
(3.) It is the case of the defendants that the Court auction sale in favour of Thirumalai Chettiar was not valid, since the same was made during the pendency of the insolvency proceedings. As the properties vested with the Official Receiver pursuant to the insolvency proceedings, the sale in favour of Thirumalai Chettiar is not valid and binding pursuant to the provisions of the Provincial Insolvency Act. It is further contended by the defendants that the Court auction purchaser was aware of the insolvency proceedings, and as such, the Court auction purchaser is not a bona fide purchaser. The vendee is not entitled for redemption of mortgage and hence, the suit is liable to be dismissed.