ARVIND BAGRECHA Vs. K. MEKALA

JUDGEMENT

(1.) In a mortgage suit, the plaintiff seeks a decree for a sum of Rs.1,70,00,000.00 from the first, second and third defendants. In default, the sale of the mortgaged property is prayed for.

(2.) The plaintiff stated that he is a financier by profession. He was introduced to the first defendant and her husband by a mutual acquaintance. In June 2008, the first defendant and her husband approached the plaintiff for a loan in relation to the construction of a party hall-cum-residence in land ad measuring 3000 square-foot. As security for the loan, they offered the property described in the schedule to the plaint by stating that the said property was worth more than Rs.40.00 lakhs.

(3.) According to the plaintiff, the first defendant and her husband agreed to pay interest at the rate of 3% per month on delayed payments. On 18/6/2008, the first disbursement of Rs.90,000.00 was made. On the same day, the first defendant and her husband created an equitable mortgage over the property described in the schedule to the plaint in favour of the plaintiff by depositing the original title deed of Sale Deed bearing Document No. 2871 of 1996. By way of abundant caution, the plaintiff stated that the first defendant and her husband were also called upon to execute a general power of attorney deed in his favour. Upon such request, the General Power of Attorney Deed dtd. 19/6/2008 (the General Power of Attorney) was executed in favour of the plaintiff, and registered as Document No. 2380 of 2008. In addition, since the fourth defendant was known both to the plaintiff and the first defendant, an agreement of sale was executed in favour of the fourth defendant on 30/7/2008. This agreement of sale was registered as Document No. 2520 of 2008. However, the plaintiff stated that this document was not acted upon.