RAJA HOLDINGS Vs. N KANTHIMATHI

JUDGEMENT

(1.) The brief facts of the case are as follows:-

(2.) The second defendant has filed a counter statement and resisted the interlocutory application. The defendant stated that the defendants 1 and 2 had executed a mortgage deed in favour of the City Union Bank, Kumbakonam. As such, the first charge is created in favour of the said Bank in respect of the properties covered by the petition for attachment before judgment. Further, the pronotes stipulates exorbitant rate of interest and it is un-consumable. Further, the transaction is substantially unfair. The first and second defendants have paid a sum of Rs.3,35,00,000/- to the plaintiff by way of cheque as settlement for the loan. Further, the defendants are agriculturists and as such, they are entitled to receive relief under the Tamil Nadu Debt Relief Act, 38 of 1972. Further, the said property mentioned in the petition is under mortgage after deposit of title deeds in favour of City Union Bank, Kumbakonam in respect of loan obtained by the defendants and Rs.50,00,000/- have been paid by the defendants by arranging to sell a portion of the properties in Chennai. The City Bank is claiming a balance of Rs.1.5 crores. Further, the plaintiff has issued legal notice under Section 138 of the Negotiable Instruments Act, by using updated cheque leaves. Hence, the defendant has prayed to dismiss the said application.

(3.) On considering the averments of both parties, the learned Judge had framed an issue, viz., "Whether there are sufficient reasons to pass an order of attachment before judgment -