G.V. FILMS LTD Vs. PRABHUDAS GURUMUKH SINGH

JUDGEMENT

(1.) This intra Court Original Side Appeal has been preferred by the 1st defendant, aggrieved by the judgment and decree dtd. 30/6/2011 made in C.S.No.237 of 2005 on the file of Original Side of this Court.

(2.) The 1st respondent as plaintiff filed the said suit in C.S.No.237 of 2005 for recovery of a sum of Rs.57,99,700.00 together with interest at 18% p.a on Rs.25,00,000.00 and also prayed for a preliminary mortgage decree with further prayer to bring the property to sale by public auction in the event of default committed by the defendants in payment of the decree amount and for a personal decree against the 3rd defendant in the event of the sale proceeds not being sufficient to satisfy the decreetal amount.

(3.) It is the case of the plaintiff/1st respondent that the 1st defendant company represented by its Chairman and Managing Director Mr.G.Venkateswaran, approached the plaintiff firm in October 1999, seeking financial assistance to the tune of Rs.25,00,000.00 offering the property of the 2nd defendant as security. The plaintiff agreed to the request of the 1st defendant and lent a sum of Rs.25,00,000.00 by executing a bond dtd. 20/10/1999, which was executed by the Managing Director of the 1st defendant company and the original title deeds of the property offered as security were also handed over to the plaintiff and thereby an equitable mortgage stood created.