S.KASILINGAM Vs. CHAIR PERSON

JUDGEMENT

(1.) The petitioner has filed the above Writ Petition to issue a Writ of Certiorarified Mandamus to call for the records and quash the impugned order dated 05.05.2014, passed in R.A.No.24 of 2012 by the Debt Recovery Appellate Tribunal, Chennai and consequently confirm the order dated 11.01.2012, passed in O.A.No.180 of 2010 by the Debts Recovery Tribunal-II, Chennai.

(2.) The 3rd respondent-bank filed O.A.No.180 of 2010 on the file of the Debts Recovery Tribunal-II, Chennai for recovery of a sum of Rs.30,28,919/- together with future interest. The 4th respondent-partnership firm, represented by respondents 5 to 7 obtained loan from the 3rd respondent bank. One A.V.Ramalingam, who was the 5th defendant in the Original Application, stood as a guarantor for the said loan. The loan was obtained by the respondents 4 to 7 on 12.03.2003 and the guarantor executed the equitable mortgage in respect of his property on the same day i.e. on 12.03.2003.

(3.) The Writ Petitioners, who are the defendants 12 and 13 in O.A.No.180 of 2010 and who are the grand sons of A.V.Ramalingam contended that their grand-father had executed a settlement deed in respect of the mortgaged property on 05.03.2013 itself and therefore, a charge cannot be created in respect of the said property.