M PUNITHA Vs. KARUR VYSYA BANK LTD

JUDGEMENT

(1.) The first respondent herein is the third-party to O.S. No. 239 of 1998, on the file of the Principal Subordinate Judge, Salem. It is a suit for preliminary decree for appointing an administrator or panel of administrators, to obtain a true and correct accounts of assets and liabilities of Late P.S. Shanmugam, Chitrakala and Minor Upendra Sundara Raj and that of the defendants 1 to 4 and take possession of the properties and administer them and prepare a list of creditors, to sell the properties and realise all other assets and discharge the debts due to the creditors and other liabilities according to law and handover the remaining assets to the defendants, prohibiting them by means of a permanent injunction from in any manner alienating, encumbering or parting with possession of the suit properties and such other items of properties in their possession and power.

(2.) A preliminary decree was passed in the suit on 8.12.1998 and administrators were also appointed. The first respondent has filed an application under Section 151 C.P.C. In the affidavit it is stated that the Late P.S. Shanmugam and his brother P.S. Sengottuvelu and Others were running a Private Limited Company and for the development of the same, they availed Medium Term Loan on 4.4.1994 for a sum of Rs. 1,60,000/- from the Bank and the credit facilities were secured by an equitable mortgage by deposit of title deeds relating to the immovable properties. As on 1.10.2002, a sum of Rs. 3,24,99,791/- is payable by all the Directors, who are jointly and severally liable.

(3.) The learned counsel appearing for the respondents made an endorsement on the petition acceding to the request made by the petitioner and hence, the learned Principal Subordinate Judge, Salem, has passed an order allowing the petition on 6.1.2006 directing the administrators to handover the possession within two months.