MARY Vs. CENTRAL BANK OF INDIA REPRESENTED BY ITS POWER OF ATTORNEY AND REGIONAL MANAGER OF MADURAI REGION

JUDGEMENT

(1.) The first defendant in O.S. No. 94 of 1991 is the appellant. The plaintiff Bank filed the suit on the basis of the equitable mortgage created by one J.A. Martin the husband of the 1st defendant and father of the 2nd defendant and the suit is filed for the recovery of Rs. 3,09,435-45.

(2.) The case of the plaintiff is that Late J.A. Martin borrowed a sum of Rs. 68,000/- and executed a promissory note on 28.6.1979 for the purpose of purchasing a mechanised boat and defendants 2 and 3 stood as guarantors for the loan and the final payment by the plaintiff was made on 21.11.1979 and the late Martin executed an agreement of hypothecation on 28.6.1979 and deposited the sale deed in respect of the properties with the plaintiff Bank on 27.6.1979 with an intention to create equitable mortgage for the loan facilities to be granted by the plaintiff Bank and the loan is to be repaid in 60 equal monthly instalments over a maximum period of four years with due allowances of two months per year during non-fishing season which are to be decided by the Bank. The borrower did not make any payment and therefore the suit was filed by the Bank against the wife of the borrower the 1st defendant and the guarantors for the recovery of the amount.

(3.) The suit was resisted by the 1st defendant the wife of the borrower on the main ground that the suit is barred by time. She also denied the allegations that the final payment alleged to have been made on 21.11.1979 at the instance of J.A. Martin is not true and as per the documents the suit ought to have been filed within 12 years from the creation of mortgage and the suit having been filed on 11.9.1991 beyond the period of 12 years is barred by time.