SIDHARTH CREDIT AND INVESTMENT Vs. S.RAMASWAMY

JUDGEMENT

(1.) The suit has been filed for the following reliefs:

(2.) The case of the plaintiff is that the 1 st plaintiff is a non- banking financial Company. The plaintiffs 2 to 5 are the Directors of the 1st plaintiff Company. The defendant during the month of October 2002, approached the 1st plaintiff and requested for financial assistance for his business. The defendant assured that he would offer suitable mortgage security. The 1st plaintiff lent to the defendant a sum of Rs.5,00,000/- and the defendant executed a simple mortgage on 31.10.2002. The defendant sought further financial assistance from the 1st plaintiff to the tune of Rs.1,10,00,000/- and in this regard, the defendant created a mortgage by deposit of title deeds in favour of the plaintiffs. The defendant deposited his title deeds on 31.10.2002. The amount of Rs.1,10,00,000/- was paid by means of cheques issued by the plaintiff to the defendant. As the defendant failed to pay the said amount the suit has been filed.

(3.) The learned counsel for the defendant admits the registered simple mortgage for a sum of Rs.5,00,000/-. It is submitted by the learned counsel for the defendant that there was no equitable mortgage for a sum of Rs.1,10,00,000/-.