- (1.) Leave granted. The appellant filed a suit bearing O.S. No. 7 of 1986 against respondents Nos. 1, 3 and 4 in the Court of Subordinate Judge, Rangareddy District at Saroor Nagar, Andhra Pradesh for recovery of Rupees 97,21,274.11 with interest thereon. The further prayer was, in default of payment a final decree might be passed directing the sale of mortgaged properties and for ancillary reliefs. The averments in the plaint are briefly as follows: The first respondent is a limited company 3rd and 4th respondents are the Advisors and Directors respectively of the first respondent company. The first respondent deposited with the appellant the documents of title relating to its landed property at Industrial Development Area, Nacharam Tehsil, District Hyderabad (presently Rangareddy District) with an intention to create an equitable mortgage of immoveable property covered by those documents together with all structures and buildings thereon.
(2.) On 6-10-76, the third and fourth respondents executed separate guarantee in respect of the facilities granted to the first respondent guaranteeing repayment of amounts. On 20-1-84, one of the Directors declared that equitable mortgage by deposit of title deeds dated 6-10-75 would also form security for the letters of credit, fresh funded term loan, guarantee limited and other facilities allowed to the first respondent, by the appellant. The necessary forms in this regard were filed before the Registrar of Companies, Maharashtra. at Bombay for registering the charges.
(3.) In order to secure the amount under the various heads/credit facilities the first respondent deposited on 17-8-79 with the appellant's Sundernagar Branch, Bombay, an agreement for sale in respect of the first floor of the building belonging to the first respondent. The first respondent requested that its account be transferred from Sundernagar Branch, Bombay to Hyderabad Main Branch of the appellant.;