JUDGMENT

Uday Umesh Lalit, J.

Leave granted.

2. These appeals by special leave challenge the correctness of the judgment and order dated 07.01.2014 passed by the High Court of Madras in Appeal Suit (MD) Nos. 218-219 of 2010.

3. The facts leading to the filing of these appeals in brief are as under :-

A. The property in question is a plot admeasuring about 3708 sq.ft., with a marriage hall ("Suit Property", for short) situated in Village Parasuramanpatti, Madurai North Taluk, Tallakulakam sub- Division, Madurai North. The appellant had mortgaged the suit property with the Catholic Syrian Bank (later Federal Bank Ltd.) and the bank had initiated recovery proceedings, namely, O.S. No.40 of 1996 before 3rd Additional Sub-Court, Madurai which was later transferred to DRT, Coimbatore and renumbered as Transfer Application No.1441 of 2002.

B. On 30.06.2000 the appellant entered into an agreement (Ex.A1) intending to sell the suit property to respondent No.1. The consideration agreed was Rs. 19 lakhs out of which Rs. 1 lakh was paid by way of advance. This agreement recited an assurance on the part of the appellant, "...that there is no encumbrance over the Schedule mentioned property" but went