K. Gnanaprakasam, Chairperson— The OA filed by the appellant/applicant Bank before the DRT -II at Chennai, was dismissed against defendants 4 and 5 by its order dated 27.9.2006. Aggrieved by the same, this appeal has been filed.

I have heard the learned Advocates for the appellant and the respondents.

2. The principal question involved in this appeal is whether the Power of Attorney executed by the Managing Director of the 4th defendant company to give any guarantee or provide any security without a special resolution of the company is valid under law.

The appellant’s case is that the defendants 3 to 5 through their power agent the 2nd defendant in the OA, deposited the title deeds relating to their immovable properties on 26.8.1990, with the appellant’s Anna Nagar Branch, Madras, with an intention to create equitable mortgage. The defendants 3 to 5 have also executed Memorandum of deposit of title deeds on 28.8.1990, confirming the deposit of title deeds on 26.8.1990, and the creation of equitable mortgage and, therefore, the defendants 4 and 5 are liable and the order passed by the DRT otherwise is not proper and valid.

3. The learned Advocate for the 4th defendant has point