RAJIV SAHAI ENDLAW, J.

I.As. No.7948/1998 (of plaintiff u/S 151 CPC), 11037/2007 (of UPFC for vacation of order dated 14th September, 1998), 3952/2014 (of UPFC for impleadment as party to the suit) & 6220/2014 (of plaintiff for impleadment of UPFC as a party to this suit) in CS(OS) No.1112/1998

1. The suit i.e. CS(OS) No.1112/1998 has been filed under Order 34 of the Civil Procedure Code (CPC), 1908 for recovery of Rs.6,20,98,822.11 paise jointly and severally from the defendant No.1 M/s Vijay Cable Industries, defendant No.2 Mr. Vijay Kumar Bhatia, defendant No.3 Mr. Tilak Raj Bhatia, both partners of M/s Vijay Cable Industries as well as from defendant No.4 Ms. Priya Bhatia wife of the defendant No.2 Mr. Vijay Kumar Bhatia and defendant No.5 M/s Vijay Cables Ltd., by enforcement of equitable mortgage of property No.A-111, New Friends Colony, New Delhi and property No.37, Block-A, Phase-II, Noida, U.P., pleading:

(i) that as on 21st May, 1996, the defendant No.1 of which the defendants No.2&3 were partners owed the principal sum of Rs.3,23,75,000/- to the plaintiff towards price of goods sold, supplied and delivered by the plaintiff to the defendants No.1 to 3 and which amount the defendants No.1 to 3 were unable to pay;

(ii) that the defendants No.1 to 3, to be able to continue making the purchases from the plaintiff, agreed to create charge and/or mortgage over their properties aforesaid and also offered the personal guarantees of the defendants No.2 & 4 and which was agreed to by the plaintiff;

(iii) that the defendants No.2 & 4 created equitable mortgage/charge over property No.A-111, New Friends Colony, New Delhi by depositing title deeds thereof with the plaintiff; similarly, the defendant No.5 created mortgage of the property aforesaid at Noida, U.P.;

(iv) that the defendants were however unable to pay their dues and which at the time of institution of the suit stood at Rs.6,20,98,822.11 paise.

2. Summons of the suit were issued and vide ad-interim ex-parte order dated 28th May, 1998, the defendants were restrained from alienating, transferring or creating third party interest in the two properties aforesaid.

3. The plaintiff filed I.A. No.7948/1998 under Section 151 CPC pleading that the Uttar Pradesh Financial Corporation (UPFC) had issued public notice/advertisement in the newspaper dated 4th September, 1998 inviting offers for sale (under Section 29 of the State Financial Corporations Act, 1951) inter alia of the property No.A-111, New Friends Colony, New Delhi claiming the said property to be lying with UPFC as collateral security and contending that since the original title documents of the said property were lying with the plaintiff, the said property could not be lying as collateral security with the UPFC and seeking to restrain the UPFC from selling, alienating, transferring or creating any third party interest in the said New Friends Colony property.

4. I.A. No.7948/1998 came up before this Court first on 14th September, 1998 when notice thereof was issued and UPFC was in the meanwhile, restrained from selling, alienating, transferring or creating third party interest in the said New Friends Colony property.

5. UPFC filed a reply to the application contending, (a) that the documents filed by the plaintiff of creation of equitable mortgage of the New Friends Colony property in favour of the plaintiff were not the title documents of the said property; (b) that as on 21st May, 1996, when the plaintiff claimed equitable mortgage to have been created, the defendants had no right, title or interest to create equitable mortgage of the property in favour of the plaintiff; (c) that the defendant No.1 and M/s Priya Cable (P) Ltd. had availed loan facility from the UPFC in the sums of Rs.90 lakhs, Rs.90 lakhs and Rs.50 lakhs and to secure the repayment of the aforesaid loans, had deposited the original Conveyance Deed dated 24th October, 1996 of the New Friends Colony property with the UPFC; (d) that the sum of Rs.