K.M. Natarajan, J.

1. This appeal is filed by the 2nd defendant in the suit challenging the judgment and decree passed by the learned Principal Subordinate Judge, Coimbatore in S.No. 179 of 1979.

2. The facts which are necessary for the disposal of this appeal can be briefly stated as follows: The 1st respondent in this appeal, who is the plaintiff in the suit, has filed the suit for recovery of a sum of Rs.15,653.75 on the basis of a mortgage deed dated 3-2-1965 executed by one Sankarappa Thevar and his son the 1st defendant herein, for a sum of Rs. 17,000 agreeing to pay interest at 12 per cent per annum. Subsequently, Sankarappa Thevar died and his son the 1st defendant alone is his legal representative. Since the 1st defendant has paid only a portion of the amount, the suit has been filed for the balance.

3. The suit is resisted by the 1st defendant on the ground that he is entitled to the benefit of Section 2 of Act 40 of 1979. The 1st defendant has also pleaded some oral discharge. The 2nd defendant, who is the appellant herein contended that she is a prior mortgagee of item 2 of the suit property and the 1st defendant had become subscriber of a chit for Rs. 11,000 condu