D. Murugesan, J.

1. The appeal is directed against the judgment and decree dated 23. 2006 made in Application No.1039 of 2006 in C.S.No.1622 of 1992.

2. For convenience, the parties will be referred to as arrayed in the suit and the appeal arises under the following circumstances:

The plaintiff is engaged in finance business and granting loans on securities and also extending hire purchase and leasing facilities for vehicles and machineries etc. The first defendant approached the plaintiff for a loan of Rs.20,00,000/- and an agreement was also entered into on 11. 91. The first defendant created an equitable mortgage of deposit of title deeds of the property for the value of Rs.20,00,000/- and the second defendant stood as a guarantor. As the first defendant failed to pay the first instalment, the plaintiff issued legal notices dated 29. 91 to both the principal debtor and the guarantor namely, the defendants and the legal notice sent to the second defendant was acknowledged on behalf of him on 29. 91. However, the legal notice sent to the first defendant was not served. Thereafter, the appellant/plaintiff-M/s The Motor and General Finance Limited filed a suit in C.S.No.1622 o