I Facts in brief

The second defendant in the suit is the appellant. The suit had been filed by the 1st respondent to enforce a mortgage executed by the 2nd respondent since deceased (1st defendant) for securing a loan of Rs.15,000/-under a registered document dated 30.12.1972.

2. Admittedly, the property which was the subject matter of mortgage had been acquired by the Government for the benefit of the Tamil Nadu Housing Board under the provisions of the Land Acquisition Act. After acquisition, a portion of the property covered under the mortgage, viz., 1 Ground 1402 sq.ft. had been again sold after allotment to the mortgagor, the 1st defendant. The Mortgagor in turn sold a portion of the property to the 2nd defendant. It is under these circumstances that the defendants 2 and 3 are also impleaded as parties to secure a binding decree as alleged subsequent encumbers of the property.

3. The 1st defendant (mortgagor) remained ex parte and defendants 2 and 3 filed their respective written statements.

4. The 2nd defendants contention was that after the acquisition of the property by the Government, all the prior encumber had been completely wiped out and when the property