1. The first defendant in the Original Suit is the appellant in the second appeal. Plaintiffs 1 to 3 in the original suit are the respondents in the second appeal. The appellant Purasawakkam Permanent Benefit Fund Ltd. is the mortgagor, with whom the suit property was mortgaged by the respondents 1 to 3/plaintiffs 1 to 3. Since mortgage debt was not discharged fully, the appellant/first defendant took steps for bringing the property by public auction engaging the 4th respondent/second defendant as auctioneer. Pursuant to the same, the respondents 1 to 3 herein/plaintiffs filed the suit O.S.No.2182/2003 for redemption of mortgage and for a permanent injunction restraining the appellant and the 4th respondent/second defendant from bringing the mortgaged property for auction.

2. The suit was resisted by the defendants based on the averments in the written statement filed by the appellant/first defendant, which was adopted by the 4th respondent/second defendant. At the conclusion of trial, the learned trial judge (XVIII Assistant Judge, City Civil Court, Chennai) dismissed the suit with cost by judgment and decree dated 09.03.2005. As against the same, the respondents 1 to 3 herein/plaintiffs 1 to 3 filed an appeal in A.S.No.334/2005 on the file of the City Civil Court. The same was heard and disposed of by the learned Additional District and Sessions Judge (FTC No.4), Chennai by a judgment and decree dated 18.12.2008. The learned appellate judge allowed the appeal, set aside the decree dated 09.03.2005 passed by the trial judge in O.S.No.2182/2003 and decreed the suit for redemption of mortgage by passing a preliminary decree for redemption directing the respondents 1 to 3 herein/plaintiffs to pay Rs.4,00,000/- towards principal and Rs.1,38,844/-towards interest with proportionate cost and further interest on the above said principal amount from the date of decree of the lower appellate court (18.12.2008) till realisation at the rate of 6% per annum. It was also provided therein that in case of default of payment of the said amount within six months from the date of the impugned decree passed by the lower appellate court, the property would be directed to be sold. As against the same, the appellant/first defendant has filed the second appeal.

3. For the sake of convenience, the parties are referred to in accordance with their ranks in the suit and at appropriate places their ranks in the second appeal will also be indicated.

4. Admittedly the first plaintiff Shanmugam availed a loan of Rs.4,00,000/- from the Purasawakkam Permanent Benefit Fund Ltd./first defendant, creating a mortgage in respect of the property described in the plaint schedule, namely the land measuring 3,000 sq.ft. comprised in T.S.No.71 and the building thereon bearing door No.55, Vinayagar Koil Street, Venkatapuram, Velachery Road, Saidapet. The mortgage was created by all the three plaintiffs on 06.12.1995. The loan amount availed by mortgaging the suit property, was agreed to be repaid in 92 equated monthly instalments of Rs.8,800/-. It was averred in the plaint that the first plaintiff and his wife had paid a sum of Rs.2,30,000/- on different dates towards the mortgage debt; that through one Doss employed in the first defendant Fund, the first plaintiff's wife had paid over Rs.3,60,000/-besides a sum of Rs.60,000/- paid to the said Doss and another worker of the first defendant by name Chandrasekaran towards official charges and commission; that the balance amount payable as on the date of the plaint was only Rs.1,50,000/-; that the first defendant issued a notice dated 03.03.2003 informing the plaintiffs that the balance amount as on 31.03.2003 was Rs.11,21,311.69P without giving copies of the accounts statement; that the plaintiffs were not agreeable for the amount demanded in the notice; that taking advantage of the helpless situation, which led to the default in redemption of the mortgage, the first defendant was taking steps to bring the pro