JUDGEMENT :

The third defendant in O.S No.590 of 1993 on the file of the I Additional Sub Court, Madurai is the appellant in this second appeal while Catholic Syrian Bank Ltd., is the plaintiff in the suit. The case of the plaintiff is that the first defendant Prakash Wines represented by its Proprietor Suresh Babu applied for loan to the plaintiff bank. The plaintiff bank agreed to grant over draft account facility to the limit of one lakh. The first defendant executed a hypothecation deed hypothecating the goods in favour of the plaintiff bank on the same date. The second defendant A.P.Arunachalam stood as the guarantor for the transaction. Ex.A1 dated 22.07.1989 pro note was executed in favour of the second defendant A.P.Arunasalam who in turn made it over by making an endorsement in favour of the bank. A.P.Arunachalam had already availed loan from the bank and he had mortgaged the suit property in favour of the bank. He had also deposited the original title deeds with the bank. The second defendant executed Ex.A7 22.07.1989 in favour of the bank stating that the title deeds deposited in respect of the account of Aruna Wines may be taken as deposited for the equitable mortgage fo