JUDGMENT :

(PRAYER : First Appeal filed under Section 96 C.P.C. read with Order XLI A(1) & 2 CPC,1908 against the decree and judgment dated 22.09.2014 made in O.S.No.9746 of 2010 on the file of the XV Additional Judge, City Civil Court, Chennai.)

1. The present appeal is filed against the decree and judgment dated 22.09.2014 made in O.S.No.9746 of 2010 on the file of the XV Additional Judge, City Civil Court, Chennai.

2. For the sake of convenience, the parties are referred to as per their ranking in the trial court and at appropriate places, their rank in the present appeal would also be indicated.

3. Briefly the facts of the case of the plaintiff flow as follows :

a) The suit property is part of the larger extent measuring 7 grounds and 1918 sq.ft. situate in R.S.No.1548/26, 1548/47 and 1548/61, Block No.30, Mylapore Division at 165, Eldams Road, Alwarpet, Chennai.

b) The entire property was originally owned by one Murali Padmanabhan and Mukund Padmanabhan who entered into a joint development agreement M/s.Alsa Invesments Pvt. Ltd. The name of the complex "Alsa Regency" is shown as the 4th defendant in the suit.

c) The 3rd defendant M/s.Thillai Nataraj Chits Private Limited had entered into an agreement with the 4th defendant on 04.02.1994 (EX.A1) for purchase of a shop measuring 612 sq.ft. for a consideration of Rs.4,89,000/-. The undivided share of land for this property (the suit property) was conveyed to the 3rd defendant M/s.Thillai Nataraj Chits Private Limited by way of three different sale deeds dated 20.05.1994 (Ex.A2 series) and registered as Document Nos.457, 458 and 459/94 on the file of the District Registrar, Madras Central.

d) The 3rd defendant had mortgaged the suit property to three different persons P.Logan, L.Mohana and D.Murugan for a consideration of Rs.4,00,000/- each by way of simple mortgage deeds dated 13.10.1997 (Ex.A3 to Ex.A5).

e) On 25.06.2003, the 3rd defendant sold the suit property for a consideration of Rs.10,00,000/- by a sale deed Ex.A8 to the plaintiff and immediately thereafter, there was a deed of rectification dated 07.08.2003 (Ex.A9) in favour of the plaintiff to rectify a bona fide mistake made in mentioning the area of undivided share of land.

f) According to the plaintiff, she was informed about the existence of the mortgage of the suit property prior to this sale. The amount paid to the 3rd defendant was utilised to discharge the mortgage loans and she also obtained the original sale deeds and cancelled mortgage deeds.

g) The plaintiff had also after obtaining the legal opinion dated 30.11.2004 (Ex.A10) availed an educational loan for her son from Indian Bank and the suit property was offered as collateral security. The plaintiff had also transferred the property tax (Ex.A11, Ex.A16 and Ex.A17) and EB connection (Ex.A19 to Ex.A21) in her name and was also in possession of an encumbrance certificate (Ex.A12) obtained prior to the sale.

h) In the meanwhile, the 2nd defendant M/s.Sri Neelambigai Textiles (P) Ltd., had availed certain credit facilities from the 1st defendant the Karnataka Bank Limited as early as 1996 and since the recovery in the account was not forthcoming the 1st defendant had initiated SARFAESI proceedings before Debts Recovery Tribunal (DRT) - II, Chennai in O.A.No.668 of 2001. The suit property owned by the 3rd defendant was offered as collateral security to the 1st defendant Bank for the said loan. Therefore, the Recovery Officer, DRT-II, Chennai had initiated proceedings in D.R.C.No.52/2004 dated 22.03.2004 attaching the suit property and fixing the date of auction as 16.02.2005.

i) The plaintiff on coming to know about this auction of the suit property filed her objections before the Recovery Officer, DRT-II, Chennai. She also requested the mortgagee of the suit property i.e. Indian Bank, Adyar Branch, Chennai, where she had availed an educational loan of Rs.5,00,000/- for her son by offering the suit property as collateral security, to produce all the related