Mortgages executed by a guardian on behalf of minors are enforceable only if proved to benefit the minors, and agreed interest rates must be followed in recovery claims.

JUDGMENT :

1. Original Suit O.S.No.4328 of 2018 (on the file of the XVII City Civil Court, Chennai) is for recovery of money based on the mortgage deeds and promissory notes. The Trial Court partly allowed the suit vide judgement and decree dated 10.08.2021.

2. This Appeal Suit is preferred by the plaintiff as against the disallowed portion of the relief prayed.

3. Averments in the plaint:-

The first defendant Mrs.Sulochana, on her behalf and on behalf of her minor children/the 2^nd and 3rd defendants, mortgaged the suit schedule mentioned property with the plaintiff on 17.03.2013 and borrowed Rs.2,00,000/-. She agreed to repay the same with interest at the rate of 24% p.a. The title deeds of the suit schedule property were deposited with the plaintiff as collateral security for the loan advanced. Subsequently, the defendants borrowed a further sum of Rs.2,00,000/- from the plaintiff on 18.11.2014 and executed a simple mortgage deed in favour of the plaintiff. Both the mortgage deeds (Ex.A-1 and Ex.A-2) were duly registered . Later, the first defendant borrowed Rs.2,25,000/- on 12.08.2016 and Rs.75,000/- on 15.09.2016. For the above said borrowings, she executed pro-notes (Exs.A3 and A4) on the respective dates for the respective amounts. Towards the mortgage amount, the defendants paid interest till December 2014 and thereafter, wilfully neglected to pay interest or to discharge the loan amount. Hence, after causing notice through an Advocate on27.07.2018, the suit been laid for the following relief:-

(a) To pass a Preliminary Decree for mortgage against the defendants for a sum of Rs.4,00,000/- with subsequent interest from the date of suit till the date of realisation at 24% per annum directing them to pay the amount failing which to pass final decree or sale of mortgaged property for realisation of the amount within the time frame to be fixed by this Hon'ble Court.

(b) In default of payment on or before a date to be fixed by this Hon'ble Court, directing the sale of the mortgaged properties described in the schedule hereunder and the application of the proceeds in payment of the decreed amount.

(c) To pass a decree directing the defendants to pay the sum of Rs.3,00,000/- together with interest at 18% per annum from the date of suit till date of realisation in respect of two demand promissory note dues, due and payable by the defendants to the plaintiff.

(d) Directing the defendants to pay the cost of the suit;

(e) Grant such other suitable relief or reliefs as this Hon'ble Court deems fit and property in the circumstances of the case and thus render justice.

4. Averments in the Written Statement: -

The first defendant filed a written statement and the same was adopted by her children, who are the defendants 2 and 3. In the written statement, the contractual relationship between the plaintiff and the defendants denied, Execution of mortgage deed for borrowing money denied. Likewise, the execution of pro-notes and borrowal of Rs.2,25,000/- and Rs.75,000/- on two different dates also denied.

5. According to the defendants, they got the suit schedule property through a release deed. They are the joint owners of the property. The 2^nd and 3rd defendants were minors at the time of executing the alleged mortgage deed. No prior permission obtained from the Court before creating encumbr