L.N.Mittal, J.

1. Respondent No. 1 - plaintiff Life Insurance Corporation of India filed suit against Preet Singh Dalal, already dead before filing of the suit, through his legal representatives i.e. Raj Bala Dalal - appellant (wife) and Priya and Preeti - proforma respondents No. 2 and 3 herein (daughters). Appellant Raj Bala Dalal was also impleaded as defendant No. 2 in her individual capacity. The plaintiff alleged that Preet Singh Dalal (since deceased) had raised loan of Rs. 1,90,000/- from the plaintiff and agreed to pay the same with interest @ 14% per annum compounded monthly and in the event of default, additional interest @ 3% per annum was payable. Defendant No. 1 created equitable mortgage of his House No. 2137, Sector 37, Faridabad. Defendant No. 2 - appellant stood guarantor for the said loan. Some LIC policies were also deposited as collateral security by the loanee. Ultimately, a sum of Rs. 2,32,168/- remained due from the defendants to the plaintiff as on 01.04.2003. Making these averments, respondent No. 1 filed suit for recovery of the said amount.

2. The defendants pleaded ignorance about raising of loan by Preet Singh Dalal and also about terms and con