Dipak Misra, J.

1. The factual matrix and the question of law being similar in these writ petitions they were heard analogously and are disposed of by this common order. For the sake of clarity and convenience the facts in W.P. No. 6905/2000 are herein depicted.

2. The petitioner, Life Insurance Corporation of India (hereinafter referred to as 'the Corporation') was established by notification dated 1st September 1956 under Section 3 of the Life Insurance Corporation Act, 1956. The affairs of the Corporation are governed by the aforesaid Act and the Rules framed thereunder as well as under the Insurance Act, 1938. The central office of the Corporation is located at Jeevan Bima Marg, Bombay and under the Central Office there are Zonal Offices. The Central Zonal Office is located at Bhopal controlling the Divisional and Branch Offices in the entire State of Madhya Pradesh. There is a Divisional Office at Raipur and under the said Divisional Office there are a number of Branch Offices.

3. It is averred in the writ petition that the Corporation filed an O.A. No. 10/99 before the Debts Recovery Tribunal, Jabalpur (hereinafter referred to as 'the Tribunal') for realization of a certain sum from the respondent Nos. 1 and 2. It was pleaded before the Tribunal that the respondent No. 1 had applied to the Corporation on 10-8-88 for grant of loan of Rs. 2,50,000/- for the purpose of constructing a cinema building. The Corporation sanctioned the loan in its M-1 Scheme by issuing a loan offer letter dated 21-1-1989. The said respondent No. 1 accorded its acceptance for the aforesaid loan amount in the loan offer letter itself on the terms and conditions mentioned therein. The amount of loan was to be repaid within a period of 10 years in 20 equal half yearly instalments commencing from the date of disbursement of the first instalment of the loan with interest at the rate of 16% per annum payable half yearly and compounded with half yearly rests and in case of default in the payment of instalment of interest and/or repayment of principal, an additional interest at the rate of 2.5% per annum would become payable on the outstanding loan, in addition to the rate of interest, as aforesaid. Out of the aforesaid sanctioned amount of loan, the Corporation paid Rs. 2,00,000/- by Cheque No. 345116 dated 23-1-1989 drawn on the Punjab National Bank, Raipur and the respondent No. 1 executed a receipt acknowledging the payment of the aforesaid loan in favour of the Corporation. The respondent No. 1 executed a Demand Promissory Note dated 23-1-1989 for Rs. 2,00,000/-promising to pay the aforesaid sum on demand alongwith the interest as incorporated therein. The defendants, as a collateral security of the aforesaid loan amount, created an equitable mortgage in respect of the land situate on Khasra No. 1396/1 and 1396-2 admeasuring an area of 0.166 and 0.137 hectares respectively, P.C. 28 situate in village, Tedesara district, Rajnandgaon and also deposited the original sale deeds dated 17-8-1987 and 2-12-1987 respectively with the Corporation. The details of the property mortgaged are mentioned in Schedule-I of the original application. It was also putforth in the original application that the property purchased under the aforesaid sale deeds related to Shiv Shanker Kewat, defendant No. 2, and Vijay Kumar Kewat, the son of the defendant No. 1. As Vijay Kumar Kewat was a minor at the time of creation of mortgage in favour of the Corporation, the defendant No. 1 filed an application under Section 8 of the Hindu Minority and Guardianship Act, 1956 in the Court of the Additional District Judge, Rajnandgaon for grant of permission to mortgage the property with the Corporation for the aforesaid loan and the said Court by order dated 9-12-1988 granted the permission to the defendant No. 1 for creation of equitable mortgage and accordingly the defendant No. 1 executed the necessary documents in favour of the Corporation. It has also been putforth that Shiv Shan