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25. The appeal is allowed. Impugned judgment and decree dated 1.10.2007 is set aside. The suit filed by the plaintiff is dismissed. We leave the parties to bear their own costs all throughout.

26. If any money has been deposited by the appellant pursuant to the order dated 9.1.2008 we direct the Registry to return the same to the appellant together with accrued interest if any.

PRADEEP NANDRAJOG, J.

J.R. MIDHA, J.