Rajiyah and another v. Aboobakker & Others – 1978_79 volume 2 page 131

The case between Rajiyah and another (plaintiffs) and Aboobakker & Others (defendants) addressed the issue of whether a settlement before the Debt Conciliation Board resulted in novation or merger of the original mortgage debt, and whether the mortgage continued to subsist after such settlement. It was held that the settlement novated the original debt but did not extinguish the mortgage, thereby preserving the security for the new debt. Statutory interpretation involved the Debt Conciliation Ordinance and the Conciliation Boards Act, with emphasis that lack of certification from the Conciliation Board did not preclude the present action. The appeal was dismissed with costs, reaffirming that a mortgage persists as security despite debt novation, and that the suit was not barred by res judi