Punjab National Bank v. Sunil Sahani

Misc. Appeal No. 15/2022 Date: 17.03.2023

Punjab National Bank Vs. Sunil Sahani

Present: Shri S. K. Pandey, counsel for the appellant-Bank, Shri Akshat Agarwal alongwith Shri V. K. Shukla, counsel for the respondent nos. 1 & 2,

Learned counsel for the appellant contends that the question involved in the present appeal is, whether the Bank has a general lien over the title deeds deposited by the borrower pursuant to the amount, which may be outstanding against the borrower with regard to the other loans, apart from the loan in which the property was mortgaged and a reference has been made to the section 171 of the Contract Act.

learned counsel for the respondents contends that in the present matter, the property was mortgaged and the entire amount has been paid and no dues certificate has also been issued, but the title deeds are not being returned on the ground that in some other loan accounts, some OTS amount is due, therefore, as per section 171, the Bank is not entitled to return the title deed. Learned counsel for the respondents has relied upon the judgment passed by the Hon’ble Apex Court in Zonal Manager, Central Bank of India Vs. Devi Ispat Ltd & Ors, (2010) 11, SCC 186., which has been followed by the Hon’ble Bombay High Court, Nagpur Bench, Nagpur in M/s Mahalaxmi Textiles Vs. Syndicate Bank, decided on 06.07.2022 as well as Hon’ble Gujarat High Court in writ petition no. 32 of 2022- Mr. Sunil Vs. Union Bank of India. Learned counsel for the respondents has also served the said judgments upon the counsel for the appellant, who states that he shall file response to the same by the next date fixed.

List this case on 06.04.2023 for further hearing.

Justice R. D. Khare Chairperson