The Tribunal allowed a securitization application filed by borrowers seeking the return of title deeds. It held that the bank had no right to retain deeds after full payment in a specific account, invalidating a contractual clause permitting retention for unrelated dues.
The Bank is directed to return the title deeds within 15 days from the date of the order.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
SA/74/2025 MANMEET SINGH Vs ICICI BANK LIMITED
Dated: 03.07.2025 Item No.19
Present:
Sh. AK Khanna, Counsel for the Applicants. Sh.Rahul Garg, Counsel for Respondent Bank.
Manmeet Singh and Paramjit Singh (Applicants) have filed this Securitization Application under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), against A.O. ICICI Bank Limited (Respondent).
DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
Mr.Garg has also placed reliance on Clause 25 of the agreement between the parties and argued that the bank has no obligation to return the securities to the borrower till such time all the dues are paid in full to the Bank. He further argued that the SA is time-barred as there is no material on the record as to when the Applicants had made request to the Bank to return the title deeds.
171. General lien of Bankers, factors, wharfingers, attorneys and policy-brokers.- Bankers, factors, wharfingers, attorneys of a High Court and policy-brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them; but no other persons have a right to retain, as a security for such balance, goods bailed to them, unless there is an express contract to that effect'.
25. ICICI Bank has no obligation to return the securities to the borrower till such time all the borrower’s dues are paid in full to ICICI Bank by the borrower to the satisfaction of ICICI Bank.
DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
Registrar is directed to send a copy of this order to all the parties, as per rule. Thereafter, file be consigned to record room after due compliance.
(A S Narang) Presiding Officer Pronounced in open court DRT-I, Chandigarh MANOJ/03.07.2025
3 issues framed by the court
Whether the Debt Recovery Tribunal has jurisdiction to entertain a securitization application for the return of title deeds after repayment.
Whether Section 171 of the Contract Act applies to bank securities when the account contract states otherwise.
Whether a bank can retain title deeds for dues in another account when the secured assets are distinct.
2 provisions across 2 enactments
Manmeet Singh
Paramjit Singh
ICICI Bank Limited
A S Narang
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
