Petitioners sought release of property mortgaged as surety for a cash credit facility after guarantor's death. Bank had agreed to release but delayed. Court directed bank to decide on petitioners' representations within six weeks.
Direction to the bank to decide on petitioners' representations for release of mortgaged property within six weeks.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.M.MANOJ
WEDNESDAY, THE 24TH DAY OF JULY 2024 / 2ND SRAVANA, 1946
WP(C) NO. 26342 OF 2024
PETITIONER/S:
1RIFASH
AGED 32 YEARS
PERUMATTY, NANNIYODE P O, EANTHALPALAM, PALAKKAD, PIN -
678534
2 SAINABA AGED 54 YEARS
W/O LATE KASIM, NAGARPADAM, MEENKARA POST, MUTHALAMADA,
PALAKKAD, PIN - 678507
BY ADVS.
SYAM J SAM
SOBHA KUMARY K.
DANIEL MATHEWS KOSHY
RESPONDENT/S:
1 UNION OF INDIA SREERANGAM, 5TH CROSS, MANDIRAM ROAD, AYYAPPANKAVU, ERNAKULAM, PIN - 682018
2 BANKING OMBUDSMAN C/O RESERVE BANK OF INDIA , BAKERY JUNCTION, THIRUVANTHAPURAM, PIN - 6950333 GENERAL MANAGERTHE SOUTH INDIAN BANK LTD HEAD OFFICE, TB RD, MISSION
QUARTERS, SAKTHAN THAMPURAN NAGAR, VELIYANNUR,
THRISSUR, KERALA, PIN – 680001
SRI. SAJITHKUMAR V., DSGI
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
24.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 26342 OF 2024
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JUDGMENT
The 1st petitioner availed a cash credit scheme from the South Indian Bank by putting up two properties as sureties, one belonging to the 1st petitioner and the other belonging to one Kasim. After availing the cash credit scheme, the 1st petitioner never failed a single payment in his repayments. Later, Kasim, who offered his property as surety, and the husband of the 2nd petitioner, passed away. Accordingly, the petitioners submitted representations before the bank for getting the property released to the guarantor’s family and a similar representation was submitted by the 2nd petitioner and her family. The bank by Ext.P4 letter dated 16.12.2023, informed the petitioners that the said property will be released to the guarantor’s family at the earliest, but till this point of time, the property has not been released. Now, the petitioners are under severe financial constraints and any further delay will only cause more financial stress to the petitioners.
WP(C) NO. 26342 OF 2024
facilities with continuance, it is admitted under additional terms and conditions that “release of 331.86 cents of landed property having mango plantation in Sy.No.24/5, 24/3, 25/1, Block No.58, Muthalamada 2, Chittur, Palakkad, in the name of Mr. Kasim, valued at Rs.75.57 lakhs” is allowed. Even thereafter, no steps have been taken by the 3rd respondent bank to release the said property to the 2nd petitioner as stated in Ext.P4. This is the circumstances in which a complaint is preferred before the 2nd respondent.
WP(C) NO. 26342 OF 2024
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the date of receipt of a copy of this judgment.
The writ petition is disposed of accordingly.
Sd/-
P.M.MANOJ
JUDGE
uu
24.07.2024
WP(C) NO. 26342 OF 2024
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APPENDIX OF WP(C) 26342/2024
PETITIONER EXHIBITS
Exhibit P1THE TRUE COPY OF THE DEATH CERTIFICATE
OF THE GUARANTOR MR KASIM DATED
21/05/2023
Exhibit P2THE TRUE COPY OF THE LETTER SENT BY THE
FIRSTPETITIONERTOTHETHIRD
RESPONDENT BANK DATED 15/07/2024
Exhibit P3THE TRUE COPY OF THE LETTER SENT BY THE
SECOND PETITIONER TO THE THIRD
RESPONDENT BANK DATED 13/07/2024
Exhibit P4THE TRUE COPY OF THE LETTER SENT BY THE
RESPONDENT BANK REGARDING THE RENEWAL
OF CREDIT FACILITIES WITH CONTINUANCE
DATED 16/12/2023
Exhibit P5THE TRUE COPY OF THE COMPLAINT FILED
BEFORE THE SECOND RESPONDENT REGARDING
THE ACTIONS OF THE THIRD RESPONDENT
BANK DATED 19/07/2024
1 issue framed by the court
Whether the bank should be directed to decide on the petitioners' representations for release of mortgaged property within a specified time frame.
Rifash
Sainaba
Union of India
Banking Ombudsman
General Manager, The South Indian Bank Ltd
P.M. Manoj
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court