Petitioner sought direction to cancel title deed deposit and release mortgages but bank refused as proposed substitution was undervalued and loan declared NPA with recovery actions initiated under SARFAESI Act.
Writ Petition dismissed with no costs. Connected miscellaneous petition closed.
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W.P.No.10347 of 2021
THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 26.06.2024
CORAM:
THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN
W.P.No. 10347 of 2021 and
W.M.P.No. 10924 of 2021
R.Bhuvaneshwari
...Petitioner
Vs.
1.M/s.Corporation Bank, Presently M/s.Union Bank of India, Represented by its Chief Manager / Authorised Officer, Gee Gee Emerald, 1st Floor, 151, Village Road, Nungambakkam, Chennai - 600 034.
2.The Zonal Manager, M/s.Corporation Bank, Presently M/s.Union Bank of India, No.39, Whites Road, Royapettah, Chennai - 600 014.
3.M/s.Anu Engitech Pvt. Ltd., Rep. by its Director, No.50, Habibullah Road, T.Nagar, Chennai - 600 017
..Respondents
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W.P.No.10347 of 2021
Prayer:
Prayer: Writ Petition filed under Article 226 of the Constitution of India, seeking issuance of Writ of Mandamus directing the 1st respondent to cancel the memorandum of deposit of Title Deeds bearing No.152/2013 dated 18.01.2013 and No.4383/2015 dated 12.10.2015 on the file of the SRO, Anna Nagar and release the original Title Deeds kept in the Office of the 1st respondent.
For Petitioner : Mr.K.S.Vishwanath
For Respondents : Mr.K.Sarath Babu for R1 & R2
O R D E R
This Writ Petition has been filed for a direction, directing the 1st respondent to cancel the memorandum of deposit of Title Deeds registered as Document No.152/2013 dated 18.01.2013 and Document No.4383/2015
dated 12.10.2015 on the file of the SRO, Anna Nagar and release the original Title Deeds kept in the Office of the 1st respondent.
assistance from the 1st respondent. The petitioner's husband was one of the Directors of the 3rd respondent / Company while availing the loan. The 2/6
W.P.No.10347 of 2021
property stands in the name of the petitioner as well as her husband was mortgaged with the 1st respondent while availing loan by depositing the title
deeds. Thereafter, the petitioner's husband died and the petitioner made a request to substitute another property by releasing the property which was originally mortgaged with the 1st respondent while availing loan. Upon the said request, the 2nd respondent made a proposal dated 26.02.2021 to the 1st repondent. However, the 1st respondent did not accept the said proposal, since the property which is proposed to substitute is valued less than the value of the property which was originally mortgaged with the 1st respondent.
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W.P.No.10347 of 2021
Consequently, connected miscellaneous petition is closed.
26.06.2024
kkn
Internet:Yes/No Index:Yes/No Speaking/Non-speaking order Nuetral Citation : Yes / No
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W.P.No.10347 of 2021
To:-
1.M/s.Corporation Bank, Presently M/s.Union Bank of India, Represented by its Chief Manager / Authorised Officer,
Gee Gee Emerald, 1st Floor, 151, Village Road, Nungambakkam, Chennai - 600 034.
2.The Zonal Manager, M/s.Corporation Bank, Presently M/s.Union Bank of India, No.39, Whites Road, Royapettah, Chennai - 600 014.
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W.P.No.10347 of 2021
G.K.ILANTHIRAIYAN, J.
KKN
W.P.No. 10347 of 2021 and W.M.P.No. 10924 of 2021
26.06.2024
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3 issues framed by the court
Whether the High Court should direct the bank to release title deeds when the bank has initiated recovery proceedings under SARFAESI Act due to a swapped property having lower value.
Whether the bank is justified in refusing to release mortgaged title deeds after declaring the loan as non-performing asset and auctioning the property.
Whether confirmation letter issued under SRO rules preserves title deeds in the face of lender's statutory recovery powers.
2 provisions across 1 enactments
R.Bhuvaneshwari
M/s.Corporation Bank, Presently M/s.Union Bank of India
M/s.Anu Engitech Pvt. Ltd.
The Zonal Manager, M/s.Corporation Bank, Presently M/s.Union Bank of India
G.K.ILANTHIRAIYAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
