GOPALDAS ESTATES AND HOUSING Vs. INDUSIND BANK LIMITED

JUDGEMENT

(1.) This is a Suit for the grant of a mandatory injunction directing the Defendants to release and deliver to the Plaintiff the original Title Deeds in respect of land measuring 8.17 acres at Ardee City, Gurgaon. It is not in dispute that the Plaintiff had availed of various financial facilities and loans from the Defendant in connection with which this land was pledged to the Defendant as collateral. However, it also stands admitted that all dues against those financial transactions stand squared and fully paid up.

(2.) Learned counsel for the Defendant contends that the Plaintiff is holding a sum of Rs.3,00,00,000/- (Rupees Three Crores Only) by way of Security with regard to the Lease Agreement entered into between the parties. The Defendant is the Lessee of the Plaintiff. As per registered Lease Deed the aforementioned sum of Rs.3,00,00,000/- (Rupees Three Crores Only) had been furnished as a Security by the Defendant. The contention of learned counsel for the Defendant is that till such time as this Security remains in the hands of the Plaintiff, a right to retain the Title Deeds accrues in favour of the Defendant.

(3.) There are distinct transactions between the parties. The collateral of the land was given in respect of financial arrangements/loans extended by the Defendant to the Plaintiff. As soon as the outsandings connected with those transactions stand squared, there will be no justification for retaining possession of the Title Deeds which was offered as security for those loans.