RAJ KUMAR AND ORS. Vs. SYNDICATE BANK

JUDGEMENT

(1.) The petition seeks a mandamus to the respondent Syndicate Bank (Bank) to release the title documents of property bearing plot no.3490, Block -C, Green Field Colony, Faridabad deposited by the petitioner to secure re -payment by the petitioners of the dues of the cash credit limit availed of by the petitioners in the name of petitioner no.2 M/s. ACE Exports of which petitioner no.1 is the sole proprietor.

(2.) It is the admitted position that the petitioner no.1 is also a guarantor of the advances made by the respondent Bank to one M/s. K.B. International and Sh. Dayanand Basoya and which advances according to the respondent Bank are still outstanding. It has also come on record that the respondent Bank had invoked the guarantee admittedly given by the petitioner for the dues of M/s. K.B. International and Shri Dayanand Basoya and instituted proceedings before the Debt Recovery Tribunal (DRT) for recovery and in which though a settlement was arrived at, but has not been honoured.

(3.) The contention of the counsel for the petitioners is that the petitioners had deposited the aforesaid title deeds to create equitable mortgage of the property only to secure the dues in the account of M/s. Ace Exports and not as a guarantor for the dues of M/s. K.B. International. It is argued that the security given for dues in one account cannot be utilised for dues of another account.