SHALINI Vs. KARUVANNUR SERVICE CO OPERATIVE BANK LTD

JUDGEMENT

(1.) Petitioner has approached this Court, being aggrieved by the fact that certain documents relating to the property mortgaged by the petitioner with the respondent bank, as security for a loan extended by the respondent bank to her friend (one Sobhana), has not been returned despite the fact that the said loan has been repaid in full.

(2.) Learned counsel appearing for the petitioner submits that the bank has no right to retain the title deeds of the property mortgaged, even after the loan is repaid in full. Learned counsel places reliance on the judgment of this Court in Lonankutty Antony V. Joint Registrar of Co-operative Societies, Ekm and Others [2016(2) KHC 505] to contend that retaining or withholding title deeds even after clearing of loan is per se illegal and arbitrary.

(3.) Learned counsel appearing for the respondent bank would submit that the aforesaid Sobhana has availed another loan from the respondent bank, which is in default and therefore, the property mortgaged by the petitioner is subject matter of a banker's lien and therefore, the documents relating to the property belonging to the petitioner cannot be released. He confirms that the petitioner's property has been mortgaged only for the purposes of securing repayment of the loan which has has already been repaid.