STATE BANK OF INDIA Vs. THILAGAVATHI TRADERS

JUDGEMENT

(1.) This writ appeal has been directed against the impugned order dtd. 1/12/2021 passed in W.P.No.10970 of 2019, by which the prayer of the writ petitioner/first respondent herein to direct the first appellant herein to return the original documents of title relating to the property, being the vacant commercial site measuring 15511.71 sq.ft. at S.Nos.261 and 262 in Vellegoudampalayam Village, Dharmapuri Taluk, was allowed.

(2.) Learned counsel appearing for the appellants assailing the impugned order argued that the writ petitioner/first respondent herein had approached the Agri Commercial Branch of State Bank of India and availed credit facilities by way of overdraft to the tune of Rs.5.00 crores in the year 2014 by mortgaging its property, being the vacant commercial site measuring 15511.71 sq.ft. at S.Nos.261 and 262 in Vellegoudampalayam Village, Dharmapuri Taluk, to the first appellant/bank as security. The aforesaid property was shown as additional security for the loan obtained by PKB Feed Mills Private Limited and, therefore, the original documents of title relating to the aforesaid property ought not to have been directed to be returned to the first respondent, as the appellant/bank will not have any security to recover the huge amount of Rs.293.01 crores due and payable by the first respondent and its group concerns as on 31/12/2021.

(3.) It is further submitted by learned counsel for the appellants that even in the letter dtd. 16/8/2017 issued by the first appellant/bank to PKP Feed Mills Private Limited it has been categorically stated that the after payment of the entire amount under one-time settlement, the release of any secured property can be sought only upon payment of 125% of the assessed marked value of the property concerned, but this vital aspect has been overlooked by the learned Single Judge.