C.R. RAMACHARY Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) Heard the learned counsel for the petitioners and the learned counsel for the respondent bank.

(2.) The admitted facts are that the petitioners had obtained three separate loans from the respondent bank. Two of the loan accounts were settled, however, the third loan account was not settled. When the first petitioner approached the respondent bank to release the documents in relation to the properties mortgaged in relation to the loans which were already settled, the respondent bank, by letter dated 4.8.2017, refused to return the documents. The respondent bank refused to return the documents on the ground that the first petitioner had obtained another loan as Sole Proprietor of M/s.Babu Dresses (second petitioner) from the respondent bank and he had not repaid the said loan amount and committed default. This loan account was declared as Non Performing Asset (NPA) and, hence, the respondent bank had filed a suit for recovery before the Debts Recovery Tribunal being O.A.No.434 of 2017. In the letter dated 4.8.2017, it is further stated that since the first petitioner was liable to pay substantial amount to the bank, the bank has exercised its general lien over the properties mortgaged by the first petitioner and, hence, the bank was not in a position to release the collateral security mortgaged by the first petitioner until the closure of all loans availed by him and, hence, the request of the first petitioner was rejected. Being aggrieved by this communication dated 4.8.2017, the present petition has been preferred by the petitioner.

(3.) The learned counsel for the petitioners submitted that it is an admitted fact that the earlier two loan accounts were settled and only the third loan account which is to the tune of Rs. 63 lakhs was declared as Non Performing Asset (NPA). He submitted that sufficient collateral security, i.e., seven items which are stated in Schedules 'A' and 'B' to the Original Application, was furnished in relation to the third loan of Rs. 63 lakhs.