C VENKITUPATHI Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) Petitioner has availed Housing Loan for a sum of Rs.9,65,000/- from Central Bank of India, Kalapatti Branch, Coimbatore, the 1st respondent herein under Loan No.302478047, by mortgaging his property, bearing Site No.10, comprised in S.F.No.934/2, Kalapatti Village, Coimbatore. Not satisfied with the services of the first respondent bank, petitioner has approached Indian Bank, Peelamedu Branch for take over of the Housing Loan and also for grant of Cash Credit Facility.

(2.) Indian Bank, Peelamedu granted sanction for takeover of the Housing Loan and also granted in-principle sanction of the Cash Credit Limit, subject to the condition that the property document is taken from the first respondent bank and handed over to them. In order to facilitate closure and take over the Housing Loan, Indian Bank, paid balance outstanding of Rs.9.65 Lakhs to the first respondent.

(3.) Central Bank of India, Coimbatore, first respondent herein, vide letter dated 01.11.2011, informed Indian Bank, Peelamedu Branch that the property document was misplaced and that they are searching for the same. Therefore, Indian Bank, cancelled the sanction and demanded back Rs.9.65 Lakhs and petitioner was directed to pay interest for the interim period to Indian Bank. On 10.11.2011, the first respondent bank, revived the Housing Loan of the petitioner under a fresh account and also granted Cash Credit Facility of Rs.20 Lakhs, as sought for by the petitioner for his business requirement. First respondent bank, further refunded the sum of Rs.9.65 Lakhs to Indian bank on 13.12.2011.