INDIAN OVERSEAS BANK Vs. P.S. BAWA

JUDGEMENT

(1.) APPELLANT Bank which was the Opposite Party before the State Commission has filed this Appeal against the judgment and order dated 13.04.07 passed by the State Consumer Disputes Redressal Commission, Delhi (in short, 'the State Commission ') in Complaint Case No. C -257/1997 whereby the State Commission while allowing the complaint filed by the complainant/Respondent No.1 has directed the Appellant Bank to return all the documents furnished by the Respondent No.1 as guarantor to the credit facilities availed by the Respondent No.2, along with Rs.10,000/ - as costs of litigation within a period of one month.

(2.) BRIEFLY stated the facts of the case are that the Appellant Bank extended credit facilities of Rs.22 lakhs to the Respondent No.2 on 8.3.94. Complainant/Respondent No.1 stood guarantee for repayment of loan and mortgaged his plot measuring 4742 sq. yards, Khasra No.201/7, Khatta No.3234 situated in Village Mirazpur, Ghaziabad, UP as a collateral security. He deposited the title deed with the Bank. Sum of Rs.5.5 lakhs was disbursed to the Respondent No.2. Respondent No.1 vide his letter dated 16.04.94 sought to withdraw the guarantee given by him and requested the Appellant Bank to absolve him from the obligation and return the title deed of the mortgaged property as Respondent No.2 was involved in a fraud case. In response to the said letter, Appellant wrote a letter dated 10.06.94 to the Respondent No.1 expressing its inability to return the title deed till the account is adjusted/settled. Respondent No.1 was also informed by the Appellant that they had taken up the matter with the borrower and in the meantime the account having balance of Rs.5,28,850.20 as on 10.06.94 was blocked.

(3.) DURING the pendency of the proceedings before the Debt Recovery Tribunal, Delhi, Complainant filed the complaint before the State Commission seeking return of the titles papers of the mortgaged property along with compensation of Rs.20 lakhs.