JUDGMENT

1. The petitioner no. 1 is a multi-system operator of cable television and is a subsidiary of Siti Networks Limited (for short, “Siti”). Siti holds 60 per cent equity shares in the petitioner no. 1. The petitioner no. 1 took term loan facilities from the respondent no. 3-Bank, namely the Axis Bank Limited. Subsequently, the petitioner no. 1 made full repayment of the said loan facilities by November 7, 2022. In spite of several reminders, the respondent no. 3-Bank did not issue a “No Dues” Certificate and/or release the securities in respect of the term loan/credit facilities. The securities primarily comprised of an immovable property and 29.99 per cent shares of petitioner no. 1 held by Siti, regarding which a pledge was executed by Siti in favour of the respondent no. 3-Bank.

2. The petitioners argue that upon the repayment of the entire term loan facilities, it was the incumbent duty of the Bank, in terms of the Sanction letter and agreement, to issue No Dues Certificate and return all the securities to the petitioners. However, the Bank takes shelter of Section 171 of the Contract Act, 1872 (hereinafter referred to as, “the 1872 Act”) to claim a general lien of bankers