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High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P. JYOTHIMANI
Premier Plass Pack Limited Rep. by its Director
Versus
The Central Bank of India Rep. by its Executive Director & Another
Writ Petition No.35387 of 2007 and M.P.No.1 of 2007
Decided On : 18-12-2007
Original Documents - Recovery of Debts Due to Banks and Financial Institutions - [Section 19 of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993] - The court directed the second respondent to furnish certified/attested copies of the original documents and issue a public notice about the loss of the documents. It also made it clear that the petitioner could proceed against the second respondent for recovery of damages in case of any loss due to the missing documents.
Fact of the Case:
The petitioner, a partnership firm, availed credit facility from the second respondent-Bank and deposited original documents of title as security. After a one-time settlement, the second respondent failed to return the original documents, leading to the filing of the writ petition.
Finding of the Court:
The court found that the original documents were misplaced and not traceable, likely due to the multiple transfers of the suit between different courts. It directed the second respondent to provide certified/attested copies of the documents and issue a public notice about the loss.
Issues: Misplacement of original documents, failure to return documents after settlement, and the petitioner's request for indemnity in case of loss.
Ratio Decidendi: The court held that the second respondent should provide certified/attested copies of the original documents and issue a public notice about the loss. It also clarified that the petitioner could proceed against the second respondent for recovery of damages in case of any loss due to the missing documents.
Final Decision: The writ petition was disposed of with directions for the second respondent to furnish certified/attested copies of the original documents, issue a public notice about the loss, and allow the petitioner to proceed against the second respondent for recovery of damages in case of any loss due to the missing documents.
With consent of the learned counsel on either side, the writ petition itself is taken up for final disposal.
2. The petitioner-Company was originally a partnership-firm under the name and style of M/s.Premier Paper Products, in which P.Nagarajan, P.Ramamurthy and P.Rajarathinam were the partners. The said partnership firm has availed credit facility from the second respondent-Bank in the form of cash credit and term loans. While availing the said loans, the petitioner-firm has deposited the original documents of title pertaining to the properties situated at (a) 231 Pollachi Road, Coimbatore, (b) New No.35, D.B.Road, R.S.Puram, Coimbatore, and (c) New No.79, Venkataswamy Road, R.S.Puram Coimbatore. As per the affidavit the following 14 original documents have been entrusted with the second respondent by the petitioner which are as follows:-
S.No. Date Schedule / Description
1. 22.09.1899 Sale Deed executed by Thavanna Pillai in favour of Chinna Konan (Doc. No.1566/1899)
2. 18.09.1913 Mortgage deed executed by Chinna Konan which is discharged on 27.01.1989
3. 27.01.1918 Conveyance deed executed by Chinna Konan in favour of Rangaswami Konan
4. 28.01.1918 Mortgage deed executed by Rangasamy Konan
5. 19.03.1928 Conveyance deed executed by Rangasamy Konan to Sella Konan
6. 012. 1960 Agreement to sell the land to E.B.P.Haran by Sella Konan
7. 112. 1960 Sale Deed for conveying the land to Sri E.B.P.Haran, Smt. Kamalam, Sri P.Nagarajan and Sri. P.Ramamurthi
Doc. No.7032/1960)
8. 28.04.1935 Sale Deed executed by Municipal Council of Coimbatore in favour of Smt. Valliammal
9. 07.02.1935 Sale Deed executed by Valliammal in favour of E.B.P.Haran
10. 112. 1924 Sale Deed executed by Municipal Council of Coimbatore in favour of J.Srinivasa Pillai under Doc.No.4011 of 1924 in the office of the Registrar of Coimbatore.
11. 27.08.1925 Sale Deed executed by J.Srinivasa Pillai in favour of Krishnaswamy Pillai under Doc.No.3260 of 1925 in the office of the Registrar of Coimbatore
12. 07.05.1948 Agreement of deed executed by Sri.M.K.Surya Pratapam, Sri M.K.Rajaram, Sri M.K.Ganesan, Sri M.K.Seshan and Sri M.K.sampath, sons of M.Krishnaswamy Pillai and Smt. Kumudammal, and Smt. Rajammal wife of Sri.
K.Krishnaswamy Pillai in favour of Sri.K.M.Gopalakrishna Iyer, S/o.Mahadeva Jadavallaban for sale deed authorising Sri.M.K.Surya Pratapam to execute the deed of sale as Hindu Joint Family Member.
13. 17.05.1948 Sale Deed executed by Sri M.K.Surya Pratapam in favour of K.M.Gopalakrishna Iyer under Doc.No.1794 of 1948 in the office of the Registrar of Coimbatore.
14. 12.07.1956 Sale Deed executed by Sri K.M.Gopalakrishna Iyer in favour of Smt. Kamalam under Doc.No.3253 of 1956 in the office of the Registrar of Coimbatore.
3. The second respondent has filed a suit in O.S.No.454 of 1995 on the file of the learned Principal Subordinate Judge, Coimbatore, for recovery of the said loan amount. Consequent to the enactment of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the suit in O.S.No.454 of 1995 was transferred initially to the Debt Recovery Tribunal - I, Chennai, in T.A.No.1499 of 1998 and subsequently to the Debt Recovery Tribunal, Coimbatore, in T.A.No.1458 of 2002. It is due to the said litigations, a one-time settlement was arrived at between the parties as per the proceedings of the second respondent dated 21.07.2006 and the respondents agreed to receive a sum of Rs.450 lakhs together with interest detailed in the letter dated 21.07.2006 towards the full and final settlement of the entire claims. The second respondent by a latter dated 17.08.2006 has assured to deliver all the original documents as stated above on payment of Rs.450 lakhs subject to the following conditions:-
"a) Withdrawal of the case filed by the petitioner in W.P.No.11228 of 2005 on the file of the High Court, Madras.
b) And filing of a memo of satisfaction with the Debt Recovery Tribunal, Coimbatore, in T.A.No.1458 of 2002".
4. It
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