2016 Supreme(UK) 207
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
U.C. Dhyani, J.
Meetu Jain & another - Petitioners
Vs.
Bank of Baroda & another - Respondents
Writ Petition No.2524 of 2015 (M/S)
Decided On : 01-03-2016
For the Petitioners:Mr. Piyush Garg, Advocate.
For the Respondents:Mr. Siddhartha Sah, Advocate.
Headnote:Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Sec. 2(zc) - Property documents - Not released - Validity - Held - Since entire loan was repaid for which the alleged property was mortgaged - Bank had no right to retain its documents - Petition, allowed.
(Paras 10, 11, 19 and 20)
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U.C. Dhyani, J.
1. By means of present writ petition, the petitioners seek following relief, among others:-
“Issue a writ, order or direction in the nature of mandamus commanding the respondents to return the title deeds and other connected documents relating to Plot No.A-7 Industrial Estate, Kashipur, which are in possession of respondent no.1 under mortgage for loan bearing No. 0850500000571.”
2. It is the case of the petitioners that firm M/s Mahaveer Packaging Industries, of which the petitioner no.1 is the proprietor, obtained loan facility from respondent no.1-bank under three heads, viz., Cash Credit Limit, Term Loan-I and Term Loan-II. To secure the said loan obtained by the petitioners from the respondent no.1, a mortgage was created over the land/plot situated at A-7, Industrial Estate, Kashipur having 2422 Sq. Yds area. The said property is in the name of petitioner no.2. However, there is a lease deed executed by petitioner no.2 in favour of petitioner no.1 in respect of the said property. Further, a house measuring 142.27 sq.mts. situated at Mohalla Singhan, Kashipur in the name of one Mr. Amit Kumar Jain was also mortgaged. The original title deeds of both the aforesaid properties and other lease deeds were deposited with respondent no.1 at the time of obtaining loan facilities.
3. Subsequently, one of the collateral securities submitted for securing mortgage was revised in a way that the property situated at Plot No. A-7, Industrial Estate Kashipur remains as such. However, earlier mortgage property (i.e. house at Mohalla Singhan, Kashipur) belonging to Amit Kumar Jain was replaced with a property belonging to Rajat Kumar Jain as property situated in Mohalla Singhan measuring 972 sq.ft.
4. The details of the property mortgaged after such revised security are as follows:
(i) A house admeasuring area 972 sq. metres situated at Moh. Singhan, Kashipur in the name of Rajat Jain.
(ii) Industrial land and building situated at A-7, Industrial Area, Kashipur having area 2422 sq. yards (2025.84 sq. mt.) standing in the name of Pushpendra Jain leased out to Smt. Meetu Jain.
The description of title deeds/documents of the property mortgaged with the bank in respect of property belonging to Mr. Rajat Jain is as follows:
(i) Original Title deed dated 20.4.2012 registered on at bahi no. 1, page on 281/294, serial no.4889 in the office of Sub Registrar, Kashipur
(ii) Original Sale deed dated 21.09.2013 vide Bahi No. 1, Jild No. 546, pages No. 25, 26 and Sr. No. 2157, registered on 21.09.1983 in the office of Sub Registrar, Kashipur
(iii) Copy of demand and collector register dated 11.3.2010, 22.01.2010 and 07.05.2012
(iv) Copy of will dated 14.3.1995
(v) Mustehari fee receipt dt. 07.05.2012
5. The description of title deeds/documents of the property deposited with the bank in respect of property belonging to Pushpendra Kr. Jain leased out to Smt. Meetu Jain is as follows:
(i) Original lease deed dated 11.09.1978 registered vide book no.1, Zild 411 page no.199 to 234 Sr. No. 7 at Sub Registrar, Kashipur registered on 09.01.1979 in favour of Pushpendra Kr. Jain.
(ii) Transfer agreement deed dated 19.04.1999 registered vide book no.1, zild 1036, page no.475 to 486 Sr. No.1227 at Sub Registrar, Kashipur registered on 20.4.1999
(iii) Copy of lease deed dated 14.11.2008 registered vide book no.1, Zild No.1641, page No. 53 to 62 Sr. No.7472 at Sub Registrar, Kashipur pertaining to 7000 sq. feet area rented out of plot no.A-7 to Smt. Meetu Jain.
6. The aforesaid loan was taken in respect of the firm M/s Mahaveer Packaging Industries and only the present petitioners were the borrowers/guarantors for the said loan. Aforementioned properties were mortgaged as collateral securities only for the purpose of securing the loan in question and none other. The charge over these properties was created only in respect of the aforesaid loan.
7. Apart from this, one loan was being obtained by M/s Teerath Pushpdant Private Limited Company, in which, petitione