Retention of mortgaged properties by a bank must align with contractual liabilities and RBI guidelines.

BASANT BALAJI J ======================

W.P. (C) No. 39699 of 2025 ========================

Dated 27^th day of February 2026 JUDGMENT The writ petition has been filed under Article 226 of the Constitution of India seeking the following reliefs:-

1. Declare that the respondent Bank is not entitled to retain or continue any mortgage, lien, or charge beyond the said limited contracted liability of the SBLC of Rs.4.5 Crores;

2. Issue a Writ of Certiorari or other appropriate writ, order, or direction quashing Exhibit P-9 communication dated 12.09.2025 issued by the Ist respondent declining release of the Kalamassery properties;

3. Issue a Writ of Mandamus or other appropriate writ, order, or direction directing the 1st respondent Bank to release the two mortgaged properties situated at Kalamassery, Ernakulam District and its title deeds and related documents to the petitioner within a time limit as stipulated by this Hon’ble Court, except the Thiruvananthapuram property, which alone may be retained to secure the limited liability of Rs.4.5 Crores under the pending O.S. proceedings.

4. Direct the respondents to pay an amount of Rs. 8,75,000/- as compensation as on 21.10.2025 and for further periods for illegally retaining the title deeds of the mortgaged properties situated in Ernakulam District in violation of RBI Master Circular dated 13.09.2023;

5. Direct the 1st respondent Bank to remove the NPA classification of the petitioner’s account in view of full repayment of all dues and issue “No Dues Certificate”;

and

6. Grant such other reliefs as this Hon’ble Court may deem fit and proper in the interests of justice.

2. An interim order was passed on 18.12.2025 directing the 1st respondent to release the title deeds in respect of two properties situated at Kalamassery to the petitioners, upon the petitioners making a cash deposit or creating a fixed deposit of equivalent amount with the Bank.

3. The learned counsel for the petitioners submits that the petitioners are prepared to remit a sum of Rs.4.5 crores immediately upon receipt of the funds. It is further submitted that, upon such deposit, the title deeds in respect of the two properties situated at Kalamassery may be released to the petitioners, while retaining the property situated at Thiruvananthapuram as the secured asset to safeguard the interest of the respondent Bank.

Taking note of the above submission, it is ordered that upon deposit of Rs.4.5 crores, either by way of cash remittance or by creating a fixed deposit of equivalent amount, the title deeds in respect of the properties situated at Kalamassery shall be released to the petitioners within a period of seven (7)

days from the date of such deposit.

With the above direction, this writ petition is disposed of.

Sd/-