Liability for collection charges hinges on Supreme Court's decision, necessitating security for the return of mortgaged documents.

JUDGMENT

Exts.P3 & P6 notices are under challenge in this writ petition. The petitioner had availed loan from the 1st respondent Corporation, which was repaid through 'One Time Settlement', as permitted by the Corporation. The impugned notices are issued demanding collection charges due with respect to revenue recovery steps initiated prior to settlement of the loan. Contention of the petitioner is that, no amount was recovered through the revenue recovery steps and the entire amount was paid directly to the 1st respondent Corporation. Hence it is contended that no collection charges is leviable. It is further contended that as per legal position remaining settled through decision of this court, no collection charge is leviable with respect to arrears due to the 1st respondent Corporation.

2. Learned Government Pleader appearing on behalf of respondents 3 & 4 points out that, the matter is now pending decision before the hon'ble Supreme Court in a batch of Special Leave Petitions filed by the Government.

3. Considering the factual situation emerging as above, it is evident that the liability for payment of collection charges will depend upon the final outcome of the decision on the point in the Special Leave Petitions pending before the hon'ble Supreme Court. Grievance of the petitioner is that, under the guise of the pendency of the demand for payment of collection charges, the 1st respondent Corporation is not returning the title deeds and other documents pertaining to the mortgaged property.

4. This court is of the opinion that, interest of justice can be achieved by directing the petitioner to furnish security with respect to the demand for collection charges, pending decision of the matter by the hon'ble Supreme Court, and to direct the 1st respondent Corporation to release the mortgage and to return the title documents on the basis of such security.

5. Therefore, this writ petition is disposed of by directing the petitioner to furnish Bank Guarantee with respect to the amount of `33,504 demanded under Exts.P3 and P6 before respondents 1 and 2. On furnishing such Bank Guarantee the respondents 1 and 2 shall release the mortgage and shall return the title documents of the property to the petitioner. Appropriation of the Bank Guarantee will depend upon the final outcome of the decision on the issue with respect to liability for payment of collection charges, which will be decided by the hon'ble Supreme Court in the Special Leave Petitions pending disposal. The respondents 3 and 4 will be entitled to realise the Bank Guarantee furnished, if ultimately it is decided that the petitioner is liable for payment of the collection charges. If the decision is otherwise, the respondents 1 and 2 shall release the Bank Guarantee to the petitioner.

6. Attachment of immovable property if any effected against the petitioner on the basis of the recovery steps initiated under Exts.P3 and P6, shall be lifted as and when it is noticed that the petitioner had furnished Bank Guarantee for the said amount, as directed above.