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2017 Supreme(Online)(KER) 22997
HIGH COURT OF KERALA
P. B. Suresh Kumar, J
JOSEPH K S – Appellant
Versus
THE ASSISTANT GENERAL MANAGER – Respondent
WRIT PETITION (CIVIL) 17497/2017
A mortgagor can secure the release of property titles by offering cash security when no extended liabilities exist.
Headnote:
Mortgage - Chitty - Kerala State Financial Enterprises Act - Section on Liabilities - The court directed the KSFE to release title deeds after cash security was offered due to no extended liabilities discovered.
Fact of the Case:
The petitioners mortgaged properties as security for a chitty prize and sought release of their titles after offering cash security, claiming the balance liability was only Rs.80,000 against a property value of Rs.90 lakhs.
Finding of the Court:
The court found that the KSFE had no justification to withhold the title deeds since the mortgaged liability was not extended to other liabilities, and the petitioners complied by offering cash security.
Issues: Whether the KSFE is justified in withholding the title deeds when the mortgaged liability has not been extended to other liabilities.
Ratio Decidendi: The absence of extended liabilities allows the petitioners to secure the release of title deeds as they offered adequate cash security.
Final Decision: The KSFE must release the title deeds upon acceptance of cash security within one week.
JUDGMENT
The third petitioner is the prized chittal of a chitty run by the Kerala State Financial Enterprises Limited ('the KSFE'). Petitioners 1 and 2 have mortgaged two different properties owned by them by way of security to enable the third petitioner to receive the prize money of the chitty. It is stated that the balance liability in respect of the chitty is only about Rs.80,000/-. According to the petitioners, the properties mortgaged by petitioners 1 and 2 is worth about Rs.90 lakhs and therefore, they have approached the concerned branch of the KSFE and sought release of the security, offering cash security for the liability. It is stated by the petitioners that the KSFE is not considering the said request. The petitioners, therefore, seek appropriate directions in this regard, in this writ petition.
2. The learned Standing Counsel for the KSFE, on instructions, submits that the liability of the prized chitty of the third petitioner is only about Rs.80,000/- as stated by the petitioners and that the documents have not been released as the KSFE is ascertaining whether the petitioners have any other liability in the other branches of the KSFE. It is, however, conceded by the learned Standing Counsel for the KSFE that the mortgage created by petitioners 1 and 2 in respect of the chitty of the third petitioner has not been extended to any other liability. If the mortgage created by petitioners 1 and 2 has not been extended to any other liability, I do not think that there is any justification in withholding the title deeds when the petitioners have offered cash security for the liability. The writ petition, in the circumstances, is disposed of directing the concerned branch of the KSFE to release the title deeds deposited by petitioners 1 and 2 after accepting cash security for the liability. This shall be done within a week from the date of receipt of a copy of the judgment.
