Back
2026 Supreme(Online)(Tel) 14030
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Renuka Yara, J
Kalali Betha Gaud – Appellant
Versus
The State Bank of India – Respondent
WRIT PETITION No.32124 of 2025
For the Appellants/Petitioners: B. Shirisha
For the Respondents: B. Hari Prasad
Once a loan is fully repaid and the account is closed, the financial institution is legally obligated to return the original security documents and execute a release deed in favor of the borrower.
Headnote:(A) Banking Law - Loan Repayment - Return of Securities - Once loan accounts are closed and settled, the bank is obligated to return original title deeds and execute a release deed in favor of the borrower. (Para 4, 5)
(B) Writ Jurisdiction - Mandamus - Failure to release documents - The action of a bank in withholding original title documents after the full repayment of the loan is arbitrary and warrants a direction for their immediate release. (Para 2, 5)
Issues: Whether the respondents are liable to return the original title deeds and execute a release deed after the loan amounts have been repaid and accounts closed.
| Table of Content |
|---|
| 1. petitioner seeks a writ of mandamus for the return of mortgaged title deeds and execution of a release deed following loan repayment. (Para 1 , 2 , 3) |
| 2. the bank admits the closure of loan accounts and expresses no objection to the release of documents. (Para 4) |
| 3. the court directs the bank to return original documents and execute the release deed as the loan is settled. (Para 5 , 6) |
ORDER:
Heard Ms. B. Shirisha, learned counsel for the petitioner and Sri B. Hari Prasad, learned Standing Counsel for State Bank of India (‘SBI’) for respondents.
2. The writ petition is filed with the following prayer:
“…to issue an appropriate Writ, Order, or Direction, more particularly one in the nature of a Writ of Mandamus, declaring the action of the respondents, more particularly one in nature of a Writ of Mandamus, declaring the action of the respondents, more particularly respondent No.1, in not furnishing the petitioner’s loan documents and statements, in not returning his original title deeds and pattadar passbooks, and in failing to execute a release deed in respect of the mortgaged agricultural land admeasuring Ac.11.35 guntas in Sy.Nos.698, 721, and 1052 of Dakoor Village, Andole Mandal, Sangareddy District, which was mortgaged under Document No.189 of 2009, dated 22.01.2009, as security for two agricultural loans namely (i) A/c No.62090679458 for 2,00,000/- sanctioned on 31.01.2009 (Crop Loan) and (ii) A/c No.62093979754 for 3,00,000/- sanctioned on 14.03.2009 (Agricultural Term Loan); and despite the said loan amounts having been substantially repaid and settled, Further, respondent No.1 fraudulently fabricated a fictitious loan account No.62123940557 for 2,25,000/- in the petitioner’s name to conceal the loss of his original title documents, as illegal, arbitrary, unreasonable, mala fide, and violative of Articles 14, 19 (1) (g), and 300- A of the Constitution of India; and consequently declare and cancel the alleged third loan account No.62123940557 for Rs.2,25,000/- as fictitious and void, and further direct the respondents to furnish all loan-related documents, return all original title deeds and pattadar passbooks of the petitioner, and execute a registered release deed in respect of the mortgaged property and pass such other order or orders…”
3. Learned counsel for the petitioner submits that the petitioner has taken loan of Rs.5,00,000/- from respondents-Bank and repaid the same. In spite of such repayment, the respondents have not released the documents consisting of title deeds and pattadar passbooks of agricultural land admeasuring Ac.11.35 guntas in Sy.Nos.698, 721, and 1052 of Dakoor Village, Andole Mandal, Sangareddy District, which was mortgaged under Document No.189 of 2009, dated 22.01.2009.
4. Learned counsel for the respondents submits that all the loan accounts pertaining to the petitioner are closed and therefore, the respondents have no objection to release the documents, subject to the petitioner executing release deed.
5. Since there is no objection to the respondents to execute the release deed, the petitioner is granted the relief prayed for. The respondents are directed to return the original title deeds and pattadar passbooks and to execute a release deed in respect of the mortgaged agricultural land admeasuring Ac.11.35 guntas in Sy.Nos.698, 721, and 1052 of Dakoor Village, Andole Mandal, Sangareddy District, which was mortgaged under Document No.189 of 2009, dated 22.01.2009.
6. With the above, the writ petition is allowed. There shall be no order as to costs. Miscellaneous applications, if any, pending shall stand closed.
