Petition seeking to release loan papers, security title deeds and other documents obtained towards the loan covered by Ext.P3 settlement

A petitioner, who runs a business, filed a writ petition requesting the release of loan documents and security title deeds from Syndicate Bank. The petitioner had taken a loan in 2006 and faced SARFAESI proceedings. Despite making substantial payments and reaching a One Time Settlement (OTS) agreement, the bank recalled the OTS. A subsequent settlement was agreed upon, and the petitioner made several payments towards it. The court's judgement addresses the petitioner's plea for the return of their documents.

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT

THE HONOURABLE MR.JUSTICE N.NAGARESH

MONDAY, THE 26TH DAY OF APRIL 2021/6TH VAISAKHA, 1943

WP(C).No.12538 OF 2020(N)

PETITIONER:

A.V.PRASANTH, AGED 47 YEARS,
S/O.K.APPUKUTTAN NAIR MANGALASSERY,
KALATHARA VEEDU, OHM NAGAR,
MANIKANDESWARAM P.O.,
THIRUVANANTHAPURAM.
BY ADV. SRI.T.M.ABDUL LATHEEF

RESPONDENTS:

1 SYNDICATE BANK REPRESENTED BY
SENIOR MANAGER, HEAD OFFICE MANIPAL,
KARNATAKA, PIN-576 104.

2 MANAGER, SYNDICATE BANK,
SASTHAMANGALAM, ARMB,
THIRUVANANTHAPURAM, PIN-695 010.

3 BRANCH MANAGER, SYNDICATE BANK,
ASSET RECOVERY MANAGEMENT BRANCH,
ERNAKULAM, PIN-682 018.

ADDL.4 B.S.VASANTHI, AGED 72 YEARS,
W/O. K. APPUKUTTAN NAIR, MANGALASSERY,
KALATHARA VEEDU, OHM NAGAR,
MANIKANTESWARAM P.O.,
THIRUVANANTHAPURAM.

(ADDITIONAL R4 IS IMPLEADED AS PER ORDER DATED
16/10/2020 IN IA 01/2020)

R1-R3 BY ADV. SRI.R.S.KALKURA
R4 BY ADV. K.RAMAKUMAR (SR.)
R4 BY ADV. SRI.T.RAMPRASAD UNNI
R4 BY ADV. SRI.S.M.PRASANTH
R4 BY ADV. SRI.G.RENJITH
R4 BY ADV. SMT.R.S.ASWINI SANKAR
R4 BY ADV. SRI.T.H.ARAVIND

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 26-04-2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

J U D G M E N T

Dated this the 26th day of April, 2021

The petitioner, who is running a proprietary business in construction, hardware and paint materials, has filed this writ petition seeking to command respondents 1 to 3 to immediately release loan papers, security title deeds and other documents obtained towards the loan covered by Ext.P3 settlement. Incidental reliefs are also sought for.

2. The petitioner states that the 2nd respondent- Manager, Syndicate Bank, Sasthamangalam Branch provideda term loan facility of ₹90 lakhs to the petitioner on 30.10.2006. SARFAESI proceedings were initiated by the Bank against the petitioner. The petitioner filed WP(C) No.28398/2011 when Section 14 was invoked. This Court granted 10 EMIs to discharge the liability of about ₹100 lakhs.

Though the petitioner made substantial remittances, on making a default, the Bank recalled the One Time Settlement facility on 18.03.2017.

3. The Bank then filed O.A. No.440/2017 in the DRT, Ernakulam for realisation of dues. The petitioner would submit that during the interregnum, he had brought down the outstanding to ₹25 lakhs even as per the bank statement. But, the Bank brought up the amount to ₹55 lakhs soon. By18.03.2017, when OTS offer was withdrawn by the Bank, the petitioner had remitted more than ₹100 lakhs.

4. The Bank again permitted the petitioner to settle the liability for a total amount of ₹35,50,000/- as per Ext.P3 dated 15.01.2020. Towards this settlement, the petitioner paid 5,50,000/- on 15.01.2020 itself as is evident from Ext.P4. Thereafter, ₹18 lakhs was paid on 11.03.2020 and ₹7.5 lakhs on 20.03.2020. Another ₹4,50,000/- was transferred to the Bank on 20.03.2020.

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