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High Court of KeralaSingle JudgePetitions partly allowed; title deeds to be rel...

In the High Court of Kerala at Ernakulam – Ravindran K.M. v. State of Kerala and Others; Remesan K.K. v. State of Kerala and Others; Rajendran M.S. v. State of Kerala and Others; Anil E.K. v. State of Kerala and Others (WP(C).11065/2019 and connected cases; 11069/2019; 11222/2019; 11270/2019)

Case / Petition Number:WP(C).11065/2019; WP(C).11069/2019; WP(C).11222/2019; WP(C).11270/2019 (connected cases)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Devan Ramachandran
Judgment Date
2019-04-11
Court Decision / Holding
Writ petitions allowed in part. The competent authority of Ernakulam District Co-operative Bank is directed to return the title documents to the Mulanthuruthy Housing Co-operative Society upon the Society’s request with a resolution within two weeks. Once received by the Society, the documents shall be handed to the petitioners, after obtaining receipts, within one week thereafter and without delay.
Final Disposition
Petitions partly allowed; title deeds to be released to petitioners via Primary Society within specified timelines.

Parties to the Case

Appellants / Petitioners

  • Ravindran K.M.
  • Remesan K.K.
  • Rajendran M.S.
  • Anil E.K.

Respondents

  • State of Kerala represented by the Secretary to Government, Department of Cooperation, Government Secretariat, Thiruvananthapuram, Pin 695001
  • The Registrar of Co-operative Societies, Thiruvananthapuram
  • Mulanthuruthy Housing Co-operative Society Limited, No.E304, Mulanthuruthy, Ernakulam, PIN 682314, represented by its Secretary
  • The Administrator, Mulanthuruthy Housing Co-operative Society Limited, No.E304, Mulanthuruthy, Ernakulam, PIN 682314
  • General Manager, Ernakulam District Co-operative Bank Limited, Head Office, Kakkanad, Ernakulam-682030
  • Manager, Ernakulam District Co-operative Bank Limited, Mulanthuruthy Branch, Chottanikara, Mulanthuruthy Road, Pallithazham, Ernakulam-682314

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri S.R. Sreejith

Counsels for Respondents

  • • Sri M.M. Monaye
  • • Sri N. Raghuraj
  • • Sri C.S. Sheeja- SR.GP

Case Synopsis & Summary

These writ petitions, heard together in the High Court of Kerala, challenge the refusal of the Ernakulam District Co-operative Bank to release title documents deposited with it in connection with loans advanced by the Mulanthuruthy Housing Co-operative Society. The petitions, filed by members who had fully repaid their loan liabilities, allege that the title deeds to their land and properties remain with the bank or the Primary Society due to a refinance arrangement. The Advocate for the bank argued that the title documents were deposited under a refinance agreement and could be retained until the primary borrower’s liability is fully settled. The government pleader noted that the transactions involve a Primary Society, its members, and a District Bank, with no direct official role unless complaints arise. The Court, citing a Division Bench decision in Managing Director, Kerala State Co-operative Housing Federation v. Leela Isaac and Others (2017 (2) KHC 535), held that once the principal borrower pays off the entire liability to the District Co-operative Bank, the lender cannot retain the title documents, notwithstanding any separate agreement. Consequently, the Court directed the Bank to return the title documents to the Primary Society within two weeks of a resolution request, and the Society to hand them to petitioners within one week of receipt.

Provisions of Law Cited

Legal Doctrines & Maxims

  • Once the principal borrower pays off the entire liability to the District Co-operative Bank, the title documents cannot be retained by the bank, even where refinance or inter-creditor arrangements exist. This principle is anchored on the enunciations in the cited Leela Isaac judgment and applied to hold that title deeds must be released upon full repayment.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners submitted that they have fully paid their loan liabilities to the Primary Society, which in turn repaid the Bank, and urged immediate release of their title documents by the District Bank to the Primary Society for transfer to the petitioners, with receipts. They argued the refinance arrangement cannot justify continuing retention of documents after full payment.

Contentions of Respondents

The Respondents contended that the transactions involve a Primary Society and a District Bank; official respondents have no role unless a specific complaint is brought; the Bank argued that possession of the title documents is part of the refinance agreement and should not be released until liabilities are fully settled by the primary borrower or under the law. The Bank did acknowledge the petitioners may have paid their liability but still asserted retention rights under the refinance agreement.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Managing Director, Kerala State Co-operative Housing Federation v. Leela Isaac and Others2017 (2) KHC 535PositiveThe court cites and applies the principle from this Division Bench judgment that when the principal borrower pays off the liability to the District Co-operative Bank, title documents must be released; this supports the petitioners’ entitlement to release of documents.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 11TH DAY OF APRIL 2019 / 21ST CHAITHRA, 1941** ## **WP(C).No. 11065 of 2019** ## **PETITIONER:** **RAVINDRAN K.M., AGED 46 YEARS S/O.KRISHNANKUTTY NAIR, MALLACKAL HOUSE, UDAYAMPERUR P.O., MANAKKUNNAM VILLAGE, UDAYAMPERUR DESOM, KANAYANNUR TALUK, ERNAKULAM DISTRICT.** ## **BY ADV. SRI.S.R.SREEJITH** ## **RESPONDENTS:** |**1**|**STATE OF KERALA, REPRESENTED BY THE SECRETARY**| |---|---| ||**TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, GOVERNMENT**| ||**SECRETARIAT, THIRUVANANTHAPURAM,**| ||**PIN-695001.**| |**2**|**THE REGISTRAR OF CO-OPERATIVE SOCIETIES,**| ||**THIRUVANANTHAPURAM.**| |**3**|**MULANTHURUTHY HOUSING CO-OPERATIVE SOCIETY**| ||**LIMITED NO.E304, MULANTHURUTHY, ERNAKULAM, PIN-**| ||**682314, REPRESENTED BY ITS SECRETARY.**| |**4**|**THE ADMINISTRATOR, MULANTHURUTHY HOUSING CO-OPERATIVE**| ||**SOCIETY LIMITED NO.E304, MULANTHURUTHY, ERNAKULAM,**| ||**PIN-682314.**| |**5**|**GENERAL MANAGER, ERNAKULAM CO-OPERATIVE BANK LIMITED,**| ||**HEAD OFFICE, KAKKANAD, ERNAKULAM-682030.**| WPC 11065/19 & con. Cases 2 **6 MANAGER, ERNAKULAM DISTRICT CO-OPERATIVE BANK LIMITED, MULANTHURUTHY BRANCH, CHOTTANIKKARA, MULANTHURUTHY ROAD, PALLITHAZHAM, ERNAKULAM-682314.** **BY SRI.M.M.MONAYE BY SRI.N.RAGHURAJ BY SMT.C.S.SHEEJA-SR.GP** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.04.2019 ALONG WITH WP(C).11069/2019, WP(C).11222/2019, WP(C).11270/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 11065/19 & con. Cases 3 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN THURSDAY, THE 11TH DAY OF APRIL 2019 / 21ST CHAITHRA, 1941 WP(C).No. 11069 of 2019** ## **PETITIONER:** **RAJENDRAN M.S., AGED 50 YEARS, S/O. SREEDHARAN NAIR, MYALILPUTHENPURAYIL HOUSE, MULANTHURUTHY VILLAGE, PERINGARPILLY, ERNAKULAM DISTRICT.** **BY ADV. SRI.S.R.SREEJITH** ## **RESPONDENTS:** - **1 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF C-OPERATION, GOVERNMENT SECRETRIAT, THIRUVANANTHAPURAM, PIN 695 001** **2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM, PIN 695 001** - **3 MULANTHURUTHY HOUSING CO-OPERATIVE SOCIETY LIMITED, NO. E304, MULANTHURUTHY, ERNAKULAM, PIN 682 314, REPRESENTED BY ITS SECRETARY.** - **4 THE ADMINISTRATOR, MULANTHURUTHY HOUSING COOPERTIVE SOCIETY LIMITED, NO. E 304, MULANTHURUTHY, ERNAKULAM, PIN 682 314** WPC 11065/19 & con. Cases 4 |**5**|**GENERAL MANAGER, ERNAKULAM DISTRICT CO-**| |---|---| ||**OPERATIVE BANK LIMITED, HEAD OFFICE,**| ||**KAKKAND, ERNAKULAM 682 030**| |**6**|**MANAGER, ERNAKULAM DISTRICT CO-OPERATIVE BANK**| ||**LIMITED, MULANTHURUTHY BRANCH, CHOTTANIKKARA,**| ||**MULANTHURUTHY ROAD, PALLITHAZHAM, ERNAKULAM 682314**| ||**BY SRI.M.M.MONAYE**| ||**BY SRI.N.RAGHURAJ**| ||**BY SMT.C.S.SHEEJA-SR.GP**| **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.04.2019 ALONG WITH WP(C).11270/2019, WP(C).11222/2019, WP(C).11065/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 11065/19 & con. Cases 5 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 11TH DAY OF APRIL 2019 / 21ST CHAITHRA, 1941 WP(C).No. 11222 of 2019** ## **PETITIONERS:** - **1 REMESAN K.K., AGED 64 YEARS, S/O.KUTTIKRISHNAN, KALLARAYIL HOUSE, MANAMKUNNAM VILLAGE, NADAKKAVU P.O., UDAYAMPEROOR, ERNAKULAM.** - **2 RAJEESH K.R., S/O.REMESAN, KALLARAYIL HOUSE, MANAMKUNNAM VILLAGE, NADAKKAVU P.O., UDAYAMPEROOR, ERNAKULAM. BY ADV. SRI.S.R.SREEJITH** ## **RESPONDENTS:** - **1 STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN-695001.** - **2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM.** - **3 MULANTHURUTHY HOUSING CO-OPERATIVE SOCIETY LIMITED NO.E304, MULANTHURUTHY, ERNAKULAM, PIN-682314, REPRESENTED BY ITS SECRETARY.** WPC 11065/19 & con. Cases 6 - **4 THE ADMINISTRATOR, MULANTHURUTHY HOUSING COOPERATIVE SOCIETY LIMITED NO.E304, MULANTHURUTHY, ERNAKULAM, PIN-682314.** - **5 GENERAL MANAGER, ERNAKULAM DISTRICT COOPERATIVE BANK LIMITED, HEAD OFFICE, KAKKANAD, ERNAKULAM-682030.** - **6 MANAGER, ERNAKULAM DISTRICT CO-OPERATIVE BANK LIMITED, MULANTHURUTHY BRANCH, CHOTTANIKKARA, MULANTHURUTHY ROAD, PALLITHAZHAM, ERNAKULAM-682314.** **BY SRI.M.M.MONAYE BY SRI.N.RAGHURAJ BY SMT.C.S.SHEEJA-SR.GP** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.04.2019 ALONG WITH WP(C).11270/2019, WP(C).11069/2019, WP(C).11065/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 11065/19 & con. Cases 7 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN** **THURSDAY, THE 11TH DAY OF APRIL 2019 / 21ST CHAITHRA, 1941 WP(C).No. 11270 of 2019** ## **PETITIONER:** **ANIL.E.K., AGED 39 YEARS, S/O KUNJUKUNJU, ELAVANAKANDATHIL HOUSE, MULANTHURUTHY VILLAGE, ARAKUNNAM, ERNAKULAM DISTRICT** **BY ADV. SRI.S.R.SREEJITH** ## **RESPONDENTS:** **1 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695 001 2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPURAM, PIN - 695** - **3 MULANTHURUTHY HOUSING CO-OPERATIVE SOCIETY LIMITED NO.E304, MULANTHURUTHY, ERNAKULAM, PIN - 682 314, REPRESENTED BY ITS SECRETARY** - **4 THE ADMINISTRATOR, MULANTHURUTHY HOUSING CO-OPERATIVE SOCIETY LIMITED, NO.E304, MULANTHURUTHY, ERNAKULAM, PIN - 682 314** WPC 11065/19 & con. Cases 8 **5 GENERAL MANAGER, ERNAKULAM DISTRICT CO-OPERATIVE BANK LIMITED, HEAD OFFICE, KAKKANAD, ERNAKULAM - 682 030 6 MANAGER, ERNAKULAM DISTRICT CO-OPERATIVE BANK LIMITED, MULANTHURUTHY BRANCH, CHOTTANIKKARA, MULANTHURUTHY ROAD, PALLITHAZHAM, ERNAKULAM - 682 314 BY SRI.M.M.MONAYE BY SRI.N.RAGHURAJ BY SMT.C.S.SHEEJA - SR.GP** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.04.2019 ALONG WITH WP(C).11222/2019, WP(C).11069/2019, WP(C).11065/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WPC 11065/19 & con. Cases 9 ## **JUDGMENT** I am considering these cases together, since the constitutive issues involved herein are analogues to each other, even though the parties are different. 2. Compendiously stated, the sole issue in this case is whether the petitioners, who are stated to be the members of the Mulanthuruthy Housing Co-operative Society, which is a Primary Society and who had availed of certain loans from the said Society, by equitably mortgaging their immovable properties, are entitled to receive back its title documents, after the entire loan liability had been paid off by them. 3. At first glance, there can be no difficulty in finding an answer to this, but the twist in the tale, to employ a figure of speech, is that the Primary Society had obtained refinance from the respondent - District Co-operative Bank, through an agreement between them, whereunder the individual documents of the petitioners had been agreed to be entrusted by the said Society to the Co-operative Bank, under an alleged condition that the same will be returned only after the Primary Society pays off their liability to the WPC 11065/19 & con. Cases 10 Bank. 4. At the crux of all the averments, contentions and allegations in these writ petitions, is the vehement assertion of the petitioners that they have all paid off the full liability in their loan accounts to the Primary Society concerned, but that the District Co-operative Bank is still refusing to release their documents. They, therefore, pray that apposite directions be issued to the Primary Society concerned to obtain release of their title documents from the District Co-operative Bank, without any further delay and deliver it to them. 5. In answer to the afore prayers made by the petitioners, Sri.N.Raghuraj, the learned counsel appearing for the Ernakulam District Co-operative Bank Ltd. submits that his client had refinanced the Primary Society, namely Mulanthuruthy Housing Co-operative Society Ltd; and that under an agreement between them, the title documents of the petitioners have been deposited with them by the said Primary Society. He says that the Primary Society has committed default of their obligations under the refinance agreement and therefore, that his client is entitled to hold on to the title documents, until the entire liability is paid off in full or settled, according to law, by the said Society. He, however, concedes that the petitioners in these cases have paid the entire liability to the said Society under WPC 11065/19 & con. Cases 11 their respective loans; and that such amounts have also been paid by the Primary Society to its client. 6. The learned Senior Government Pleader, appearing for the official respondents in these cases, submits that the transactions involved in these cases are between a Primary Society and their members on one hand; and between such Society and District Cooperative Bank or the other. He says that until specific complaints are brought to their notice, the official respondents will have no role to play, at least as of now. 7. When I consider the submissions of the parties as afore, it becomes obvious that since the writ petitioners have paid their entire amounts under the loan accounts to the Primary Society and since the said Society has, in turn, repaid the amount to the District Cooperative Bank, then there cannot obtain any justification, for the said Bank or for the Primary Society, to retain their loan documents any further. In fact, I do not require to labour much on this issue because a Division Bench of this Court has already declared this in the judgment in **Managing Director, Kerala State Co-operative Housing Federation v. Leela Issac and others** (2017 (2) KHC 535). The unequivocal enunciation of law in this judgment is unmistakable that once the principal borrower pays off their entire liability to the WPC 11065/19 & con. Cases 12 District Cooperative Bank, then they cannot retain their title documents, notwithstanding the fact that they may have some agreement between themselves and the Primary Societies. In the afore circumstances, I order these writ petitions directing the competent authority of the Ernakulam District Cooperative Bank to return the title documents of the properties, belonging to the petitioners in these cases, to the Primary Society, namely, the Mulanthuruthy Housing Co-operative Society, upon the said Society approaching them with a requisite resolution, within a period of two weeks from the date on which the Society makes such request. On receiving the documents from the District Co-operative Bank, the Primary Society will thereupon handover the same to the petitioners, after obtaining the requisite receipt from them, without any delay thereafter but not later than one week from the date of receipt of the documents. Sd/Devan Ramachandran, Judge tkv WPC 11065/19 & con. Cases 13 ## **APPENDIX OF WP(C) 11065/2019** **PETITIONER'S EXHIBITS:** **EXHIBIT P1** **PHOTOCOPY OF THE FORM OF RELEASE DEED OF GEHAN NO.G 1427/11 AND GEHAN NO.G 1737/15 EXECUTED ON 29.07.2011 AND 17.09.2015.** **EXHIBIT P2** **PHOTOCOPY OF THE LETTER DATED 05.12.2018 ISSUED BY THE 3RD RESPONDENT.** /TRUE COPY/ P.S. TO JUDGE WPC 11065/19 & con. Cases 14 ## **APPENDIX OF WP(C) 11069/2019** **PETITIONER'S EXHIBITS:** **EXHIBIT P1** **PHOTOCOPY OF THE FORM FOR RELEASE DEED OF GEHAN NO. 2492/2018 DATED 24-10-2018.** /TRUE COPY/ P.S. TO JUDGE WPC 11065/19 & con. Cases 15 ## **APPENDIX OF WP(C) 11222/2019** **PETITIONER'S EXHIBITS:** **EXHIBIT P1** **PHOTOCOPY OF THE FORM FOR RELEASE DEED OF GEHAN NO.919/2019 DATED 05.01.2019.** /TRUE COPY/ P.S. TO JUDGE WPC 11065/19 & con. Cases 16 ## **APPENDIX OF WP(C) 11270/2019** **PETITIONER'S EXHIBITS:** **EXHIBIT P1** **PHOTOCOPY OF THE FORM FOR RELEASE DEED OF GEHAN NO. 97/2019 DATED 17.01.2019** /TRUE COPY/ P.S. TO JUDGE