K. V. Janardhan Pai v Union Bank of India

## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ``` THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN WEDNESDAY, THE 12[TH] DAY OF JULY 2023 / 21ST ASHADHA, 1945 ``` ## **`WP(C) NO. 18273 OF 2023`** ## **`PETITIONER/S:`** ``` K.V JANARDHAN PAI , AGED 56 YEARS S/O K N VENKITESWARA PAI DIRECTOR, M/S. PADMASRI TEXTILES PVT. LTD NO.59/1043 & 1044 SIVASAKTHI KRISHNASWAMY ROAD ERNAKULAM-, PIN - 682035 BY ADVS. C.S.AJITH PRAKASH T.K.DEVARAJAN BABU M. ANCY THANKACHAN NIDHIN RAJ VETTIKKADAN GOURI KAILASH ``` ## **`RESPONDENT/S:`** ``` 1UNION BANK OF INDIA MARINE DRIVE BRANCH HIGH COURT JUNCTION, KOCHI 682031. REPRESENTED BY ITS BRANCH MANAGER, PIN - 682031 ``` - `2 SUCHITHRA K V, D/O KN VENKITESAWARA PAI RESIDING AT 302 MANDAVI PARADISE VIDYARATNA NAGAR, MANIPAL UDUPPI, PIN - 576104` ``` 3SUJATHA, D/O KN VENKITESWARA PAI VASANTHA VIHAR, OPPOSITE K R S, TD ROAD, ERNAKULAM, PIN - 682035 BY ADVS. ASP.KURUP ANIL KUMAR D. Sadchith P Kurup C.P.ANIL RAJ(K/872/2007) SIVA SURESH(K/2688/2022) RESHMA RAJ(K/1150/2021) ``` ``` THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON ``` ``` 12.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` -2- W.P.(C). No. 18273 of 2023 ## **P.V.KUNHIKRISHNAN, J.** ====================================================== W.P.(C) No. 18273 of 2023 ============================================================= Dated this the 12[th] day of July, 2023 ## **JUDGMENT** M/s.Padmasree Textiles Private Limited Company is a registered company under the Companies Act. The petitioner is one of the Directors of the above Company. Petitioner’s deceased father Sri.K.N Venkiteswara Pai was also a Director of the Company. The said Company availed a financial credit facility from the Corporation Bank, which bank later amalgamated with Union Bank of India. After the amalgamation, the transactions were with the Union Bank of India, Marine Drive Branch. To secure a loan for the Company, certain extend of land situated in Cherthala Taluk belonging to deceased Sri.K.N Venkiteswara Pai was mortgaged with the Bank. Subsequently, because of the non payment of the loan amount, loan account became non-performing asset. Subsequently, the Bank filed O.A No.355/2020 before the Debt Recovery Tribunal, Ernakulam for recovery of amount. The petitioner was one of the respondent in the -3- W.P.(C). No. 18273 of 2023 above original application. The Bank initiated coercive steps under the SARFAESI Act also. Aggrieved by the action taken as per the SARFAESI Act, the M/s.Padmasree Textiles Private Limited filed SA No.197/2022 before the Debt Recovery Tribunal, Ernakulam and at the time of admission of the matter, it is stated that the petitioner deposited an amount of Rs.40 lakhs on 27.04.2022 and later again an amount of Rs.81,07,600/-. Subsequently, the matter was settled between the parties under a one time settlement. Accordingly, the M/s.Padmasree Textiles Private Limited paid an amount of Rs.18,00,000/- in full and final settlement of all the claims raised by the Bank and the Company. On receipt of the amount, the Bank closed its account on 24.03.2023 as evident by Ext.P1. It is submitted that, in view of the closure of the account, the petitioner requested for return of the original deed. The original deeds of immovable property belonging to Sri. K.N.Venkiteswara Pai is still with the Bank. It is the case of the petitioner that during the lifetime of Sri.K.N.Venkiteswara Pai, he had executed a Will dated 25.02.2008 bequeathing his properties in favour of his children. Ext.P2 is the Will. Sri. -4- W.P.(C). No. 18273 of 2023 K.N.Venkiteswara Pai died on 02.02.2018 as evident by Ext.P3 death certificate. It is submitted that as per the above Will, immovable properties belonged to Sri.K.N.Venkiteswara Pai devolved on the petitioner and hence the petitioner is entitled to get those title deeds relating to the immovable properties from the 1st respondent Bank. Sri.K.N.Venkiteswara Pai has left behind two other children who are arrayed as respondent Nos. 2 and 3 in this writ petition. Ext.P4 is the Legal Heirship Certificate. The respondents 2 & 3 have given their consent in handing over the documents relating to the immovable property, which are with the Bank. Ext.P5 is the No Objection Certificate issued by the elder sister of the petitioner and Ext.P6 is the No Objection Certificate issued by the younger sister of the petitioner. It is the case of the petitioner that since the petitioner has become the absolute owner of the property, which has mortgaged with the bank, the petitioner approached the 1[st] respondent requesting them to return the original document of the immovable property to the petitioner. The petitioner produced the Will and also the No Objection Certificate issued by respondents 2 and 3. But the 1[st] respondent refused to hand -5- W.P.(C). No. 18273 of 2023 over the original title deeds relating to immovable property on the ground that Ext.P2 Will is not probated. Aggrieved by the same, this writ petition is filed with following prayers: _“i. Issue a writ in the nature of mandamus directing the 1st respondent Bank to return the entire original Title Deeds relating to immovable properties, deposited by Shri.K.N. Venkiteswara Pai, as security for loan transaction for Padmasree Textiles to the petitioner forthwith._ _ii. to issue such other appropriate order or directions dispensing with the filing of English translation of the vernacular documents produced along with the writ petition._ _iii. To issue such other writ or order or direction as this Hon’ble Court may be deem fit and proper in the fact and circumstances of the case or as may be prayed from time to time.” (sic)_ 2. Heard the counsel for the petitioner and the counsel appearing for the bank. 3. The counsel for the petitioner reiterated the contentions raised by the petitioner. The Standing Counsel appearing for the bank takes me through paragraph 4 of the counter affidavit filed by the 1[st] respondent in which it is stated that certain documents are necessary -6- W.P.(C). No. 18273 of 2023 for returning the title deeds and that is necessary as per the policy on settlement of death scheme of the Union Bank. 4. This Court considered the contentions of the petitioner and the respondents. It is an admitted fact that the petitioner is a partner of M/s.Padmasree Textiles Private Limited Company. It is also an admitted fact that the loan account with the 1[st] respondent bank is closed by M/s.Padmasree Textiles Private Limited Company as evident by Ext.P1. Therefore, as on today there is no liability from M/s.Padmasree Textiles Private Limited Company to the 1[st] respondent bank. This Court in **Vinu Madhavan v. State Bank of India, Vennala Branch, Kochi [2023 (2) KHC 508]** observed that once the loan account is closed, the bank cannot retain the title documents stating any other reason. In this case, admittedly the petitioner and respondents 2 and 3 are the legal heirs of the deceased Sri.K.N.Venkiteswara Pai. Ext.P3 is the death certificate of Sri.K.N.Venkiteswara Pai and Ext.P5 is the legal heir certificate. In Ext.P5 legal heir certificate, the petitioner and respondents 2 and 3 are -7- W.P.(C). No. 18273 of 2023 the legal heirs of the deceased Sri.K.N.Venkiteswara Pai. Respondents 2 and 3 also produced an undertaking, as evident by Exts.P5 and P6, to the effect that they have no objection in handing over the documents to the petitioner. From this it is clear that there is no dispute between the legal heirs of the deceased Sri.K.N.Venkiteswara Pai. In such circumstances, the bank shall not take any technical ground for not returning the title documents especially when the liability to the bank is cleared as evident by Ext.P1 and the legal heirs have no objection in releasing the title document to the petitioner. In the peculiar facts and circumstances of this case, the 1[st] respondent need not insist for the documents mentioned in the “policy on settlement of death claim 2022-23”. Therefore, I am of the considered opinion that, the bank shall release the documents based on the request of the petitioner. Therefore, this writ petition is disposed of in the following manner: -8- W.P.(C). No. 18273 of 2023 1. The 1[st] respondent bank is directed to return the entire original title deeds relating to the immovable property deposited by Sri.K.N.Venkiteswara Pai as security for loan transaction for M/s.Padmasree Textiles Private Limited Company forthwith, at any rate, within two weeks from the date of receipt of a certified copy of this judgment on production of the original of Exts.P2, P3, P4 and P5. 2. The bank shall return the original of Exts.P2, P3 and P4, after taking necessary copy for keeping the same in their file. sd/- **P.V.KUNHIKRISHNAN** **JUDGE** bng/das -9- W.P.(C). No. 18273 of 2023 ## **`APPENDIX OF WP(C) 18273/2023`** ``` PETITIONER EXHIBITS ExhibitP1 ``` ``` . A TRUE COPY OF THE LETTER DATED 10.04.2023 ISSUED BY THE 1ST RESPONDENT BANK IN FAVOUR OF PADMASREE TEXTILES PRIVATE LIMITED SHOWING RECEIPT OF THE AMOUNT AND CLOSURE OF ACCOUNT IN TERMS OF THE SETTLEMENT ``` - `Exhibit2 A TRUE COPY OF THE WILL EXECUTED BY THE FATHER OF THE PETITIONER IN FAVOUR OF HIS CHILDREN DATED 25.02.2008` - `Exhibit P3 A TRUE COPY OF THE DEATH CERTIFICATE DATED 27.02.2018 ISSUED BY THE CHENGAMANAD GRAMA PANCHAYAT` - `Exhibit P4 A TRUE COPY OF THE LEGAL HEIRSHIP CERTIFICATE DATED 19.02.2018 ISSUED BY THE TAHSILDAR, ALUVA` - `Exhibit P5 A TRUE COPY OF THE NO OBJECTION CERTIFICATE ISSUED BY THE ELDER SISTER OF THE PETITIONER DATED 25.03.2023` - `Exhibit P6 A TRUE COPY OF THE NO OBJECTION CERTIFICATE ISSUED BY THE YOUNGER SISTER OF THE PETITIONER DATED 25.03.2023` - `Exhibit P8 A true copy of the letter dated 22.03.2023 written by the petitioner wherein acknowledgement was given by the Bank` - `Exhibit P7 A TRUE COPY OF ONE SUCH REQUEST SUBMITTED BY THE PETITIONER TO THE BRANCH MANAGER, UNION BANK OF INDIA, MARINE DRIVE DATED 23.01.2023`