Case Law Details
Manisha Rahul Brahmbhatt Vs Bank of Baroda (Gujarat High Court)
Conclusion: Bank could not withhold the original documents of the mortgage property in question for another dues under PMMY scheme, once assessee had repaid the loan as the financial assistance advanced by bank under PMMY Scheme was advanced without any collateral security.
Held: Assessee had repaid the entire term loan of Rs. 9.80 lakh and there was no outstanding to the Bank of Baroda as against the amount of Rs. 9.80 lakh advanced to assessee in the year 2017. However, bank was not ready to release the documents of the property in question of assessee which were mortgaged while availing financial assistance of Rs. 9.80 lakh on the ground that assessee had thereafter availed financial assistance of Rs. 5 lakh under the PMMY Scheme. According to the bank, in view of the Clause 14 of the loan agreement and the consent given by assessee while availing financial assistance of Rs. 9.80 lakh, the bank was entitled to continue the lien over the mortgage property as collateral security till assessee repaid the financial assistance of Rs. 5 lakh availed under the PMMY Scheme. It was held in view of the provisions of CGTMSE Scheme, Bank was covered for any default which may be made by assessee with regard to financial assistance advanced by bank under the PMMY Scheme. Thus, the bank had committed an error by withholding the original documents of assessee in respect of the term loan of Rs. 9.80 lakh which was fully paid. Respondent-bank is directed to hand over all the original documents of the property in question which is mortgaged by the petitioner for availing financial assistance of Rs. 9.80 lakh in the year 2017.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Heard learned advocate Mr. Hitendra Rajput for the petitioner and learned advocate Mr. Rituraj Meena for the respondent-Bank.
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