Legal Question in Banking Law in India

Please refer my Loan Account numbers 2548654 and 63247511 with HDFC Bank, Vidyadhar Nagar, Jaipur.

Both the above loans were taken as mortgage against my residential property. At the time of the loan the property was jointly owned by Me (Ajay Raina) and my Brother (Amit Raina), hence the loan was taken as a Joint Loan in the names of Amit Raina and Ajay Raina.

Later on in a mutual agreement the property was registered in my name through a registered relinquishment deed and the subsequent registry depicting my sole ownership of the property was deposited with the bank along with a letter claiming sole proprietary of the property mortgaged with the bank and also depicting my sole responsibility for repayment of the loan. I was assured that the loan had been transferred to my name. The bank told me that it will take some time to transfer the payment option from my brothers account to my account so in the meanwhile I paid one installment in cash. Later the payments of the installments also were transferred to my personal account and have been paid from my personal account with HDFC since last one year.

Recently I went to the bank for foreclosure of the said loans and received a letter depicting my full outstanding with the bank against which I made the necessary payments. Now when I requested for the papers of my property the bank is refusing to hand over the same. The reason cited is that there is some outstanding in the name of Amit Raina for a personal Loan he had taken from the Bank for which I am not responsible or liable. No information of any sort was given to me for this outstanding when I requested the foreclosure details, or even when I paid the mortgage dues. If the bank has not transferred the loan to my name then it shows their malafide intentions and is not due to any fault of mine. If the matter would have been cleared to me before hand I would have assured that the loan was transferred in my name before paying Twenty Three Lakh Rupees for the foreclosure.

After taking Twenty Three Lakh Rupees the bank is not releasing the papers against which this loan was repaid. They are holding it for some personal loan issued to Amit Raina on a personal basis and not involving my property as security.

They are trying strong arm tactics against me and blackmailing me to cough up the payment of some other loan which does not involve me at all. The bank is putting me unnecessarily through a lot of mental harassment

The bank has given the following reason for not releasing my property.

QUOTE

* As per Bank's policy, the property documents of these Loans against Property Accounts can be issued only post closure of Business Loan account no. 12258272 and Personal loan account no. 91815345. There is a clause specifically mentioned in the loan agreement regarding right to set-off that: �The Bank shall have a Paramount right of lien on all the monies, accounts securities, deposits, goods another asset and properties belongings to the borrower or standing to the borrower�s credit (whether jointly with other person) which are or may at any time with or in the possession or control of any branch of the bank for any reason or purpose whatsoever�.

* According to the guidelines issued by the RBI the lenders should release all the securities on receiving payment of loan or realization of loan subject to any legitimate right or lien for any other claim, lenders may have against borrowers.

UNQUOTE

My brother does not live with me after the relinquishment deed and the bank has initiated proceeding under Sec 138 against him. They have his contact numbers and address and are in touch with him. Still they are troubling me since last one month.

Please Guide me on my legal standing in this matter.


Asked on 12/11/10, 7:21 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

Once the Bank has recognised your sole rights over the property and transferred t he housing loan/mortgage loan on you, they cannot exercise the lien on documents which are yours. Give notice to the chairma/CEO of the Bank to accede to your legitimate request, failing which, file a claim before the Banking Ombudsman for necessary relief and damages. If the Banking Ombudsman does not give you the relief, you can reject his award and file complaint before the District consumers disputes Redressal forum against the Bank. Better take the assistance of a local lawyer in pursuing the remedies.

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Answered on 12/12/10, 2:55 am


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