- 1 - NC: 2025:KHC:126 WP No. 28280 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE R DEVDAS WRIT PETITION NO. 28280 OF 2023 (GM-RES) BETWEEN: SANJAY ALLOYS PRIVATE LTD REPRESENTED BY ITS MANAGING DIRECTOR REG. UNDER COMPANIES ACT JAIPRAKASH GUPTA OFFICE AT NO 77, B, OOSMAN KHAN ROAD, TOWNHALL CIRCLE, BENGALURU 560002 …PETITIONER (BY SRI. VINAY SWAMY C., ADVOCATE) AND: UNION BANK OF INDIA REP. BY ITS ASSISTANT GENERAL MANAGER, OFFICE AT NO 71/1, BRIGADE PLAZA, SC ROAD BRANCH, SUBEDAR CHATRAM, ROAD, NEAR ANANDA RAO CIRCLE, BENGALURU 560009 …RESPONDENT (BY SRI. SHETTY VIGNESH SHIVARAM., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENT BANK TO RELEASE THE ORIGINAL DOCUMENTS OF TITLE IN RESPECT OF PROPERTY SITUATED AT PALAMNER Digitally signed by DHARMALINGAM Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:126 WP No. 28280 of 2023 MODAL, CHITTOR DISTRICT, ANDHRA PRADESH AS PER ANNEXURE K DATED 09/08/2019 I.E. LETTER NO. OR/SCR/ADV/434/2019-2020. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE R DEVDAS ORAL ORDER Petitioner, a Private Limited Company is before this Court seeking directions to the respondent - Bank to release the documents of title in respect of property situated at Palamaneru Modal, Chittur District, Andhra Pradesh. 2. Learned counsel for the petitioner submits that the petitioner has furnished two properties as collateral security and is enjoying a credit facility at the hands of the respondent - Bank. Insofar as the credit facility availed by the petitioner to the tune of Rs.5 Crores the petitioner has paid back the entire amount and therefore respondent - Bank had in fact agreed to release the original documents - 3 - NC: 2025:KHC:126 WP No. 28280 of 2023 of the property situated at Palamaneru Modal, Chittur District. Attention of this Court is drawn to Annexure-J, where the GMO of the respondent - Bank recommended that in view of the contents of the document it was recommended for reversal of excess interest of Rs.1,74,561/- erroneously charged in the loan account of the petitioner for the period from 27.08.2014 to 31.12.2015, subject to the terms and conditions therein. However, subsequently, the respondent - Bank has filed a petition before the commercial court and sought for pre- mediation insofar as the said amount of Rs.1,74,561/- is concerned. Learned counsel submits that irrespective of whether the petitioner is liable to pay the said interest amount which is further added up to Rs.4 lakhs according to the respondent, there is no need for the respondent - Bank to hold back the original documents pertaining to the property situated at Palamner Modal, Chittur District. Learned counsel for the petitioner submits that the property situated at Bangalolre which is furnished as collateral security is more than sufficient to cover the - 4 - NC: 2025:KHC:126 WP No. 28280 of 2023 credit limit of M/s. Maruthi Steels and Hardware, which is a sister concern and the sum of Rs.4 lakhs and odd, which the respondent – Bank is seeking from the petitioner. 3. Having regard to the communication made by the respondent - Bank with the petitioner, it is clear that the respondent – Bank is holding back the original documents belonging to the petitioner situated at Palamner, Chittur District, only on the ground that the petitioner is liable to pay a sum of Rs.4 lakhs and odd toward the interest while it is admitted that the petitioner has cleared nearly sum of Rs.5 Crores, which was due to the respondent - Bank. It is also not disputed at the hands of the learned counsel for the respondent – Bank that the property belonging to the petitioner situated at Bangalore is sufficient to cover the liability of the sister concern of the petitioner and the same may be used for recovering such amount of Rs.4 lakh and odd, if the respondent succeeds before the commercial court. - 5 - NC: 2025:KHC:126 WP No. 28280 of 2023 4. Consequently, the writ petition is allowed, while directing the respondent - Bank to release the original documents of title pertaining to the property bearing Sy.No.537/1A, 645 & 744, Nakkapalli Village, Palamaneru Sub District & Mandal, Chittur District, Andra Pradesh, measuring 7.90 acres to the petitioner forthwith. The petitioner will be bound by the undertaking given before this Court that the petitioner will pay the respondent - Bank if it succeeds before the commercial court insofar as the claim before commercial court towards the interest portion is concerned and property belonging to the petitioner which is given as collateral security for the credit limit obtained by the sister concern of the petitioner shall continue to bind the petitioner even insofar as the interest portion is concerned. Ordered accordingly. Sd/- (R DEVDAS) JUDGE KLY CT: JL