- 1 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 3388 OF 2026 (GM-RES) BETWEEN: 1. MRS. S. KAMALA AGED ABOUT 68 YEARS W/O LATE C.V. SUBRAMANYAM @ C V SUBRAMANI CHIKKAJALA, JALA HOBLI BENGALURU-562157. 2. M/S TRI-STAR CONSTRUCTIONS A PROPRIETORSHIP CONCERN HAVING ITS OFFICE AT NO. T-04, 3RD FLOOR, 'SMART AENUE' NO. 90, COLES ROAD, FRASER TOWN BANGALORE -560005. REP BY ITS PROPRIETOR MR. MAMOOM AMEEN 3. MR. KAMBALA NARASIMHULU AGED ABOUT 45 YEARS S/O MR. NARASAIAH KAMBALA RESIDING AT NO. 358, 3RD CROSS 12TH MAIN, BEML LAYOUT, ITPL ROAD THUBARAHALLI BENGALURU-560037. …PETITIONERS (BY SRI. NATARAJ .D.M, ADVOCATE) Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 AND: 1. M/S CANARA BANK REP. BY ITS CHAIRMAN AND MANAGING DIRECTOR J C ROAD, BANGALORE-560 002. 2. M/S CANARA BANK REP. BY ITS BRANCH MANAGER DEVANAHALLI BRANCH AKSHAYA BHAVAN, 1ST FLOOR 2633, B B ROAD, DEVANAHALLI -560 110. 3. THE SUB-REGISTRAR DEVANAHALLI DEVANAHALLI -560 110. …RESPONDENTS (BY SRI. ADITYA DIWAKARA, AGA FOR R3; V/O/D 09.02.2026 VIGNESH S. SHETTY, ADVOCATE FOR R1 AND R2) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT THE R-1 AND 2 TO ISSUE A NO OBJECTION CERTIFICATE AND FURTHER REGISTER A DEED OF DISCHARGE DISCHARGING THE MORTGAGES CREATED OVER THE SCHEDULE PROPERTY DATED 07.12.1973 AND 20.01.1975 WHICH IS REFLECTED IN THE ENCUMBRANCE CERTIFICATE (ANNEXURE-C) AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 ORAL ORDER The petitioners in the captioned writ petition have approached this Court seeking issuance of a writ in the nature of mandamus directing respondent Nos.1 and 2 to issue a No Objection Certificate (NOC) and to take consequential steps to execute and register a Deed of Discharge in respect of the mortgage created over the schedule property under the mortgage deeds dated 07.12.1973 and 20.01.1975, thereby enabling the petitioners to have the said encumbrance deleted from the encumbrance register maintained by the jurisdictional Sub-Registrar. 2. Petitioner No.1 claims to be the absolute owner in possession and enjoyment of the schedule property. It is her specific case that the said property originally belonged to her husband and that the same had fallen to his share in a partition suit amongst the family members. After the demise of her husband, petitioner No.1 has - 4 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 succeeded to the property by way of succession and her name is also stated to have been duly mutated in the revenue records. The petitioners contend that upon verification of the encumbrance certificate relating to the schedule property, they noticed entries reflecting creation of mortgages in favour of respondent No.2/Bank in connection with financial assistance obtained by the petitioners’ family. 3. It is their specific case that the entire loan liability has long since been discharged and that no outstanding dues are payable to respondent No.2/Bank. In spite of discharge of the loan, the encumbrance created under the aforesaid mortgage deeds continues to remain in the encumbrance register. The petitioners therefore claim to have approached respondent No.2-Bank requesting the Bank authorities to issue a No Objection Certificate and also to execute a deed cancelling or discharging the mortgage so as to enable the petitioners to have the encumbrance deleted. Alleging inaction and - 5 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 failure on the part of the respondent-Bank in taking appropriate steps despite such request, the petitioners have presented the instant writ petition. 4. Learned counsel appearing for respondent No.2/Bank, on instructions, would submit before this Court that the Bank presently does not possess the relevant records pertaining to the loan transaction and therefore it is unable to verify as to whether the entire loan liability has been discharged. The said submission made on behalf of a Scheduled Bank cannot be readily accepted by this Court, inasmuch as banking institutions are statutorily expected to maintain proper records relating to financial transactions and securities created in their favour. 5. At this stage, learned counsel appearing for the petitioners has placed on record a communication sent by the respondent-Bank to the petitioners through e-mail, wherein the Bank has indicated its willingness to issue a No Objection Certificate subject to the petitioners - 6 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 executing an indemnity bond. The said communication is taken on record. 6. Be that as it may, when a mortgage is created in favour of a Scheduled Bank as security for repayment of a loan, the Bank is under a legal obligation to maintain proper records relating to the loan transaction as well as the security created. Once the borrower discharges the entire outstanding liability, the Bank is equally bound to take steps to formally discharge the mortgage by executing an appropriate deed of discharge and by issuing the necessary certificate enabling the borrower to have the encumbrance removed from the public records. Since the petitioners assert that the entire loan liability has already been cleared and no dues remain payable to respondent No.2-Bank, it is incumbent upon the Bank officials to verify their records and take necessary action in accordance with law. To that limited extent, this Court is of the considered view that the petitioners have made out a case for issuance of a writ of mandamus. - 7 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 7. In view of the above discussion, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) Respondent Nos.1 and 2 are hereby directed to verify the relevant records pertaining to the loan transaction and also to take into consideration the e-mail communication dated 04.02.2026 addressed by respondent No.2-Bank to the petitioners indicating its willingness to issue a No Objection Certificate subject to execution of an indemnity. (iii) After such verification, respondent No.2- Bank shall take appropriate steps in accordance with law with regard to issuance of the No Objection Certificate and discharge of the mortgage, if the loan liability is found to have been cleared. - 8 - HC-KAR NC: 2026:KHC:15362 WP No. 3388 of 2026 (iv) The aforesaid exercise shall be completed within a period of eight weeks from the date of receipt of a certified copy of this order. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE CA List No.: 1 Sl No.: 48