Sirs! My bank is refusing to release property documents even after complete closure of home loan. They are arguing that we should clear Tarun Mudra loan, taken from the same bank. Please advice!! PS: The registered office address of our parternership firm is the same as our house address
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
For my information can you please clarify if you had obtained two separate loans in the first place, later on can you also clarify if both the loans had been taken in the name of the partnership firm.
If the home loan was taken in Individual name, why was the address same as that of the Partnership firm?
Unless the questions are clear, I or the other members would not be able to answer your queries clearly.
bank is exercising its right of lien
2) A general Lien gives the right to the creditor to retain the possession till all amounts due from debtor are paid or discharged
3) Right can be exercised for other dues of same borrower, on goods and securities remaining in its procession even after the other loan taken against them, has been paid
Thank you sirs for the clarifications! 1, Hon'ble Murthy sir: Firstly, the home loan was taken in 2002 (wife as co-applicant). Secondly, our firm's registered address is that of our house. Yes! TWO separate loans were taken. One a home loan with my wife as co-applicant; Two a Tarun Mudra loan for our partnership firm wherein my partner is involved. (incidentally the firm's regd. address is my house address) This Tarun loan was taken last year for expanding our business activities. 2. Hon'ble Sethi sir: Yes! They are using this lien against us (some indebtedness of the borrower clause) This amounts to UNFAIR practice. This gives any bank/institution unlimited powers to HARASS customers under this legal clause, which is very, very unfair. Isn't there a legal remedy for this DRACONIAN clause?? Addl info: This said bank is famous for using 'Name & Shame tactics'. The recovery team came to our house and created a 'ruckus'. And, when questioned they say this 'method' is within their legal gambit. Guess, we are living in a 'banana republic' with regard to these banks. NO democratic right at all. Sirs! FINALLY... 1. Could you please suggest how to get back our documents? 2. What guarantee will these bank guys NOT use the same 'name & shame' method for this Tarun Loan (in spite of regular payments)? 3. Will changing our regd. office address OR removing myself from the partnership firm (through legal means - with ROC) give a legal edge to get back documents? 4. Any other way out?? PS: Our entire family is mentally very disturbed and genuinely feel this is plain HARASSMENT Thanks once again!!
if you have been regularly paying installments bank cannot resort to name and shame tactics
2) issue legal notice to bank to direct its recovery agents not to harass you when loan is being paid on time
3) you can file police complaint against bank , its recovery agents for criminal intimidation under section 506 of IPC
4) bank would return your original documents on repayment of second loan taken as it can exercise its right of lien
Hi, Loan transaction is different from one loan to another loan, if you repaid the particular loan, then the documents taken by the bank for that purpose have to be returned. It is better you can file a complaint before the consumer court.
My bank is refusing to release property documents even after complete closure of home loan.
They are arguing that we should clear Tarun Mudra loan, taken from the same bank.
If this title documents have not been issued as collateral security then the bank has no rights to retain the title documents even after discharge of full loan.
You can drag them to consumer forum seeking relief and compensation for the deficiency in service and mental harassment.
1. Could you please suggest how to get back our documents?
File a case in the consumer forum
2. What guarantee will these bank guys NOT use the same 'name & shame' method for this Tarun Loan (in spite of regular payments)?
Lodge a criminal complaint against the agents who approach you at your home or trying to malign your name in the name of loan recovery or indulging in illegal activities in the loan recovery. The supreme court itself has come down heavily on such illegal tactics adopted by the banks and financial institutions, hence the police will certainly take proper legal action on complaints made in this regard.
3. Will changing our regd. office address OR removing myself from the partnership firm (through legal means - with ROC) give a legal edge to get back documents?
This will not make any difference to the action they have already initiated. You have to move legally to this issue which will give you respite.
4. Any other way out??
Consult a local lawyer on such further issues.