since your mother is acting as guarantor of occ loan and co applicant in housing loan bank would be justified in exercising general lien .
Applicability of general lien
I have occ account with a bank for my pvt ltd company,where my mothers property is mortgaged as security for that account.my mother and my elder brother jointly has a housing loan with the same bank(eld brother iss applicant and my mother is co applicant)(both are joint holders of property ) properties mortgaged for both loans are completely different. my elder brother has moved this loan to other bank(takeaway loan),the other bank has approved his loan proposal,disbursed loan amount. to clear the outstanding of the first bank. now after paying complete due amount the first bank is refusing to give back the property documents of housing loan,saying general lien is applicable over two loans as our mother is guarantor in occ loan and co applicant in housing loan.the are asking us to clear off both the loans if we need housing loan documents. the company occ account has been classified as NPA. is general lien applicable to this issue? please guide us over this issue.
Asked 8 years ago in Business Law
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2 Answers
With the recent changes in the laws for recovery if loan amount on the NPA accounts, the banks are at liberty to invoke such clauses to protect their interests and secure their loan repayment.
However if you feel that this is not as per the law in vogue, you may make a written representation with the bankers about this and after that you may file a mandatory injunction suit against bank for restraining them from indulging in such illegal acts of holing back your document in the guise of general lien etc.
You can even aproach consumer forum for return of your property documents as well as for compensation against the mental agony you suffered due to this.
