State Bank of Patiala versus Charanjeet Kaur

In this case, complainant Charanjit Kaur took two housing loans, one in 2002 and the other in 2005, from State Bank of Patiala and mortgaged her property. The husband of the complainant had also availed credit facility from the same bank and the complainant had stood as a guarantor of the said credit. When the complainant settled her loan, she requested the bank to release her title deeds. However, the bank refused to return her deeds saying that she stood guarantor for her husband’s loan, and hence it could release the deed only when that loan was repaid. The complainant contended that two title deeds in respect of two separate floors for the same property were deposited with the bank against two housing loans. Since one of the loans was cleared, the bank could not hold the security mortgaged against that particular loan. The bank said that as she was a guarantor of the credit facility taken by her husband, she was under an obligation to pay the aforesaid loan and therefore the title deed of her property could not be returned.