Banking--Title Deed Retention--Bank Cannot Withhold Original Title Documents After Accepting Settlement Amount and Issuing No Dues Certificate
A bank cannot withhold original title documents of a secured asset after accepting full settlement of dues and issuing a no dues certificate, particularly where the title deed of the person in possession has never been questioned and municipal records stand mutated in their favour. Acceptance of settlement amount and issuance of a no dues certificate extinguishes the bank's justification for retaining the title documents, regardless of whether the person making payment was the original borrower or a subsequent owner in possession.
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