K.R.Selvam v. M/S.Indian Overseas Bank

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 04.06.2026

CORAM

THE HONOURABLE MR.JUSTICE HEMANT CHANDANGOUDAR Writ Petition(MD)No.11360 of 2026 K.R.Selvam .. Petitioner Vs 1.M/s Indian Overseas Bank Puliyadithammam Branch, rep. by its Chief Manager/Authorised Officer, No.9/2, Madurai-Thodi Main Road, Puliyadithammam, Sivagangai District.

2.The Regional Manager, Indian Overseas Bank-Regional Office, No.661/1, South 4th Street, Subramaniapuram, Karaikudi - 630 002.

..Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus to direct the respondents No.1 and 2 to issue the Loan Closure Certificate to return the key of the House and to return the original documents mortgaged/deposited for availing the Loan Account No. 089103351300002 to the petitioner in the light of the Whatsapp Message dated 28.06.2026 sent by the 1st respondent Petitioner's Loan Account No. 089103351300002 has been closed within a time limit to be fixed by this Court.

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For Petitioner : Mr.K.Seemaraj For Respondents : Mr.Y.Jegadeesh

ORDER

The petitioner is before this Court seeking a direction to the respondent Bank to issue a loan closure certificate, hand over the key of the house offered as security, and return the original title deeds and other documents mortgaged or deposited by the petitioner in connection with Loan Account No. 089103351300002. 2.The learned counsel appearing for the respondent Bank submitted that, apart from the aforesaid loan account, the petitioner had also availed an agricultural loan from the Bank. It is further submitted that, as on date, a sum of Rs.1,62,627/- remains outstanding under the said agricultural loan account. Therefore, the respondent Bank has retained the collateral security offered by the petitioner by exercising its right of general lien under Section 171 of the Indian Contract Act, 1872.

3.In view of the aforesaid submission, this Court is of the opinion that the respondent Bank is justified in retaining the security documents until the outstanding dues under the agricultural loan account are discharged.

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4.Accordingly, this writ petition is disposed of, reserving liberty to the petitioner to approach the respondent Bank for foreclosure or closure of the agricultural loan account.

5.In the event the petitioner submits a proposal for foreclosure or closure of the said loan account, the respondent Bank shall consider the same on its own merits and in accordance with law. 6.Upon closure of the agricultural loan account and discharge of all outstanding liabilities, the respondent Bank shall release the key of the house, issue the necessary loan closure/foreclosure certificate, and return the original title deeds and other documents deposited by the petitioner.

7.There shall be no order as to costs.

04.06.2026 NCC : Yes/No Index : Yes/No Internet:Yes skn 3/4

HEMANT CHANDANGOUDAR, J.

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