THE HON’BLE SRI JUSTICE NOUSHAD ALI Writ Petition No.25170 of 2009 ORDER : This Writ Petition has been filed to direct the respondent-bank to release the petitioner’s documents relating to the subject property which has been mortgaged as security towards loan obtained by one, Smt.Karapu Satyakumari on the ground that the petitioner, who is said to be the vendee, would undertake to discharge the loan of the said person. Heard Sri Rama Mohan Palanki, learned counsel for the petitioner and Sri M.Narender Reddy, learned standing counsel for the State Bank of India. A house property bearing No.7-6-24/2 is owned by one Smt.Karapu Satya Kumari, wife of Suri Babu. She availed a loan of Rs.7,00,000/- on 04-09-2004 from the respondent-bank and the said house property was mortgaged as security. It appears that subsequent to availing of the loan, Smt.Satya Kumari sold the said house property by executing a sale deed No.14628/2006, dated 23-10-2006 in favour of the petitioner herein. The petitioner states that by virtue of the said purchase, she has acquired ownership rights in respect of the said property. At the same time, she also states that she approached the respondent-bank to discharge the loan amount. It is stated that the respondent-bank is not inclined to accept due amount from the petitioner on the ground that the vendor of the petitioner is a guarantor for a loan obtained by her husband. The respondent-bank insisted that unless the loan availed by the husband is also discharged, it is not prepared to accept the amount due and payable towards the loan availed by the vendor of the petitioner. In the circumstances, the petitioner has filed this writ petition for the aforesaid relief. The Chief Manager of the respondent-bank has filed counter- affidavit. It is stated that the petitioner purchased the property which has been mortgaged and got the sale deed executed in her favour without the consent of the bank. The husband of the vendor of the petitioner fraudulently obtained a loan of Rs.8,00,000/- by depositing a fabricated title deed and the vendor is the guarantor for the said loan amount. It is also stated that the vendor’s husband has obtained various loans from other banks by depositing fraudulent documents and obtained loans aggregating a sum of Rs.68.38 lakhs by depositing fraudulent documents. On a complaint a case has been registered in crime No.261/2006 against the vendor of the petitioner and her husband and the same is pending investigation. It is stated that since the vendor of the petitioner is a guarantor to the loan availed by her husband, the subject house property, which has been offered as security, could not be released in favour of the petitioner. From the aforesaid facts it is evident that two separate loans were availed by the vendor of the petitioner and her husband. The property, which has been purchased by the petitioner, is the secured asset only in respect of the loan availed by her vendor. From the counter of the respondent-bank it is clear that this asset has not been offered as a security to the loan availed by the husband, therefore the bank could not have objected for the discharge of dues payable by the vendor of the petitioner in respect of the house property and release the documents. If the loan obtained by the husband of the vendor is fraudulent, the respondent-bank can proceed against him initiating any action permissible under law, but the same cannot be taken as a ground for the discharge of the loan availed by the vendor of the petitioner. In the circumstances, this Writ Petition is disposed of directing that if the petitioner comes forward to repay the entire amounts due and payable in respect of the loan availed by her vendor Smt.Karapu Sathya Kumari and also produces a consent letter, the respondent-bank is directed to accept the same and release the document in favour of the petitioner. There shall be no order as to costs. ________________ NOUSHAD ALI, J. 31st March, 2011. skmr​ THE HON’BLE SRI JUSTICE NOUSHAD ALI Writ Petition No.25170 of 2009 Date : 31-03-2011 Between : Sm,t.Maddimsetty Sail Lakshmi .. Petitioner and The Branch Manager, State Bank of India, Personal Banking Branch, Main Road, Kakinada, East Godavari District .. Respondents