Decided on February 28,2017

Managing Director, Kerala State Co-Operative Housing Federation Appellant
Leela Issac And Others Respondents


P.R.RAMACHANDRA MENON,J. - (1.) These appeals have been preferred against a common judgment dated 27.02.2015 (followed by a common order dated 29.09.2015 passed, rejecting the Review Petition preferred by the appellants, seeking for reconsidering the direction), whereby the Title Deeds deposited by the Members of the Primary Co- operative Societies as security at the time of availing Housing Loans from the Primary Societies and kept in the drawers of the Appellant Federation/Apex Body are ordered to be returned, once it is confirmed that the amount due under the loan transaction is fully satisfied by the members, to the Primary Co-operative Societies.
(2.) Since the issue is common, the pleadings and proceedings are referred to as given in W.A.No.2041 of 2016. The writ petitioners, who were members of the 4th respondent, Primary Co-operative Societies, sought to avail financial assistance from the Societies for construction of residential building. After considering the applications, the title deeds and such other records required to be produced, Loan was sanctioned and the amount was disbursed to the writ petitioners, instructing them to effect the repayment of the due amount with interest at the agreed rate, by way of equal monthly instalments.
(3.) In so far as the transactions between the writ petitioners/Members and the Primary Co-operative Societies (in which they are members) are concerned, by the passage of time, the borrowers completely repaid the amount due and sought to return the title deeds. But for the futile assurances, purchasing time, the title deeds were never returned, by the Primary Co-operative Societies, when the writ petitioners approached the Taluk Legal Services Authorities and filed petitions for redressal of their grievances. A statement was filed on behalf of the Asst. Registrar of Co-operative Societies , to the effect that the Title Deeds submitted by the borrowers were in fact produced/surrendered before the 6th respondent/Apex Federation, in connection with the financial assistance availed by the Primary Societies from the Federation pointing out that the loan was actually sanctioned by the Federation, to be given to the Members of the Primary Co-operative Societies . It was also pointed out that remittances being made by the Primary Co- operative Society to the Federation was in respect of a 'batch of loan transactions' taken together and as such, the remittance was being credited by the Federation against the 'general account of the Primary Society' and not against the individual borrowers, in turn resulting in giving credit also to the members of the Primary Co-operative Societies , who were actually in default unlike the writ petitioners. It was further pointed out that, steps were being taken by the Primary Co-operative Societies for liquidating the liability payable by the defaulters; but by virtue of some interim orders of stay, the matter could not be finalised . It was also stated that, once this was got over and the due amount was cleared by the Primary Society to the Apex Federation, the Title Deeds would be got back and returned.;

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