PUNJAB & SIND BANK versus PUNJAB BREEDERS LTD. & ANOTHER

PUNJAB & SIND BANK versus PUNJAB BREEDERS LTD. & ANOTHER

The scheme restricts only sale of the property within three years of settlement. Creation of third party interest or agreement for sale within three years is not the same as sale. No sale having happened within three years, the appellant-bank cannot claim 50% of the increase in fair market value. The appeal is dismissed and the bank is directed to release the title deed and handover possession to the first respondent.

Parties
Appellant: Punjab & Sind Bank; First Respondent: Punjab Breeders Ltd.; Second Respondent: Another
Jurisdiction
India
Judgment Date
29 March 2016
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 27.09.2012 of the High Court of Punjab and Haryana at Chandigarh in Civil Writ Petition No. 4792 of 2011 (o&m)
Outcome
Appeal dismissed
Legal Topics
One Time Settlement (ots) Scheme, Mortgage, Compromise & Settlement
Banking Law Contract Law One Time Settlement (ots) Scheme Mortgage Compromise & Settlement

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Punjab & Sind Bank

Appellant

Punjab Breeders Ltd.

First Respondent

Another

Second Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 27.09.2012 of the High Court of Punjab and Haryana at Chandigarh in Civil Writ Petition No. 4792 of 2011 (o&m)

Legal Issues

  1. 1 Whether the appellant-bank is entitled to 50% of the increase in fair market value of property fixed at the time of settlement in terms of the OTS scheme when third party interest is created but no sale is made within the lock-in period

Ratio Decidendi

The scheme restricts only sale of the property within three years of settlement. Creation of third party interest or agreement for sale within three years is not the same as sale. No sale having happened within three years, the appellant-bank cannot claim 50% of the increase in fair market value. The appeal is dismissed and the bank is directed to release the title deed and handover possession to the first respondent.

Court Disposition

Appeal dismissed

Orders

  • Appellant-bank directed to release the title deed of the mortgaged property to the first respondent
  • Appellant-bank to handover possession of the property to the first respondent within two weeks