Please verify the following issue and suggest the course of action in the issue ;-
1 Borrower- X availed Loan from the Bank and created mortgage by deposit of title deeds and committed default The Bank filed Mortgage Suit for Recovery Mortgage its dues and filed mortgage original Title Deed in the Court , Preliminary Decree and Final Decree are Passed
2 Preliminary Decree directing the X to pay the Mortgage amount and to redeem the mortgage with in stipulated time .On such payment it is directed in the Preliminary Decree that the Title Deeds shall be delivered to X ( from Court Records ) .The due amount was not paid as per decree by X and the Final Decree is passed . The EP filing time is there, for another
4 years . In case the Mortgaged Property is sold in Court Auction Proceedings in EP ,the Auction purchaser is entitled for delivery of Title Deeds or if the Mortgagor-X- himself pays the Mortgage amount to the Decree Holder , the Mortgagor-X is entitled for delivery of the title Deeds from the Court Records . On filing the mortgage Suit and filing the Mortgage original title Deeds along with Suit in to the Court , the matter is placed before the Court ,
the Preliminary Decree directions have to be followed and the Title deeds have to be delivered to the Party entitled to take delivery of original title Deed .
3 Recently X paid the amount in Bank One Time Settlement- Compromise . As per the Preliminary Decree the-X is entitled for Title Deeds from the Court records on his application before the Court . The X filed Petition for Delivery of Title Deeds to him and the Bank endorsed No objection for such delivery to the X . .The said Application of the-X is returned by the Court with endorsement that ;-" Part III Papers destroyed vide Gazette ".
4-The- X Filed the CD against the bank for delivery of original Title Deed and for damages
5-The Delivery of original title deeds now is not with in the Control of the Bank
6 As per the Court Destruction Rules , the Part III Records are destroyed by the Court , while the Limitation for filing the EP is there for another 4 years . As per the Court Destruction Rules, after certain period the Part – III Records ( including the Documents field by the parties ) will be destroyed
7 The Court proceedings are as per the Record Destruction Rules
8 As per the Mortgage Preliminary & Final decree , the Mortgage title deeds shall be delivered to the Mortgagor on his payment of Mortgage amount .
9 The Time for payment of mortgage due & claim for Title deeds is not so limited period, it can be paid at any time before the
10 The situation is that the Mortgage Decree and Title Deeds in the Court records are of special nature than other decrees in a suit .
11 The Bank obtained the CC of Title Deed and prepared to Certify that the Title Deeds is Destroyed in Court Proceedings , in addition to the Court endorsement .But the X is not accepting the same .
The X- Now claiming original Title Deeds and Damages from the Bank
Please suggest the course of action to the bank .
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