Kochi: The Kerala High Court has held that title deed deposited at the time of availing housing loan cannot be retained by primary co-operative societies once the loan is fully repaid.
Upholding a Single Judge verdict, a Division Bench held that there was no merit in the appeal filed by the managing director, Kerala State Co-Operative Housing Federation.
The Single Judge had held that once a member cleared the liability, he had every right to get back the title deed. The assistant registrar, cooperative societies, submitted that title deeds were in fact surrendered before the president of the apex federation - Pattanakkad Housing Co-operative Society - in connection with the financial assistance availed by the primary societies from the federation citing that loan was actually sanctioned by it.
The court held that the federation had failed to substantiate that there was a valid contract between it and the member of the primary society, authorising it to keep the title deeds even after satisfaction of the loan liability.
