Sir, If an employee of a bank is dismissed from bank under charges of fraud and a police case is registered for the same. Also the employee has housing loan with the bank. He is asked to either convert it into public rate provided he has income to meet the EMI or settle the loan completely. The employee cleared the housing loan. Is the bank liable to release his documents and mortgage of housing loan or can the bank keep the documents and deny the release of property due to pending FIR against the Ex- employee
From India, Bengaluru
From India, Bengaluru
Dear friend,
The decision and action of the bank terminating the services of the delinquent employee by means of a parallel departmental disciplinary proceedings and asking the dismissed employee to continue repayment of the housing loan granted while he was in service with a higher rate of interest applicable to the general public or to settle the loan forthwith indicate that the relationship between them has since been converted into that of debtor and creditor only. Therefore, when the debtor has cleared the debt fully to the satisfaction of the creditor, the creditor has no locus standi to refuse to release the mortgaged property on the ground of pending criminal case against him for any service-related offences.
From India, Salem
6016The decision and action of the bank terminating the services of the delinquent employee by means of a parallel departmental disciplinary proceedings and asking the dismissed employee to continue repayment of the housing loan granted while he was in service with a higher rate of interest applicable to the general public or to settle the loan forthwith indicate that the relationship between them has since been converted into that of debtor and creditor only. Therefore, when the debtor has cleared the debt fully to the satisfaction of the creditor, the creditor has no locus standi to refuse to release the mortgaged property on the ground of pending criminal case against him for any service-related offences.
From India, Salem
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