The State Bank of India (SBI) told the Gujarat High Court on Monday that the bank has issued a ‘no dues’ certificate to a borrower of a crop loan, which was withheld by the bank over the non-payment of dues worth 31 paise. Senior advocate Kamal Trivedi, representing SBI, submitted before the High Court that a “confusion” had led to the non-issuance of the ‘no dues’ certificate to the original borrower, that resulted in non-mutation of a land parcel for the subsequent buyers of the land. On April 27, SBI had drawn the High Court’s ire during the hearing of a petition moved by two persons - Rakesh and Manoj Verma - after the bank failed to issue the required certificate. The petitioners in the case had moved the Gujarat HC after they purchased a plot of agricultural land at Sanand from the land’s original owner, who had taken Rs 4.55 lakh as crop loans from SBI. Owing to the outstanding dues incurred by the original owner of the land the land mutation application submitted by Rakesh and Manoj to transfer the land in their name was rejected. Following which the duo had approached the court. According to their advocate Jinesh Kapadia, the original owners had paid off the outstanding dues, leaving no hurdles for mutation of land records in the buyer’s favour but SBI’s non-issuance of the no dues certificate had kept the mutation pending. Advocate Trivedi, representing SBI, submitted before the court that the bank could not issue a no dues certificate because of a letter they received from the original owners directing it not to do so. “It was not the endeavour of the respondent bank to not issue no-dues certificate in spite of payment of the entire dues,” SBI told the court. Explaining how the confusion arose, Trivedi said that the original land owners took objection before the revenue authority and instructed that the mutation entries not be carried out, and the SoP of the bank requires it to take care of the borrowers and not of anyone else. Taking on record the submissions made by SBI, Justice Bhargav Karia told Trivedi, “Whatever it may be, you could have issued the no dues certificate in the name of the borrower and sent it to him and you could’ve told him (the land purchaser-petitioners) that you’ve already issued the no dues certificate to the borrower, you (petitioner) go to the borrower. That would've been the easiest way. Why should you indulge in interse dispute between the parties, that is not the job of the bank.” Following SBI’s submission on Monday, the original petitioners withdrew the petition, and the court disposed of the matter.
