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2022 (9) TMI 208 - MADRAS HIGH COURTNon-disbursal of loan due to tax default - loan have not been granted, for the reasons that there is arrears of tax by the petitioner's father - When the petitioner applied for encumbrance certificate with respect to the property, it was found that no such charge has created, made as reflected in the encumbrance certificate - HELD THAT:- Finding that the family property is being produced as collateral security and huge sums of loan around Rs.4,56,00,000/- to be obtained based on the property, and the Department will be left with no source for recovery, hence they have taken precautionary measure on sending the objections, for creating any charge, lien or alienation to the property and send representation dated 22.08.2022 to the Sub Registrar Office, Eranial, which is recorded and the same is also reflected in the Encumbrance Certificate. Hence in the interest of revenue, such restriction has been imposed. The Document No.455/2001 was found without any Encumbrance. Hence processed the loan application, at that time, a communication received from the second respondent on 03.06.2022 informing about the lien and restriction created on the property based on which the loan put on hold. Since the disbursement of loan was based on the public money, considering the public interest and that of the Bank, withheld the loan granted to the petitioner, if the petitioner is able to provide equal alternate property as security without any encumbrance, the same can be considered, with the present property, the loan cannot be disbursed. Petition disposed off.
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