The National Consumer Disputes Redressal Commission (NCDRC), with Mr. Subhash Chandra (Presiding Member) and Dr. Sadhna Shanker (Member), has found the State Bank of Travancore (SBT) liable for failing to safeguard the original title deed provided by the complainant as collateral for a housing loan.
Case Summary:
The complainant secured a housing loan from SBT and submitted various documents, including the original title deed, as security. After repaying the loan, the complainant sought to retrieve the title deed, only to discover it was missing. Upset by this, the complainant filed a consumer complaint with the State Consumer Disputes Redressal Commission, Kerala.
The State Commission found the bank at fault and ordered it to compensate the complainant with Rs. 5,00,000/-. Dissatisfied with this decision, the bank appealed to the NCDRC.
NCDRC Observations:
The NCDRC noted that SBT admitted to losing the original title deed. While the bank argued that it had made sincere efforts to find the document and had provided a certified copy from the Sub-Registrar’s office, the complainant pointed out that the loss of the original deed had reduced the property’s value and hindered future loan opportunities.
The NCDRC agreed that the bank’s failure to protect the original title deed constituted a deficiency in service, as the bank was responsible for the safekeeping of such documents. The provision of certified copies did not rectify the loss, as it compromised the complainant’s legal title. The NCDRC referred to previous cases where the loss of ownership documents was deemed a serious issue, and banks were held accountable for compensating the affected parties.
Citing cases like Pooja Pincha & Anr. Vs. State Bank of India and Citi Bank & Ors. Vs. Ramesh Kalyan Durg & Ors., the NCDRC upheld the State Commission’s decision, concluding that the compensation awarded was fair and justified. Therefore, the NCDRC dismissed the bank’s appeal.
Posted and reproduced in Public Interest by
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