Bank asked to pay Rs 1.5 lakh for losing original papers of mortgaged property

  • Shailee Dogra, Hindustan Times, Chandigarh
  • Updated: Sep 02, 2014 12:51 IST

The district consumer disputes redressal forum, Chandigarh, has directed the Andhra Bank to pay Rs 1.5 lakh as compensation to its former employee for losing original property papers of a mortgaged property.

Coming to aid of Raj Kumar Dewan, 65, a resident of Phase 1, SAS Nagar, who was an officer with the Andhra Bank and had retired in the year 2001, consumer forum also directed the Andhra Bank to pay Rs 11,000 as cost of litigation.

Pulling up the bank for its lackadaisical attitude to deal with Dewan’s complaint, the consumer forum directed the bank to “return the conveyance deed and all other relevant documents and in the event of its failure, to issue an appropriate certificate to the complainant stating that the various documents received by it in respect of the house in question have been lost/misplaced by it”.

The bank as per the directions would also have to lodge an FIR/DDR with the police about the loss of the documents and get published advertisements in two national dailies about the loss of title documents. Not just this, the bank would also “write to the concerned departments about the loss of documents and reimburse the expenses in obtaining the certified/duplicate copies from them to the complainant”.

Dewan in his complaint said that he had taken a house loan of Rs 40,000 from the bank in the year 1981 by equitable mortgage of his house in Phase 1, SAS Nagar, by depositing original conveyance deed, besides all other relevant documents in respect of the property. He repaid the loan and no dues certificate was issued in February 2013, however, the original documents of the property were not returned by the bank.

Andhra Bank admitted that the said documents were misplaced and said that they were unable to locate the conveyance deed and other documents, including original payment receipts in respect of the said property. The bank sought dismissal of the complaint terming it as “merely a misuse of process of law”.

The consumer forum presided over by PL Ahuja on August 28, said, “Bank’s explanation that the documents in question have been tied with some other file and the complainant doesn’t need them, cannot be accepted. Till now, the bank has not lodged any FIR/DDR with the police about the loss of the conveyance deed and other documents relating to the title of the property of the complainant. In the absence of the document of title, we agree with the contention of the complainant that his property has become practically non-transferable.”

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