Delhi Couple Settles Rs 1.41 Crore Home Loan, Faces Bank’s Loss of Original Sale Deed
A Delhi couple has secured a compensation of Rs 15 lakh from their bank after it lost their original property documents following the repayment of a housing loan. The couple initially approached the Banking Ombudsman after repeated requests for the return of their title deeds went unanswered. The Ombudsman acknowledged the bank’s failure to trace the documents and awarded them Rs 5 lakh, which the couple deemed insufficient.
Background of the Case
In March 2018, the couple took a housing loan of Rs 1.41 crore from the bank to purchase property in New Delhi, mortgaging the title deeds as security. After repaying the loan three years later, they requested the return of their original documents. Despite multiple follow-ups, the bank failed to return the papers. In April 2021, the bank informed them that it could not locate the original deed, formally acknowledging the loss in July 2021.
Following this acknowledgment, the couple sought compensation. The bank provided a lawyer’s letter, a public notice, and a police report regarding the missing documents. On September 7, 2021, the couple escalated the matter to the Banking Ombudsman, which confirmed that the original papers had been deposited with the bank but were untraceable.
Compensation Awarded by the Consumer Commission
On January 18, 2022, the Banking Ombudsman awarded Rs 5 lakh as compensation. Dissatisfied with this amount, the couple filed a complaint with the Delhi State Consumer Disputes Redressal Commission, seeking Rs 1 crore for the loss of their documents and an additional Rs 1 lakh for mental distress. The bank contested the claim, labeling it excessive and legally untenable.
The commission found that the bank was responsible for the loss of the original property papers while they were in its custody. It noted that the bank’s actions, including filing a police report and issuing a public notice, did not absolve it of its duty to safeguard the documents. The commission referenced a 2023 case involving ICICI Bank to emphasize the implications of losing such critical documents, which could hinder the couple’s ability to manage their property.
The commission ultimately ruled that the bank’s failure to return the original title deed warranted significant compensation. It ordered the bank to pay Rs 15 lakh to the couple and an additional Rs 50,000 for financial and legal prejudices, along with litigation costs. The bank was given two months to comply with the order, failing which it would incur interest on the total amount at 9% per annum from the date the couple repaid the loan.
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