Compensation -loss of original title deeds by the Bank

The complainant had taken home from SBI and submitted original sale deed and other documents with the Bank as security.

On 3.11.2016, the home loan was closed.  However, the Bank had lost the original title deeds.   The complainant was, therefore, compelled to file complaint for Rs.25 lakhs for compensation.

In the complaint, the Bank contended that since the certified copy of the title deed from the Sub-Registrar office was given, there was no actual loss or injury caused to the complainant.

In that context, the National Consumer Commission held –

1. the loss of documents of ownership is not venial or trivial. The wearer knows where the shoe pinched and the bank is terribly remiss in discharge of its duties.
2. the bank is liable to pay compensation because value of the property bound to be affected if the original title deed is lost by the Bank.

iii.        the legal title of the complainant is compromised with loss of original property documents and

1. the supply of certified copy of title deed does not take away the element of loss.

Order dated 19.8.2024 of the NCDRC in First Appeal No.1652 of 2017 of the State Bank of India  Vs. Dr. S. Sunil