Forum directs PNB to pay Rs 47K for lost title deed

Our Correspondent

Hoshiarpur, September 19

The District Consumer Disputes Redressal Forum, Hoshiarpur, decided on a complaint pertaining to loss of title deed of a property kept by the Punjab National Bank against a loan of Rs1,50,000 in favour of the complainant. The loan was taken by way of Equitable Mortgage of title deed in 1992.

Wife of Prof Jagdish Raj Sharma, Amita Sharma, a resident of Shalimar Nagar here, had filed a complaint against PNB. She was an employee of the bank and took retirement in October 2016. Loans were granted to the complainant against the said mortgage. Gradually, she repaid her loans during the tenure of her service and clearance certificates were issued.

The bank was to hand over the original title deed at the time of clearance of loan. The complainant was assured that the same would be returned to her within a short period of time. She waited for a few months but the original title deed was not returned despite several visits and requests.

Thereafter, a legal notice was served on the bank in December 2017 and a reminder in February 2018, but all in vain. The bank contested the complaint saying that the title deed might have been lost in the process of shifting of account to the branch office. Another reason could be loss of the deed from the complainant in the process of getting its photocopy.

The forum opined, the original sale deed of immovable property was a valuable security. It was incumbent on the bank to keep the sale deed and other documents in safe custody and return them to the complainant as soon as the loan was repaid.

The forum decided, “It is clear that the sale deed of the property is an important document and the bank has been negligent in rendering its services to the complainant as it didn’t keep the aforesaid security in safe custody and couldn’t return the same after the loan was repaid.”

The forum directed the bank to execute the re-conveyance deed of the property in favour of the complainant. It has also directed the bank to pay Rs40,000 as compensation for causing mental stress to the complainant and pay Rs7,500 as litigation expenses.