Bank to Pay Rs 3.5 Lakh for Losing Title Deeds of Home Loan Borrower..!

IDBI Bank has been directed by a consumer forum here to pay Rs. 3.5 lakh as compensation to a housing loan borrower for losing the title deeds of his flat.

The New Delhi District Consumer Disputes Redressal Forum also ordered IDBI Bank to issue a certificate stating that it had received various documents pertaining to the borrower's flat at Pitampura in North Delhi but had lost the same later.

While holding the bank to be "negligent" in handling the the borrower's documents, the bench presided by Mr. C. K. Chaturvedi said it should have "exercised the same prudence and care as it would do in case of its own property."

IDBI Bank while admitting that the documents were lost, had contended that loss of documents was not intentional & they were lost by the courier company in transit.

The forum, however, rejected the bank's contention saying "it can not split liability between it & the courier service" and directed it to pay compensation of Rs. 3 lakh to Mr. Kainth for harassment suffered by him and also awarded him Rs. 50,000 as litigation expenses.

Negligent in Care of Documents..!

"The opposite party (IDBI Bank) was negligent in taking proper care of the documents. Once it was aware of the nature of documents of title, it should have sent it to its own office in Bombay by a official messenger or /  an officer personally rather than through a courier.

The bench, also comprising its member Mr. S.R Chaudhary, said. "It had to exercise the same prudence & care as it would do in case of its own property in handling such documents. The case discloses utter deficiency on its part resulting in incalculable loss to the complainant (borrower)"

New Delhi District Consumer Disputes Redressal Forum also directed IDBI to get the lost documents reissued and duly certified by the DDA and the cooperative group housing society & to take all necessary steps to safeguard the borrower's interests.

The forum's order came on the plea of Delhi resident Mr. Narinder Kainth, who had alleged that IDBI Bank had lost the title documents from its custody.

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