DISTRICT CONSUMER DISPUTES REDRESSAL FORUM (CENTRAL)
ISBT KASHMERE GATE DELHI
CC/300/2014
No. DF/ Central/
Smt Bindu Roy, W/o Shri Himansu Roy,
R/o 22 – A, IInd Floor, Kalusarai, Hauzkhas,
New Delhi - 110016
…..COMPLAINANT
VERSUS
The Manager Operation, LIC Housing Finance Ltd.,
Laxmi Insurance Building, Asaf Ali Road, Delhi - 2
…..OPPOSITE PARTY
Quorum: Ms. Rekha Rani, President
Mrs. Manju Bala Sharma, Member
Shri R.S. Nagar, Member
ORDER November 2018
Ms. Rekha Rani, President
1. Instant complaint has been filed by the complainant u/s sec 12 of the Consumer Protection Act 1986 pleading therein that complainant applied for house loan of Rs. 1 Lac vide application no. 1111544 dated 09/12/1994 for the purchase of the House No. 22/A IInd Floor, Kalusarai, New Delhi to the OP who handed over a cheque of Rs. 1 Lac as loan amount before the Registering authority to the complainant on 06/04/1995 at the time of registering the sale deed of the house property as collateral security/ Mortgage. OP issued a certificate that it had retained the original title deed towards mortgage of the house. Complainant sought further loan of Rs. 2 Lac from OP for renovation of
the new purchased flat. It was sanctioned by the OP. Complainant has paid entire loan amount to the OP and OP has issued a full and final payment receipts No. 0002141 dated 06/08/2010. On 21/10/2010 complainant requested OP to return original documents followed by reminder letters dated 12/05/2011, 19/09/2013 and 26/04/2013 but OP has not returned the original documents. Hence, the instant complaint seeking direction to OP to return the original registered sale deed, Rs. 15,00,000/- as damages for not returning the original sale deed, Rs. 500000/- as compensation for causing mental agony and deficiency in service.
2. OP contested the claim vide its reply pleading therein that the claim is barred by limitation. Ii is also stated that complainant never deposited original sale deed with the OP and has filed the present case with malafide objective.
3. Both the parties filed their evidence by way of affidavits. They have also filed written arguments.
4. We have heard Shri R.S. Sharma Counsel for Complainant, Shri Mani Arora Counsel for OP.
5. It was contented on behalf of the OP that the complaint is barred by limitation. Complainant’s case is that on payment of entire loan amount by her to the OP and on issuance of full and final payment receipts No. 0002141 dated 06/08/2010 by the OP she requested OP on 21/10/2010 to return her original documents which was not done. She reiterated her request vide letters dated 12/05/2011, 19/09/2013 and 26/04/2014 but the OP did not return her title deeds.
6. OP has been playing hide and seek with the complainant. Even before this Forum it has taken a conflicting stand. In para 03 of the complaint complainant has clearly pleaded that OP had issued a certificate to her that it had retained original sale deed with it as collateral security/mortgage copy of the certificate was placed on record as Annexure A-2. In corresponding para 3 of its reply OP has not denied that it did not issue the said certificate although it has vaguely and ambiguously pleaded that complainant submitted some original documents. It is also pleaded that complainant was reminded repeatedly that she had to submit original sale deed after registration of the property but she did not do so. OP has not proved that it ever wrote to the complainant that original sale deed was not deposited by her with the bank and that she was required to deposit sale deed after registration.
7. OP vide its certificate bearing no. LICHFL/95/5/01-101-9008 dated 31/01/96 copy whereof was placed on record as Annexure A – 2 clearly acknowledged that :
‘’This is to certify that Smt. Bindu Roy and Sh. Himanshu Prasad Roy have taken a loan of Rs. 1,00,000/- from us.The property (House No. 22 MCD 22A, IInd Floor, Kalu Sarai, New Delhi) is mortgaged with us.All the original documents of the property are mortgaged with us against the above mentioned loan A/C.’’
It may be noted that the OP acknowledged that all original documents of the property were mortgaged by the complainant with the OP. Vide Annexure A-2.
8. On repayment of entire loan amount by her to OP complainant wrote several letters to the OP for return of original documents which letters are exhibit A– 6 dated 21/10/2010, exhibit A – 7 dated 12/05/2011, exhibit A – 8 dated 19/09/2013 and exhibit A – 9 dated 26/04/2014. It may also be noted that said letters were duly received by the OP vide its acknowledgement which bears its signatures seal and stamp. OP did not bother to reply to these letters nor intimated the complainant about the loss of the title documents. As such instant complaint cannot be said to be barred by limitation.
9. It is difficult to believe plea of the OP that it did not receive original sale deed from the complainant. No bank would ever extend loan against equitable mortgage of the property without insisting upon deposit of all title documents to safeguard its own interest.
10. It can also not be disputed that on account of loss of the title deeds there would be erosion in the resale value of the property.
11. It is thus very clear that there has been deficiency in service on the part of the OP as the sale deed has been lost from its custody. OP is therefore liable to compensate the complainant suitably in this regard.
12. National Commission in Indian Overseas Bank, Hyderabad v. K. Bal Reddy in R.P. No. 3800 of 2014 on 15/10/2014 upheld the awarded amount of Rs. 5 Lacs by the State Commission by way of compensation for loss of title deed of the property by observing that on account of loss of the title deed resale value of the property would be eroded.
13. In Sheel Sohan & Anr. Vs.Axis Bank Limited in Consumer Case No. 1021 of 2016 vide order dated 08 Jan 2018 National Commission awarded compensation of Rs. 10 Lacs for loss of original title documents of the property.
14. In view of the aforesaid the instant complaint is allowed. OP is directed to pay a sum of Rs. 10 Lac as all inclusive compensation to the complainant for loss caused to her by losing the original sale deed of her property. The OP is directed to pay this amount to the complainant within eight weeks from today failing which it shall carry interest @ 9% per annum from the said date. Copy of this order be sent to the parties as statutorily required. File be consigned to record room.
Announced on this 3rd Day of November 2018.
