The case of the complainants in brief is that the complainants were the policy holders of the O.P. Life Insurance Corporation of India and Life Insurance Housing finance Ltd. vide policy no. 445210312 that was obtained on 09.01.2009 from the O.P. no.3 at Siliguri, District -Darjeeling for an assured sum of Rs. 1,80,000/- only. It is stated in the petition of complaint that the complainant no.1 being a intending purchaser approached the Area Manager, LIC Housing Finance Limited the O.P. no. 2 to provide housing loan and to consider the builder’s agreement, money receipts, allotment letter and other co related documents. After considering the said fact O.P. no. 2 approved housing loan of Rs. 22,60,000/- only in favour of the complainants on the specific terms and conditions subject to furnishing LIC Policy Certificates for easy reimbursement of the said housing loan by sending approval letter dated 30.05.2012. Subsequently, on 20^th July, 2012, the complainant no. 2 deposited five numbers of LIC Policies in favour of O.P. No. 3. Subsequently the complainant no. 1 purchased one self contained flat at New Jessore Road, Kolkata - 700132. Thereafter the O.P. no. 2 duly collected the original registered sale deed being no. 16214 of 2012 from the concerned registration office for the purpose of mortgage of the said flat of the complainants. It is further stated in the petition of complaint that after passing five years from the sanctioned of the said housing loan, the complainant no. 1 duly repay the said housing loan by making payment of Rs. 19,70,057/-  on 24.05.2017 in respect of her loan account no. 210200000794 with O.P. No. 2. Thereafter, instead of issuing the ‘No Outstanding’ Certificate, the O.P. No. 2 handed over two LIC Policies being No. 42712018 and 428146619 to the complainants on 23.06.2017 and the money receipt, original registered sale deed, demand letter dated 12.06.2012, allotment letter dated 07.03.2012 and one unregistered builder agreement to the complainant no. 1 and informed the complainants that they have misplaced the policy certificates deposited to them by the complainants. Subsequently, the O.P. No. 2 acknowledged the numbers of policies which were missing from the custody of OP no 3 in the ‘No Outstanding’ certificate dated 23.06.2017. Thereafter, the complainant no. 2 on several occasions requested the O.P. No. 2 to hand over the aforesaid five policies but as the concerned office of O.P. No. 2 does not pay any heed to that effect. The complainants e-mailed their aforesaid misplacement of the policies from the custody of complainant no. 2 to the Officer-in-Charge, LIC Housing Finance Ltd., Kolkata – 700072 and requested them to hand over those five policies which were already matured but the LIC Housing Finance Ltd. did nothing to that effect. Finding no other alternative, the complainant on 21.04.2019 requested the O.Ps. to refund the maturity amount of Rs. 1,80,000/- along with interest @ 18% per annum by sending an advocate’s letter dated 21.01.2019 but O.Ps. did not turn up. Hence, this case.

The complainants filed this case praying for direction upon the O.Ps. to refund Rs. 1,80,000/- against the Policy No. 455210312 along with statutory interest, to hand over the LIC Policy No. 454537530 of Rs. 2,00,000/-, LIC Policy No. 454525699 of Rs. 4,00,000/- and Policy No. 453699501 of Rs. 2,00,000/- to pay Rs. 5,00,000/- towards compensation and Rs. 50,000/- towards cost of litigation.

Notice has been served upon O.P. Nos. 1, 2 and 3, none appears on behalf of them. Hence, the case was proceeded ex-parte against O.P. Nos. 1, 2 and 3 vide Order dated 18.11.2021.

O.P. No. 4 contested this case by filing written version stating that the O.P. No. 4 is a financial institute engages in providing home loan/credit facilities to the persons who intends to avail such loan on certain terms and conditions. On receipt of the application for availing loan by the complainant no. 1, the O.P. No. 4 made necessary search in respect of the property being Flat No. 202, 2^nd Floor, “Shashti Aparnaloy”, New Jessore Road, Kolkata – 700132 and sanctioned a loan amount of Rs. 22,60,000/- and disbursed the same vide Loan Account No. 210200000794 by the sanctioned letter dated 30.06.2012 in favour of the complainant. It is further stated by the O.P. No. 4 that at the time of sanctioned of the loan, the complainants have deposited some policy documents of Life Insurance Corporation of India as security of the loan which the O.Ps. LIC Housing Finance Ltd. have sent to the office of O.P. No. 3 for necessary assignment and the same were received by the O.P. No. 3 on 20.07.2012. Since the complainant no. 1 has paid the entire loan amount as premature as such the O.P. - LIC Housing Finance Ltd. issued a No Claim Certificate and handed over all original documents relating to the property mortgaged by the complainant no. 1 with two policy documents of the Life Insurance Corporation of India vide Letter dated 23.06.2017. It is further stated by the O.P. No. 4 that at the time of issuing the said letter dated 23.06.2017, the O.P. No. 2 clearly mentioned in the said letter that five policies have not been handed over to the complainant no. 1. In this regard, the O.P. No. 4 further stated that the five missing policies were identical and with the policies which they have sent to the O.P. No. 3 for making necessary assignment. The O.P. - LIC Housing Finance Ltd. has no documents/information that same are received from the O.P. No. 3 after assignment. However, the O.P. - LIC Housing Finance Ltd. has no intention to harass the complainants and if require they are ready to observe all necessary formalities for issuance of duplicate policy certificate by the O.P. Nos. 1 and 3. Accordingly, the O.P. No. 4 prayed for dismissal of the case.

                                                                                          Points for determination

1. Whether there is deficiency in service on the part of the O.Ps.
2. Whether complainant is entitled to get W.V as prayed for.

Decision with reasons

Point no. 1

Complainant alleged that on 20^th July, 2012 as per the advice of the Area Manager, LIC Housing Finance Ltd., the O.P. 2, the complainant no. 2 deposited 7(seven) numbers of LIC Policy to the Branch Manager LIC Siliguri Branch, the OP no. 3, for the purpose of obtaining a housing construction loan disbursed by the O.P. No. 2 but after liquidation of the said loan, the said O.P. No. 3 failed to return the said policy document to the complainants.

O.P. 1 to 3 did not contest this case inspite of service of notice but O.P. No. 4 contested this case stating inter-alia that O.P. No. 2 issuing a letter dated 23.06.2017 mentioned that five policies have not handed over to the complainant no. 1 and also stated that the missing five policies are identical and with the policies which they have sent to the O.P. No. 3 for making necessary assignment. O.P. No. 4 further stated that O.P. – LIC Housing Finance Ltd. have not document/information that the same are received from the O.P. 3 after assignment.

On perusal of the record, it appears that OP no. 2 provided housing loan of Rs. 22,60,000/- to the complainant no. 1. Subsequently, the complainant no. 1 made payment of Rs. 19,70,057/- on 24.05.2017 and requested the O.P. no. 2 to issue the No Outstanding Certificate  in respect of a Loan Account lying with the O.P. no. 2. Thereafter the O.P. 2 by sending letter dated 23.06.2017 stated that since the outstanding amount was fully repaid by the Complainants, therefore, they have no claim, right title or interest of the property of the Complainant anymore and O.Ps. – LIC Housing Finance Ltd. handed over the complainants two LIC Policies being no. 42712018 and 428146619, the money receipt, original registered sale deed, demand letter dated 12.06.2012, allotment letter dated 07.03.2012 and one unregistered builder agreement with the complainant no. 1. Admittedly, O.P. 2 informed the event of misplaced of the five Policy Certificates deposited by the complainant no. 2 in the custody of OP no. 3.

From the aforesaid discussion, it is crystal clear that the five policies of the complainants have not been handed over to the complainants which is a glaring example of deficiency in service on the part of the O.Ps. It is, however mandatory to deposit the original policy documents on maturity of the same. Therefore, duplicate document will not serve the purpose unless and until the same be treated as good as original. In our considered opinion, the O.P. No. 4 shall arrange for endorsement by the issuing authority on the duplicate documents that the same shall be treated as original documents.

Point No. 1 is decided accordingly.

Point No. 2

On perusal of the record, it appears that complainants repaid the housing loan by making payment of Rs. 19,70,057/- on 24.05.2017. Thereafter, the complainants have suffered harassment, mental agony and pain. Therefore, O.Ps. are liable to pay to the tune of Rs. 50,000/- towards the compensation.

Further, the O.Ps. compelled the complainants to file the instant case as they took no such step so that the complainants might get the documents after liquidation of the loan and therefore they are liable to pay the cost of litigation.

Point No. 2 is decided accordingly.

In the result, petition of complaint succeeds.

Hence, it is,

Ordered

      that the complaint case being No. CC/112/2019 is allowed ex-parte against O.P. Nos. 1, 2 and 3 with cost and is allowed on contest against O.P. No. 4 with cost.

O.Ps. are jointly and severally directed to issue duplicate policy certificate being Nos. 455210312, 454537530, 454525699, 453699501, 452299061 that shall be treated as original documents in favour of the complainants within 45 days from this date of order.

O.Ps. are further directed to pay Rs. 50,000/- towards compensation to the complainants and Rs. 30,000/- towards litigation cost to the complainants within 45 days from this date of order.

Let a plain copy be given to the parties free of cost as per CPR.

Dictated and corrected by

[HON'BLE MRS. Sagarika Sarkar]
MEMBER