Kerala

Idukki

CC/162/2018

Sebastain P D - Complainant(s)

Versus

Regional Manager State Bank Of India - Opp.Party(s)

Adv.K M Sanu

26 Dec 2019

ORDER

DATE OF FILING : 30/08/18

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 26^th day of December 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT.ASAMOL P. MEMBER

 

CC NO. 162/2018

Between

Complainant :1 . Sebastian P.D.,

Panachiyanickal House,

Kothayikunne Bhagam,

Thodupuzha P.O., Thodupuzha.

2 . Daisy Sebastian,

Panachiyanickal House,

Kothayikunne Bhagam,

Thodupuzha P.O., Thodupuzha.

(Both by Adv: K.M.Sanu)

And

Opposite Party : 1 . The State Bank of India,

Represented by Regional Manager,

Regional Office, Mangattukavala,

Thodupuzha East P.O.

2 . The Manager,

State Bank of India,

Thodupuzha Town Branch,

Thodupuzha P.O.

(Both by Adv: Jaimes Thomas and Adv. Joseph George)

 

O R D E R

SRI. S. GOPAKUMAR (PRESIDENT)

 

The case of the complainant is that,

 

The complainants who are husband and wife availed a housing loan from the opposite parties naming the State Bank of India (former State Bank of Tranvancore) to the extent of Rs.6,59,538/-. In order to secure the said loan the complainants deposited the original title documents of their landed property

(Cont....2)

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having an extent of 2.02 Acre comprised in Survey No.311/3B of Thodupuzha Village office. The property is situated in the heart of the Thodupuzha Town near to Private Bus Stand. The title documents contains the sale deed having No.892/2005 of Thodupuzha SRO and its prior documents such as sale deed No.2567/02, 3207/94 its tax receipts, possession certificate, location sketch etc, as demand by the opposite parties bank. The said loan have been repaid by the complainants on 28/06/14 and the complainants approached opposite parties bank for returning the above said documents. The title document having been lost or misplaced, were not returned to the complainants. For getting back these documents complainants approached the opposite parties bank so many times from 28/06/14 onwards. At last the complainants received a letter from the opposite parties bank dated 05/02/18 stating that the above said documents are irrecoverably lost from their hands. After the receipt of this letter complainants issued a notice to the opposite parties bank demanding their documents back along with compensation. Even after the acceptance of this notice, opposite parties has not took any steps to recover the documents.

 

Complainants further stated that, this property is having a resale value of more than 54 Lakhs. So many people are approaching for purchase of this property but they are withdrawing due to the non-availability of the original title deed. This caused much mental agony and hardships to the complainants and this family, Being aggrieved by the act of the opposite parties bank the complainants are before the Forum seeking the following relief .

 

1. To direct the opposite parties to pay Rs.19 Lakhs as compensation in live

   of original documents retained by them.

2. To direct the opposite parties to pay Rs.75,000/- as compensation for the

   mental agony and hardship caused to the complainants.

3. To direct the opposite parties to pay Rs.10,000/- as litigation cost.

    

   1. 1. 1. The complainants has been resisted by the opposite parties bank, which has admitted the loan extended to the complainants as well as its repayment. It is also admitted that the title documents of landed property having extent of 2.02 Acrs comprised in Survey No.311/3B of Thodupuzha Village and its prior deeds and other related documents were deposited with the opposite parties at the

(Cont....3)

1. 1. 1. 1.  

            -3-

            time of sanction of the loan. It is also not disputed that the above said documents are not traceable and it irrecoverably lost.

 

1. 1. 1. 1. 1. 1. Opposite parties further contented that the complainants has requested the opposite parties to issue a letter to him stating that the title deed is irrecoverably lost from the bank, as he wants to avail a new loan from another bank by creating charge on the same property. The above circumstances, the second opposite party had on 05/02/18 issued him a letter stating that the title deed of the complainants was deposited with the bank, there is no liability to the bank charged on the property covered by that deed and that deed was irrecoverably lost from the bank only to help the complainants to avail the new loan.

                   

Opposite parties further contented that they are ready to provide the certified copy of the lost title deed and prior deeds and to advertise the factors of loss of the documents in one or two news papers having vide circulation in the locality such a remedy was ratified by the Honourable Hight Court of Kerala in WP(c) No.6952/2008C, in a case of similar facts.

 

Opposite parties further contented that for selling the property the original title deed is not necessary. These are so many other methods to give such property as security to financial institutions even without the original title deed.

 

Evidence adduced by the complainants by way of proof affidavit and documents. Complainant was examined as PW1 and Ext.P1 and Ext.P2 were marked. ExtP1 is the letter issued by the second opposite party dated 05/02/18, Ext.P2(s) are the copy of demand notice and its postal receipt and acknowledgment card.

 

From the opposite parties side except the reply version no other evidence is adduced.

 

Heard both sides,

 

 

(Cont....4)

-4-

 

The point that arose for consideration is whether there is any deficiency in service from the part of opposite parties, and if so, for what relief the complainant is entitled to ?

 

The Point:- We have heard the counsel for both parties and had gone through the records.

 

The learned counsel for the opposite parties admitted that loss of title deed and other documents which is discussed above and they are ready to provide the certified copy of the title deed and prior deed. Moreover the opposite parties further stated that they are ready to advertise the facture of loss of the documents in one or two news papers having vide circular in the locality. By relying the order passed by the Honourable High Court in Thomas Muthoot Vs, State Bank of India (WP (c) No.6952 of 2008 (c), the learned counsel argued that the above said remedy/ solution was ratified by the Honourable High Court in this order.

 

It would there been seen that the opposite parties bank has lost or misplaced the original title documents of the landed property of the complainants. As observed by the Honourable National Commission in the case of Sheel Sohal and another Vs Axis Bank Ltd., case (III) 2018 CPJ (NC) 127, that the opposite parties bank ought to have kept the above said valuable documents in safe custody and ought to have ensured that the same are duly returned to the borrower after repayment of the loan. That having not been done, it is evident that opposite parties has been neglected or deficient in rendering service to the complainants who were their consumers.

 

The Honourable National Consumer Disputes Commission held in Rajesh Gupta Vs Axis Bank (IV) 2018 CPJ 2006 NC that opposite parties bank cannot take plea that documents which they failed to return of no value. Had that been so, there was no occasion for opposite parties to ask the complainants to deposit these documents for sanction of loan.

 

(Cont....5)

 

 

-5-

 

The facts of this case clearly establish that the opposite parties has failed to discharge their obligation towards their customer and have failed to return all the documents which were entrusted. The opposite parties cannot at this stage take the plea that the documents which they had failed to return were of no value. Had that been so, meaning thereby that if those documents which they have lost were of no consequence and no value, there was no occasion for the opposite parties to ask the complainants to deposit these documents for sanction of loan and for its continuance. Apparently, the documents have the value.

 

More importantly, it cannot be disputed that a property, if sold in the market, will not fetch its trace value, if the seller is not in a position to deliver the original title documents of the land to the purchaser. No purchaser will give full value of the land to the seller unless he is able to receive all the original title documents of the immovable property subject matter of the transaction. Therefore it cannot be disputed that there will be erosion in the market value of the property, if it is sold in the market without original title documents, though no evidence has been led by the complainants to prove what precisely is liking to be the loss, if the said plot is sold in the open market without original title deed.

 

In this case, even though the complainants failed to prove the present market value of the property which shows in the lost title deed, it is an admitted fact that this landed property is situated in the heart of Thodupuzha Town and is not disputed by the opposite parties.

 

Considering all the facts and circumstances of this case, the opposite parties in our opinion should pay sum of Rs.10 Lakhs as all inclusive compensation to the complainants for the loss caused to them by losing /misplacing the original title documents of landed property having a extent of 2.02 Arcs comprised in the survey No.311/3B of Thodupuzha Village and its prior document having No.892/2005 of SRO, Thodupuzha. The opposite parties

 

 

(Cont....6)

 

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directed to pay the above said amount to the complainants within one month from the date of receipt of the copy of this order, failing which it shall carry interest @ 9% per annum from the date of this order.

 

Pronounced in the Open Forum on this the 26^th day of December, 2019.

 

Sd/-

SRI. S. GOPAKUMAR (PRESIDENT)

Sd/-

SMT. ASAMOL P. (MEMBER)

 

APPENDIX

Depositions :

On the side of the Complainant :

PW1 - Daisy Sebastian

On the side of the Opposite Party :

Nil

Exhibits :

On the side of the Complainant :

Ext.P1 - The letter issued by the second opposite party dated 05/02/18, Ext.P2(s) -The copy of demand notice and its postal receipt and

acknowledgment card.

On the side of the Opposite Party :

Nil.

 

Forwarded by Order,

 

SENIOR SUPERINTENDENT