PER SHRI.ATUL D.ALSI, HON’BLE PRESIDENT 1. The complainant has filed this complaint against non return of mortgage documents even after repayment of loan and foreclosure of loan account and thereby praying for compensation of Rs.4,90,000/- with costs. Facts, in brief, are as under.. 2. The complainant availed a housing loan for construction of his house as per loan account No.2399828730786 against equitable mortgage of sale-deed bearing No.2554/91 dated 23/8/1991. The complainant paid last repayment amount of Rs.40,000/- on 30/10/2017 and the OP bank also closed loan account of the complainant and issued no due certificate for the foreclosure of loan account on 27/12/2017 in favour of complainant. The complainant, after foreclosure of the loan account, demanded the release of equitable mortgage documents of property on 7/4/2020 and 4/8/2020 and also by issuing legal notice through Adv. Kullarwar on 18/8/2020, but the OP Bank failed to release the mortgage documents. Hence the petition is filed .. 3. After admission of the complaint, the notice was duly served on the OP Bank, but it chose to remain absent and did not file any reply. Hence the case proceeded ex-parte against the OP Bank vide order dated 17/01/2021 passed by this Commission below Exh.1. 4. The complainant has filed no due certificate dated 27/12/2017 issued by the OP Bank in favour of the complainant at Exh.3 in respect of foreclosure of the loan account. The complainant also filed evidence by way of affidavit at Exh.9. 5. We have perused the complaint, affidavits and supporting documents filed by the complainant. After careful scrutiny thereof, we record our findings to the issue of deficiency in service as under, REASONING
6. On perusal of the No due certificate dated 27/12/2017 issued by the OP Bank in favour of the complainant towards closure of the loan account, which the complainant has filed at Exh.3, it is crystal clear that the complainant has cleared the housing loan taken by him from the OP. From the documents placed on record by the complainant, it is also evident that after foreclosure of the loan account, the complainant has demanded the release of equitable mortgage documents of property orally and also by issuing legal notice through Adv. Kullarwar on 18/8/2020. In this scenario, it is the duty of the OP Bank to release the equitable mortgage documents after completion of return of document formalities, but the OP Bank failed to do so, and it clearly amounts to deficiency in service.
Therefore, this Commission is of the considered view that the OP Bank requires to be directed to release the equitable mortgage documents kept with it against the loan for which it has issued no due certificate dated 27/12/2017, which is filed by the complainant on record at Exh.3. The complainant must have suffered mental agony, due to non-release of mortgage documents and was also required to file and pursue this complaint, as such, he is also entitled to adequate compensation for mental agony and cost. 7. In furtherance of our observations as above, we proceed to pass the following order.. ORDER - The complaint No.CC/20/98 is partly allowed.
- The OP Bank shall release the equitable mortgage documents in favour of complainant, after completing necessary formalities for which no due certificate dated 27/12/2017 has been issued by OP-Bank.
- The OP Bank shall also pay to the complainant an amount of Rs. 20,000/- towards compensation for mental agony Rs. 10,000/- towards cost of litigation.
- Copy of the order be furnished to the parties free of cost.
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