Delhi

StateCommission

CC/07/199

Sh. Prakesh Chandra Tripathi - Complainant(s)

Versus

The Hong Kong and Shanghai Banking Corporation Ltd. - Opp.Party(s)

18 Feb 2016

ORDER

IN THE STATE COMMISSION: DELHI

(Constituted under Section 9 of the Consumer Protection Act, 1986)

Date of Decision: 18.02.2016

Complaint Case No. 199/2007

In the matter of:

Shri Prakash Chandra Tripathi

R/o C-32, Kanchan Changa Apt

90, I.P.Ext., Madhu Vihar

Delhi – 110 092                                   ………….Complainant

         

•  

 

M/s The Hong Kong and Shanghai            

Banking Corporation Limited

25, Barakhamba Road,

New Delhi – 110 001                            ………Opposite Parties /

Respondents

 

CORAM

N P KAUSHIK              -        MEMBER (JUDICIAL)

1. Whether reporters of local newspaper be allowed to see the judgment?               Yes
2. To be referred to the reporter or not?                                                            Yes

 

N P KAUSHIK – MEMBER (JUDICIAL)

 

Judgment

1. Facts of the complaint are not in dispute.
2. Complainant Sh. Prakash Chandra Tripathi applied for a home loan of Rs. 9,00,000/- from Hong Kong and Shanghai Banking Corporation Limited ( in short the OP bank) on receipt of a phone call from its Marketing Executive. Home loan account of the complainant was opened with the OP bank.  Loan was sanctioned after deduction of service charges.  House bearing No. C-32, Kanchan Janga Group Housing Society at 90, I.P. Extension, Madhu Vihar, Delhi – 110 092 was purchased.  Consideration of the house was Rs. 10,00,000/-.  Out of this, an amount of Rs. 8,83,000/- was paid by the OP bank.
3. OP bank took all the title deeds from the complainant as a part of mortgage.  Demand Draft for an amount of Rs. 23,400/- in favour of DDA was also taken from the complainant.  This amount was taken for conversion of the property from lease hold to free hold.  OP bank told the complainant that after getting the property converted to free hold, it would retain the conveyance deed as part of mortgage.  The documents taken by the OP bank from the complainant are detailed as under:-

Complainant submitted that conveyance deed, converting the property from lease hold to free hold, issued by the DDA was also retained by the OP bank.

4. Loan was to be repaid by the complainant in a period of 15 years.  Complainant continued paying the instalments regularly.  In March 2006, complainant prepaid the entire loan amount and put an end to the mortgage of the property.  OP bank acknowledged the repayment of loan and released its lien on the said property. Letter dated 22.03.2006 was issued by the OP bank in this behalf.
5. Grievance of the complainant is that the OP bank failed to return him the ownership documents referred to above.  He wrote several letters and made telephonic calls.  He also visited the OP bank several times.  E-mails were sent.  OP bank did not give any response.  The employee of the OP bank named Sh. Rajeev, in December 2006, informed the complainant that the ownership papers were lost by the OP bank.  A copy of the complaint/certificate was issued by the police of MRA Marg, Police Station, Mumbai on 19.12.2006 in this behalf.  The same is placed on record.  OP bank kept on assuring the complainant verbally of taking necessary steps for the transfer of the property in his name.  Complainant stated that he had suffered harassment and mental agony.  He had been put to economic loss as his property could not grow.  Complainant suspected that the OP bank had misappropriated the documents.  Complainant has claimed a compensation to the tune of Rupees One Crore which according to him is also the market value of the property.  Complainant has also sought directions to the OP bank to disclose if there are other victims like him whose title deeds are lost/misplaced/ misappropriated by the OP bank. 
6. OP in its written version stated that the documents have been misplaced inadvertently.  It was only a bonafide mistake.  OP bank always wanted and still wants to return the same to the complainant.
7. OP bank denied any misappropriation or fraud or breach of trust on its part. 
8. Parties filed affidavits in support of their contentions.  Arguments in writing have also been placed on record.  We have heard the arguments addressed by the counsels for the parties. 
9. The entire case of the complainant stands admitted by the OP bank.  Contention of the OP bank is that the documents have been misplaced out of inadvertence.  For this reason alone, the OP bank is not in a position to return the same to the complainant. 
10. Complainant handed over the documents to the OP bank in the year 2002 as a part of mortgage of the house in question.  Complainant repaid the entire loan in March 2006.  He has been waiting for the return of his documents for the last 10 years.  No efforts have been made by the OP bank for reconstruction of the documents.   Obviously the complainant is not in a position to deal with the property in so far as its sale, mortgage, gift or a transaction of like nature is concerned.  OP bank has clearly been ‘deficient in service’ when it failed to return the documents in question.  A lot of inconvenience, harassment and mental torture has been caused to the complainant.  We, therefore, direct the OP bank to pay to the complainant as under:-
    1. OP bank shall pay to the complainant a compensation to the tune of Rs. 5,00,000/- (five lacs) towards inconvenience, harassment and mental agony caused to the complainant.
    2. OP bank shall pay to the complainant an amount of Rs. 25,000/- towards reconstruction of the documents.
    3. OP bank shall issue a certificate in favour of the complainant stating that the aforesaid documents have been lost at its end.
    4. OP bank shall indemnify the complaint in the event the complainant suffers any loss in future for misappropriation of the documents, if any, by a third person.
    5. OP bank shall pay litigation charges of Rs. 1,00,000/- to the complainant.

All the above said amounts shall be paid within a period of 30 days from today, failing which the complainant shall be entitled to an interest @ 18% p.a. on the amounts accruing after the expiry of the period of 30 days.

Certificate mentioned at para 9(c) alone shall also be issued by the OP bank within a period of 30 days.

11. Complaint is accordingly disposed of.  File be sent to records.

 

(N P Kaushik)

Member (Judicial)