Complainants:

1. Sri. K. Krishna Rao

S/o Late K. Saibanna

Aged about 49 years

2. Smt. K. Sunanda

W/o Sri. K. Krishna Rao

Aged about 40 years

Both are residing a No.915

Ground Floor, First ‘D’ Main Road

Eleventh Cross, Girinagar

Second Phase, Banashankari Third Stage

BANGALORE-560 085

V/s

Opposite Party:
The Manager

IDBI Bank Limited

No.326, ‘Ashwini Complex’

Eighty Feet Road, Sixth Main

Indirangar

Bangalore-560 038


O R D E R

SRI.D. KRISHNAPPA, PRESIDENT:

The grievance of the complainants against the Op in brief is that they had taken a loan from the Op for purchase of a property and that sale deed of the property dated 08/05/2003 was registered in the concerned sub-registrar office. That Op had taken authority from the second complainant to collect the original sale deed from the office of the sub-registrar along with original title deed. That they have fully discharged the loan sanctioned by the Op and demanded Op to return the original deeds Op through his letter dated 05/12/2008 informed them about the closure of loan account. In which the OP has listed the documents which were delivered to them with an endorsement that he will deliver original sale deed dated 08/05/2003 and registered documents which was stored in CD No.125. They went on demanding for return of original documents from the Op and even sent e-mail on 06/04/2009. Even then the Op has not returned their original documents that the OP has recovered Rs.6,43,023/- towards interest but committed gross negligence in not maintaining original documents and for non-return of those documents the Op is liable to pay them Rs.6,43,023/-. Despite issue of legal notice dated 13/04/2009 Op has not returned the original documents and as such have prayed for a direction to Op to return their original documents and on their failure to return them pay Rs.6,43,023/- besides awarding compensation of Rs.1.00 lakh and cost.

Op has appeared through his advocate and filed version admitting sanction of loan to the complainants and repayment of the entire amount and receipt of the sale deed with another registered sale deed of the previous vendor. Op has also admitted that he has not returned the original documents. OP has further stated that the original documents were transmitted back to Mumbai and the originals seems to have got misplaced during that period and has even further stated that various efforts to trace the original documents was not successful and conceded that the documents are not yet traced and has prayed for the dismissal of the complaint.

In the course of enquiry into the complaint, the first complainant and an employee of Op have filed their affidavit evidence reiterating what they have stated in their respective complaint and version. The complainants along with complaint have produced copy of closure of housing loan amount, certain e-mails that they sent to Op along with copy of account details in respect of the loan amount they had with the Op. OP has not produced any documents. Heard the counsel for both parties and perused the records.


On consideration of the above materials following points for determination arise.

1. Whether the complainant proves that the Op due to his negligence has lost the original documents submitted by him as security for the repayment of the loan and has caused deficiency by not returning them?

2. To what relief the complainant is entitled to?

Point No.1 : In the affirmative.

Point No.2: To see the final order.

REASONS:

Answer on point No.1 :

The contentions of both parties without any reservation prove that the complainants had borrowed a loan from the Op for purchase of a property and that the complainant after acquiring title to that property under the title deeds dated 08/05/2003 and title deed of the vendor of complainants with a CD No.125 were given to Op. Thereafter, after repayment of loan when they requested Op to return those original documents, Op was not able to and is not able to return those original documents on the ground that the original documents are misplaced and are not traced. These developments of the loan transaction and non-return of documents are not denied by the Op. Even closure of housing loan account of the complainant has been admitted by the Op through his letter dated 05/12/2008 sent to the complainant. With these admitted developments and in view of the clear admissions of the Op, that because of misplacement of original documents and their inability to return proves the deficiency of Op. The complainants because of this lapse on the Op have sought for a direction to the Op to return their documents in the alternative to pay them Rs.6,43,023/- which was received from the complainant by the Op as interest on advanced loan. Considering the helplessness of the Op in returning the original documents and the claim of the complainant against the Op this forum has to determine as how the grievance of the complainant be redressed.

When the Op has openly conceded to have lost the original documents or mis-placed then they cannot escape from the liability to compensate the complainants. In view of such a situation giving a direction to Op to return those documents would become redundant and serve no purpose. Hence, this forum has to strike a balance considering the negligent act of Op and the ex-orbitant claim of the complainants. It is not the case of the complainants that they cannot obtain certified copies of title deeds from the concerned registration office. Of course, non-availability of original documents of a property would be a serious concern if that property is to be sold. Hence, considering that the Op being a banking institution expected to take care while handling them and to take all measures to preserve them but found to have acted against it and there by caused deficiency in their service. With this, we allow the complaint filed by the complainant by answering point No.1 in the affirmative and pass the following order.

O R D E R

Complaint is allowed.


Op shall pay Rs.30,000/- to the complainant for not returning of the original documents within sixty days from today.

In the event of Op failing to pay Rs.30,000/- as ordered he shall pay interest @ 9% p.a from the date of this order till the date of paymen
Op shall also pay cost of Rs.2,000/- to the complainants.