Bank Mortgage: Consumer Disputes Redressal Forum, Chennai fined bank

Failure to return original sale deed costs bank Rs. 28,000

For people who took mortgage from bank by trusting title deeds of the immovable property, will be happy to hear that banks are fined for not returning the original title deeds back to the customer after all the dues are paid. People, who depend on mortgage calculator, plan the finances of household need to run pillar to post to get back title deeds from the Bank. This is common ordeal for many mortgagors to get back the original title deeds. But the consumer protection forum has fined the bank for the negligence on it part to return the title deed.

The Consumer Dispute Redressal Forum, Chennai (South) has slapped a fine of Rs. 28,000 for not returning the title deed to mortgagor. Mr. D.Pandian took loan from Union Bank of India. As security he deposited title deed with the bank. Mr. Pandian had repaid the loan amount along with interest which was acknowledged by the Union Bank of India. Despite acknowledgement, the bank failed to return the original title deed of the property which Mr.Pandian has deposited.

Five months later, the Bank informed Mr.Pandian that his title document went missing and bank is ready to issue a certified copy of the title deed. The legal notice sent by Mr.Pandian was acknowledged by the bank but failed to send a reply. Mr.Pandian, approached The Consumer Dispute Redressal Forum claiming deficiency of service by the bank. The complainant, Mr.Pandian, claimed that without original title document, the value of his property would diminish drastically and also any third party may dispute his ownership to that property. But the bank has neither sent a written statement nor appeared in person or through a pleader to represent before the forum.

On the documentary evidence produced by the complainant, the forum decided in favor of the complainant. The bench observed that the bank has failed to produce original title deed even after 3 years. Hence, it ordered Rs.25,000 as compensation towards mental agony and Rs. 3000 as cost for the suit. The bench directed further that the compensation should be paid within six weeks of the receipt of the order copy.

For any deficiency of service from any bank is redressable through the appropriate Consumer protection agency. For people who started discussing to get loan or mortgage calculators to plan their finance must take note of the above decision by the bench that negligence by bank is redressable through Consumer Protection Agency.