Holding IDBI Bank Ltd responsible for not returning all original title documents of the flat entrusted to them by the home-buyers, the National Consumer Disputes Redressal Commission (NCDRC) asked the lender to pay Rs20 lakh compensation, Rs1 lakh towards mental agony and harassment and Rs50,000 litigation expenses.
In an order issued earlier this week, the bench of Deepa Sharma (presiding member) and Subhash Chandra (member) says, "There is, therefore, a deficiency in service on the part of the opposite party. Loss to the complainants is, therefore, manifest. Absence of these documents would certainly make it difficult for the complainant to put his property on the market should they want to sell it. Documents such as the builder buyer agreement, flat purchase letter, full and final payment receipts issued by the seller are extremely essential documents to establish title to the property. The essential nature of these documents is vouched safe by the fact that the opposite party had required the complainant to deposit the same in original in order to secure the home loan advanced to the complainants."
Gurugram-based Binod Dokania and Sushma Dokania had filed the case against IDBI Bank alleging deficiency in service in losing or destroying original title documents of their residential flat mortgaged for securing a home loan from the Bank.
In this case, IDBI Bank had given all the original documents to Stock Holding Corporation of India (SHCIL) Projects Ltd for safe custody and storage as per their agreement. However, the Dokanias were unaware of any arrangement between IDBI Bank and SHCIL.
Meanwhile, SHCIL informed IDBI Bank about a fire at its premises on 11 December 2017, in which it says documents of the Dokanias were destroyed. Afterwards, the home-buyers obtained a certified copy of the registered sale deed from the sub-registrar and handed it over to IDBI Bank.
IDBI Bank contended its agreement with SHCIL indemnifies it against "no claim costs, charged, damages, demands, loss liabilities or expenses of any nature and kind whatsoever and by whomsoever." Also, since the Dokanias did not implead SHCIL as a party, their complaint is not maintainable.
Later, on 12 April 2021, IDBI Bank submitted that due to its efforts, SHCIL traced and returned the original sale deed of the home-buyers. However, no other documents were retrieved.
During the hearing, IDBI Bank objected to the compensation claimed by the Dokanias. "...the complaint is based on an inflated claim for compensation since the loan amount was only Rs28.74 lakh and that there has not been a proper joinder of parties as SHCIL have not been arrayed as an opposite party cannot be accepted," it says.
However, NCDRC observed that IDBI Bank did not disclose to the Dokanias that the documents would be kept in safe custody with SHCIL or that the Bank was indemnified against loss or destruction.
It says, "It was only after the incident of fire that IDBI Bank on 21 April 2018 conveyed the same to the complainants after the loan had been foreclosed. It is noteworthy that although IDBI Bank had already been conveyed about the fire accident took place on 11 December 2017 however, they chose not to disclose the same to the complainants.
"The claim of the complainant is based on their estimation of the market value of their flat, which cannot be faulted since original title documents have a sine quo non for any transaction pertaining to the sale or purchase of the real estate. The claim for compensation and mental agony and harassment is, therefore, valid and justified," the bench says.
NCDRC then directed IDBI Bank to pay the Dokanias Rs20 lakh compensation, Rs1 lakh towards mental agony and harassment and Rs50,000 as cost of litigation.
(Consumer Case No2218 of 2018 Date: 20 February 2023)
