A bank is liable for deficiency in service for losing a customer's original title deeds after loan repayment. Compensation must be enhanced to reflect the significant erosion in property value, potential misuse of documents, and the borrower's inability to secure future loans using the property as collateral.

ORDER

(Delivered on 30/03/2026)

Per Mrs Kalyani Kapse, Hon’ble Presiding Member

1. Being aggrieved by the Final order dt.20/07/2023, passed by the learned District Consumer Disputes Redressal Commission, Nagpur in Complaint Case No.CC/114/2020, thereby the complaint filed by the present Appellant/Original Complainant was partly allowed and Respondents were only directed to pay Jointly and Severally the compensation of Rs.50,000/- towards the mental and physical agony and the cost of Rs.10,000/- towards the litigation charges without stipulating any time period therefor, so also not giving any direction of return of original title deeds as prayed, the Appellant/original Complainant having been dissatisfied by the Final order dt. 20/07/2023 prefers the present. Brief facts of appeal as follows-

2. In a nutshell it is a case of the Complainant that the present Appellant/Original Complainant running a small business commonly known as 'Archi Trading Company, for selling Tiles and his entire family consists of 4-5 members including the present Appellant are completely depend upon the above said business, and whatever he earns from said the business, the Appellant used to spend for bread and butter for himself and for his family.

3. In the Year 2014, the Appellant/Complainant had applied for loan with the Respondent No.1 for Cash Credit limit of Rs. 25 Lacs and term loan of Rs.5 Lacs and said loan was sanctioned and disbursed on 07/02/2014 against the equitable mortgage of property of the Complainant/Appellant i.e. Flat No.6, situated on Plot No.17, out of Hari Apartment, Kh. No.84, 86 and 88, Mouza-Bhamti, House No.4188/17, Ward No.75, City Survey No.41, Sheet No.277/20 within the limits of Nagpur Municipal Corporation, Dist. Nagpur, the sale deed of which has been registered vide Document No.3737/2011 before the Sub- Registrar, Nagpur & Plot No.5, Shop No BS-1, situated on Plot No.5. Vakratund Apartment, Ring Road, Last Bus stop Trimurti Nagar, Nagpur, within the limits of Nagpur Municipal Corporation, Dist. Nagpur, the sale deed of which has been registered vide Document No.3841/2010 before the Sub Registrar, Nagpur and the said loan account was rightly closed after paying all the outstanding due amount of loan by the Complainant/Appellant on 06/03/2018. After closing of the said loan account Complainant requested to return original sale deed but Bank shows inability to return it as it was misplaced by the Bank.

4. The present Appellant/Original Complainant filed the complaint CC/114/2020 under Section 12 of Consumer Protection Act, 1986 (For the sake of brevity “The Act”) on account of deficiency in service on the part of the officials of the Respondent's Bank by not responding positively to release the original Title Deeds in respect of the property of the Complainant/Appellant against which the equitable mortgage for cash limit of Rs.25 lacs and term loan of Rs.5 Lacs was secured and in spite of having repaid the entire said loan account by paying all the outstanding loan amount by the Complainant on 06/03/2018, the Respondents have miserably failed to return the original Title Deeds as described in Dues Certificate dt.03/03/2018 issued by the Respondent Bank after closing the loan account.

5. Notices were served to Opponents. By way of Written Version (W.S.) dated 23/02/2022 Opposite Party No. 1 and 2 by general denials and defences restrict