What would you do if you close your home loan, and later find out that the bank has misplaced your original property papers? Something similar happened with a Delhi-based couple, who decided to file a complaint against the bank and won compensation.
Eight years ago on March 16, 2018, a couple had availed a housing loan of Rs 1,41,75,151 from Axis Bank to buy a property in DLF Capital Green, Karampura West, New Delhi. They created a mortgage over the title deeds of the said property in favour of the lender.
Around 3 years later after repaying the amount, the couple closed their Rs 1.41 crore loan account and requested the bank to return their original title documents. Despite repeated follow-ups, Axis Bank failed to return the original property papers and in April 2021, it informed the husband-wife that the original deed could not be traced.
Know what they did next and won compensation from Axis Bank.
Axis Bank lost original property papers; Delhi couple files complaint and win compensation
To their utter shock, the Delhi couple came to know that Axis Bank has misplaced their original house papers after repaying their Rs 1.41 crore loan. After informing the couple about the loss, Axis Bank acknowledged the same on July 10, 2021.
The lender furnished a lawyer’s letter dated July 19, 2021, a public notice, a police report dated June 29, 2021 and a certified copy of the sale deed obtained from the office of the Sub-Registrar.
Following this, the Delhi couple approached the Banking Ombudsman in September 2021 for the redressal of their grievance. During this time, Axis Bank admitted that the original papers were deposited with them which is not traceable. On January 18, 2022, the Ombudsman awarded a compensation of Rs 5 lakh to the couple while granting liberty to seek appropriate remedies before the competent forum.
| CASE TIMELINE | |
| March 16, 2018 | Complainants take Rs 1.41 crore housing loan from Axis Bank |
| March 3, 2021 | Loan fully repaid and account closed |
| April 2021 | Bank admits original sale deed untraceable |
| July 10, 2021 | Formal acknowledgment of loss by Axis Bank |
| September 7, 2021 | Complainants approached the Banking Ombudsman |
| January 18, 2022 | Ombudsman awards Rs 5 lakh compensation with liberty to seek further remedy |
Delhi couple wins Rs 15.5 lakh compensation from Axis Bank after it lost their original property papers – Here’s how
While they were awarded a Rs 5 lakh compensation by the Banking Ombudsman, the couple did not accept it as it was “inadequate”.
They then filed a complaint in Delhi State Consumer Disputes Redressal Commission, alleging deficiency of service and negligence on the part of the lender. They sought a compensation of Rs 1 crore for this, which Axis Bank called “highly excessive” and “not maintainable in law”.
| Complainants' Original Prayer |
| Bank to trace the original sale deed, or |
| Pay Rs 1,00,00,000 (1 crore) as damages for the loss, plus |
| Rs 1,00,000 for mental harassment/trauma |
Upon perusal of the record, the commission found that the loss of the original papers while in the custody of the bank stands established. “The subsequent actions taken by the Opposite Party, including lodging a police report, issuing a public notice, obtaining a certified copy of the Sale Deed, and furnishing a lawyer's certificate, unequivocally indicate that the original title document was misplaced during the period it remained in the possession of the Bank,” the commission said.
These measures, though undertaken to mitigate the consequences of such loss, do not absolve the bank of its responsibility to safely preserve the documents, it added.
ET Wealth Online reached out to Axis Bank for a response regarding this case. The response is awaited.
What did the commission rule?
Referring to the case titled ‘Manoj Madhusudhanan v. ICICI Bank Ltd.’, reported in 2023, the Delhi State Consumer Disputes Redressal Commission pointed out that the absence of the original sale deed prejudices the couple’s ability to deal with the property freely, whether by way of further sale, mortgage, or transfer.
Axis Bank “has been clearly and demonstrably deficient in service, by failing to safeguard and return the original sale deed entrusted to them and therefore, the Complainants are entitled to adequate compensation for the loss suffered by them,” the commission ruled.
Taking note of the Rs 1.41 crore housing loan taken by the couple and describing it as “reflecting its significant market value”, the commission expressed that the loss of original title deed of such a property cannot be viewed lightly. It directed Axis Bank to pay an amount of Rs 15 lakh as compensation for the loss, within 2 months from the order.
Additionally, the bank has also been directed to pay another Rs 50,000 for the financial and legal prejudice suffered by the husband and wife along with the litigation cost.
| Item | Amount |
| Compensation for loss of title deed | Rs 15,00,000 |
| Litigation costs | Rs 50,000 |
| Total | Rs 15,50,000 |
