Documents misplaced
R.Ranganathan
(Querist) 10 September 2010
This query is : Resolved
How far and how much is a Bank liable for missing documents from Bank. Whether certified copies can control the damage. What amount of compensation is payable under the said circumstances
Parthasarathi Loganathan
(Expert) 10 September 2010
Missing documents means.. whether it is title deeds to property offered as security? Please clarify
R.Ranganathan
(Querist) 10 September 2010
yes. Title Deeds offered as E.M. for the loan, misplaced and not traceable.
Parthasarathi Loganathan
(Expert) 11 September 2010
Based on Acknowledgement of deposit of title deeds which is a basic document for creation of equitable mortgage certificate copies of title deeds are obtained from the Registration Authorities and handed over to the borrower on full settlement of bank dues
R.Ranganathan
(Querist) 11 September 2010
yes. But the borrower is claiming compensation for the loss of originals and that too several lakhs even though he has not incurred any loss due to the loss of documents. So what action should be taken.
masood ausaf
(Expert) 11 September 2010
The Bank is fully liable to compensate the Borrower for loss of original documents by the Bank. The Borrower can claim the charges for obtaining the certified copies of such missing documents along with the damages on account of mental torture, loss of value of the property etc. Therefore, it is advisable that the amount of compensation may be negotiated with the borrower.
R.Ranganathan
(Querist) 11 September 2010
Mr. Masood ausaf, you have stated that loss of value of the property. I don't understand what is meant by that. There is no loss of property here only loss of Original documents.
