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Shrey Bansal (student)     06 August 2021


My brother took a loan from the bank. As collateral, he submitted his house documents. Recently, he paid off the loan and received an acknowledgement letter from the bank stating that no loan is pending. However, the bank lost his house documents. What can he do? What legal actions can he take against the bank?

 5 Replies

SHIRISH PAWAR, 7738990900 (Advocate)     06 August 2021


Your brother has to get the certified copy from the sub-registrar office the copy of the property document for his personal use. He can take legal action against the bank for negligence in services. Your brother may approach the consumer forum for compensation against the bank. 

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     06 August 2021

If any govt issued document is lost or misplaced, it is mandatory to register Police FIR. In Police FIR, clearly state that Bank has lost your original Document/s or Page/s which you submitted with the bank in original against Loan from bank with that you can give that FIR COPY to concerned bank .

Shubham Bhardwaj (Advocate)     06 August 2021

Dear Mr Bansal, 

As rightly advised by learned advocate Sh. Pawar, the bank is guilty of deficiency in services for losing the documents relating to property. Therefore, for compensation for mental agony and harassment, consider filing consumer complaint in consumer court. 

Further, get a DDR registered with the local police station. The police will file a DDR and not an FIR in this case since FIR is only filed for criminal offences and not where documents are alleged to be lost unless you want to charge an employee of bank of theft of documents. 


Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh


Disclaimer:- Opinion is only for guidance. 

Suri.Sravan Kumar (senior)     06 August 2021

issue legal notice to the Bank and file complaint before Dist Commission under C.P.Act for deficiency of service.  There are several judgments of similar nature.

Kevin Moses Paul   06 August 2021

As per the situation you've explained above let me tell you that back in April, 2018 Maharashtra State Consumer Disputes Redressal Commission (i.e. MSCDRC) had penalised a foreign bank for losing the original sale deed of a property owner in Mulund, who was unable to sell the apartment in the absence of the documents. The bank was made to pay Rs 1.15 lakh compensation to the property owner who had taken a loan of Rs 9 lakh and had even repaid it.

Moreover, in addition to all this the commission also ordered that the documents be handed over to the property owner within three months and that failure to do so would invite a monthly compensation of Rs 50,000.

Therefore, similarly you may approach the Consumers Redressal Commission of your area. This is because, even in your case the loan amount has been paid successfully, so the bank will be held liable for misplacing important documents due to which the bank would not only compensate for the loss but will aslo make sure to get you the documents by their own.

However, if you still want to get the documents as early as possible and don't have time to wait for the bank to get the documents produced, then in such a case you may apply for the certified copy of the same from the sub-registrar's office.

Hope It Helps!

Kevin M. Paul

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