Remedies under consumer protection Act when the bank refuses to return back the title deeds

 

Remedies under consumer protection Act when the bank refuses to return back the title deeds

 

Bank of Baroda v. Ranjeet Singh 2012 SCC OnLine NCDRC 626.

Facts: The Complainant/Respondent had availed the loan facility for the sum of Rs. 28.00 Lakh from the Petitioner Bank and to secure the repayment of the said loan, had mortgaged his immovable property by depositing the title deeds. The Respondent became irregular in repaying the loan amount and contacted the Petitioner and informed them that he could repay the loan by selling the mortgaged property to which the Bank officials had no objection and, therefore, the Respondent agreed to sell the mortgaged property for a throw away price of Rs. 25.00 1akh although the market value of the plot was claimed to be Rs. 35.00 lakh. The Respondent deposited the same with the Petitioner. The Respondent called upon the Petitioners to release the title documents of the plot deposited by him, which the Petitioners declined on the plea that the Respondent was in arrears of another loan, which he had taken from another Branch of petitioner. The Respondent alleging deficiency in service filed a complaint before the District Forum and filed an interim application to return the title deeds. The District Forum allowed the interim application. On appeal, the State Commission affirmed the order of District Forum. Hence the present revison petition has been filed.

Issue: Whether the District Forum was justified in allowing the interim application of the Respondent seeking return of the documents?

Decision: The question before the National Commission was whether the District Forum was justified in allowing the interim application of the Respondent seeking return of the documents and the State Commission in continuing the said order. It was held that the provisions of section 171 of the Indian Contract Act, 1872 as well as the law as laid down by the Supreme Court of India. There was no escape from the conclusion that the Bank

could claim lien even on the title documents pertaining to the plot in question even for the loan of their different branch. However, the provisions of the Recovery of Debts Due to Banks and Financial Institutions, Act, 1993 left no manner of doubt that the Legislature had clearly forbidden any other Application for return of documents