In Vogue Creations Vs State Bank of India (Bombay High Court)
Bank Lost the Title Deeds, Borrower Need Not Lose the Property-Bombay HC Awards ₹5,000 Per Day Until Complete Reconstruction
Summary: The petitioner, M/s In Vogue Creations, had deposited original title documents relating to two industrial properties with the State Bank of India in 1979 as security for credit facilities.
The first property comprised two industrial units at Bussa Industrial Premises Co-operative Society, Prabhadevi, Mumbai. The second was an MIDC plot at Taloja, Panvel.
The petitioner fully repaid the loan on 28 August 2003. SBI eventually issued a No Dues/No Claims Certificate on 27 July 2023, confirming that it had no subsisting claim or mortgage over the properties. However, the original title documents were not returned.
SBI subsequently admitted that it was unable to trace the documents. The petitioner, who intended to sell the properties, approached the Bombay High Court seeking reconstruction of its title records and compensation for the continuing loss.
Ombudsman’s ₹1 lakh remedy rejected
The petitioner published a newspaper notice, lodged a police complaint and approached the RBI Banking Ombudsman.
On 21 November 2024, the Ombudsman advised SBI to pay compensation of ₹1 lakh. The petitioner declined to accept the amount, but SBI nevertheless credited it to the petitioner’s account.
