SBI fined Rs 1L for losing pledged documents

The complainant, Inparaj, had in his petition stated that he had approached the SBI branch manager in Kuzhithurai for obtaining an education loan for his daughter Sinthika Rani. 

During the loan process, he had submitted 13 original documents to the bank.

Due to circumstances, he had defaulted on the loan and in the Lok Adalat conducted on December 9, 2015, he agreed to pay the amount before March 25, 2016. As agreed, he paid the entire amount. Even after he paid up, the bank didn’t return the documents to him. 

When he met the branch manager and sought the return of his documents, the manager was evasive and did not treat him properly. Subsequently, he sent a notice on May 28, 2015, to the manager asking him to return the documents. 

When the documents were not returned, the complainant approached the consumer court praying it to direct the manager to return all his documents and a compensation of Rs 10 lakh for the mental agony suffered by him. 

Meanwhile, the manager filed a reply in the court admitting that despite the bank’s best efforts it was unable to trace the documents. He also said the bank was ready to furnish the bank’s certificate or notarised affidavit indicating the loss of documents in the bank and accepted to bear the cost for obtaining the certificates back. The manager also submitted that there was no negligence by the bank and urged the court not to impose the fine. 

However, R Narayanan, president of the Kanniyakumari Consumer Disputes Redressal Forum and A Sankar, member, ruled that there was proof of the SBI obtaining the documents and losing them which amounts to gross negligence on its part and directed the bank to pay Rs 1 lakh as compensation. 

The court also directed the bank to pay Rs 5,000 towards court charges to the complainant, within one month.