Private bank in Muthupettai asked to produce indemnity bond to customer for lost land documents

The District Consumer Disputes Redressal Forum, Tiruvarur, has directed a private bank branch at Muthupettai to issue an indemnity bond to its customer for the lost land documents pledged by the latter to avail a loan.

According to official sources, the complainant, Chidambaram, 58, of Edaiyur Kumarapuram near Thiruthuraipoondi, pledge his land documents to avail a loan of ₹2.22 lakh in February 2012 and the mortgauge was registered at the Sub-Registrar Office, Thiruthuraipoondi. Mr. Chidambaram repaid the loan in July 2023.

Though the bank issued no-due and other certificates with regard to the closure of the loan to Mr. Chidambaram, it did not return his land documents. When he approached the bank, the complainant was sent back with empty hands.

Mr. Chidambaram then filed a petition with the DCDR Forum, Tiruvarur, in April 2024, seeking direction to the bank authorities to return his land documents with cost and a compensation of ₹2 lakh for mental agony and stress suffered by him.

Responding to the notice, the bank replied that the documents pledged by the complainant had been lost.

Recording the statement, forum president Mohandoss and member Balu directed bank to lodge a police complaint and take steps to get ‘duplicate’ copies of the documents and hand them over to the complainant.

Asking the bank to issue an indemnity bond to Mr. Chidambaram in this regard, the forum ordered the bank to pay ₹2 lakh as compensation and ₹10,000 as cost to the complainant within a month.