Legal Question in Banking Law in India

Hi Sir,

I (aged 53) am a resident of Vijayawada. I and my father (aged 74) have two SOD accounts in Syndicate bank respectively. Also my father has another housing loan. The 2 OD�s are worth Rs.30,00,000.The housing loan is of Rs.20,00,000.We run these OD accounts for the purpose of business from the year 2003.Very recently, housing loan has been closed by paying the total amount in EMI�s in April 2014.

In August 2013, we want to avail a new loan in another bank so as to take over the above said loans from Syndicate bank. When we applied for a new loan worth Rs.65,00,000 in new bank and when the takeover is under process, bank found that the property document which has been submitted for security for all the three accounts(registered mortgage i.e. Deposit of title deeds) is missing. As a result, the new bank couldn�t sanction our loan proposal even our income is highly sufficient for repayment of the new loan. From August 2013 onwards there is no proper response from Syndicate bank. They made us to pay a lot amount as interests unnecessarily. But the manager requests us for a compromise saying that proceeding legally is waste of time and worthless. He suggests us to lodge a police compliant on missing of the document so that the police certify the missing and we can avail a duplicate copy of the document from the registrar office. The missed document is a sale deed and this property is purchased in the name of my father(self acquired property) in the year 1968.We are requesting the bank manager from over 9 months to make a search of the document in the bank premises with the help of Xerox copies of the document present with us. But the manager is avoiding the search with very silly reasons. We are totally vexed up with their responses. The bank manager and staff seem to be very irresponsible on this issue. We are so confident that the document is not missed but may be mixed in some others file.

So, we request you to suggest us. What may be the best way to proceed legally?

I heard that, in such cases the bank is responsible for paying the loss or a percentage of the value of the property to the owner or account holder. Is this really true? If so, what is the best method to proceed?

We thank you in advance for your valuable advice.

1 Answer from Attorneys

Related Questions & Answers

More Banking Law questions and answers in India

Looking for something else?