The District Consumer Disputes Redressal Commission in Thrissur has held the Central Bank of India responsible for losing an original Pattayam (land title deed) that had been deposited as collateral for an agricultural loan. The commission observed that the bank's negligence deprived the property owner of the ability to fully exercise her rights over the land, reported TOI. The commission directed the bank to pay Rs 2.5 lakh as compensation and Rs 10,000 towards litigation expenses. Both amounts will carry interest at 9 per cent per annum until payment.What was the dispute?As per the TOI report, the case was filed by Sathyavalli and her son Saseendran, who had taken an agricultural loan of Rs 3 lakh from the Central Bank of India's Thanikkudam branch. To secure the loan, they deposited the original Pattayam relating to Sathyavalli's 0.8903-hectare property in Madakkathara village.According to the complainants, the issue surfaced when Saseendran approached the bank seeking an additional loan. During the process, he was informed that the original title document could not be located. The bank subsequently admitted that the Pattayam had been lost while in its custody.The complainants approached the consumer commission seeking Rs 20 lakh in compensation, contending that the loss of the original title deed affected their ability to deal with the property, obtain fresh loans and realise its full market value.The bank argued that the borrowers had defaulted on timely repayment of the loan. However, the commission held that this did not absolve the bank of its responsibility to safeguard the documents entrusted to it.What did the commission say?After reviewing the records, the commission found that the original Pattayam had indeed been deposited with the bank and that the bank was unable to return it.Rejecting the bank's defence, the commission observed that the issue of loan repayment had no bearing on the bank's duty to preserve the original property documents."Hence the opposite parties contention regarding the complainant's default in repayment cannot justify their negligence in safely keeping the valuable documents," the commission said.The commission noted that even if the borrowers were to repay the entire loan, the loss of the original title deed would continue to affect their ownership rights and use of the property."Loss of the original document prevents the complainants from being restored to the original position prior to pledging the document," the commission observed.It further pointed out that the absence of the original title deed could create difficulties in proving ownership and carrying out future property transactions."Even full repayment of the debt would not make the property 'scot-free', nor would it enable the 1st complainant to exercise full rights over the property, as the original title document is essential for ascertaining ownership and undertaking any transaction," the commission said."The decline in the value of the property if it is to be sold without the original title document, would be substantial," it added.The commission also highlighted the challenges the complainants could face in securing future loans, as financial institutions generally require original title deeds before extending credit."Even banks including the opposite parties or other financial institutions will not be willing to provide loan against a property, if the original title document is not deposited with them," the order stated.Compensation awardedWhile the commission declined to award the Rs 20 lakh compensation sought by the complainants, noting that they had not demonstrated the precise financial loss suffered, it held that the loss of the original title document had undeniably caused hardship and financial difficulties.Accordingly, it awarded Rs 2.5 lakh as compensation for the agony, hardship and financial loss suffered by the complainants, along with Rs 10,000 towards litigation costs.The commission clarified that its order would not prevent the bank from pursuing any legal remedies available to recover any outstanding dues from the borrowers.