The Bombay High Court has directed the State Bank of India to pay the borrower Rs 5,000 per day as compensation after the bank admitted losing the original property documents deposited with it over two decades ago.
The court rejected the bank’s contention that the borrower waited long before requesting the return of the documents, clarifying that banks are responsible for preserving and returning borrower property documents.
The compensation will continue daily until the bank reconstructs the missing title records, the court said.
The ruling underscores the bank’s duty to safeguard borrower title documents and to provide timely return of such records, with implications for how lenders manage title records and related borrower interactions.
