LIC Housing Finance asked to pay Rs 2.3L for loss of documents

A consumer forum has asked Life Insurance Corporation Housing Finance Ltd (LIC HFL) to pay Rs 2.3 lakh compensation for loss of documents submitted by two doctors who had taken home loan from it.
New Delhi District Consumer Disputes Redressal Forum, presided by C K Chaturvedi, asked the company to pay the money to Dr Mukesh Kumar and Dr Renu Bala, residents of Delhi.
"After considering all facts, we find that the loss of conveyance deed in name of complainants in office of Opposite Party (OP) is admitted fact, due to imperfection in securing it properly in safe custody," the forum, also comprising its member S R Chaudhary, said.

The complainants had alleged that they had submitted three documents with the company-- fifth and final demand letter, payment challan and conveyance deed-- which were lost.
The forum also noted that though the company was denying that other two documents were with it, the complainants from day one were reminding it to return the same and they simply could not be disbelieved.
"However, at the stage all the three documents being not traceable by OP (company), all it can do is to issue a certificate to the complainants, in pursuance to this decision to say that original conveyance deed of the particular property of complainants, was deposited by complainants with it and same has been lost by it," it said.

The forum also directed the company to approach DDA for re-construction of a duplicate conveyance deed, with endorsement from the Registrar that original was registered with it and same was lost.

"OP is also directed to pay Rs two lakhs as compensation to complainants for loss of conveyance deed... OP is directed to pay Rs 30,000 as litigation expenses," it said, adding that the complainants should inform DDA about loss of original papers of fifth and final instalment, so that they are protected against fraudulent deals.
The complainants had told the forum that they had taken a loan from LIC HFL for DDA flat allotted to him. Documents of fifth and final demand letter, payment challan and conveyance deed, were given in office of the company, for conversion from lease holder to free holder. Later they demanded back the letters deposited with company.

The company, however, accepted that the conveyance deed was lost but it denied that other papers were supplied to it. It maintained its stand before the forum.
Alleging deficiency on the part of the company, the complainants approached the forum.