‘Only 1 consolidated amount can be paid as compensation’

MUMBAI: The National Consumer Disputes Redressal Commission (NCDRC) has held that under provisions of the Consumer Protection Act, 1984 only one consolidated amount can be awarded to a consumer as compensation.

Thane resident Leenata Dhamankar had taken home loan and loan for the education of her daughter from the State Bank of India. She had done so by mortgaging her apartment located along Ghodbunder Road and an insurance policy.

When the loans were completely repaid, the original insurance policy was returned to her, but not the original title deed to the flat, as it was misplaced by the bank.

Dhamankar eventually approached the Maharashtra State Consumer Disputes Redressal Commission (MSCDRC) seeking return of the original title deed to her flat. Acting on Dhamankar’s complaint, on February 2, 2016, the State Commission directed SBI to pay her a compensation of ₹3 lakh for the loss of original title deed and additional amount of ₹1 lakh for mental agony and harassment suffered by her on account of loss of the document.

SBI had carried the matter in appeal to the National Commission.

By the time the appeal came up for hearing before the NCDRC, the bank succeeded in locating the original document and returned it to the complainant. As regards the compensation of ₹1 lakh for mental agony, the public sector bank contended that since the original document was found and returned to the complainant, the Thane resident had not at all suffered any actual loss on account of misplacement of the title deed.