The Bombay High Court has ordered State Bank of India to pay ₹5,000 per day to In Vogue Creations from December 1, 2023 until the bank provides certified copies of missing property documents and completes title record reconstruction. According to The Times of India, a division bench comprising Acting Chief Justice Ravindra V Ghuge and Justice Gautam A Ankhad passed the order on September 2, 2026, giving SBI 12 weeks to complete the exercise. The court rejected SBI's contention that the firm's delay in requesting documents relieved the bank of responsibility. Chief Justice Ravindra V Ghuge and Justice Gautam A Ankhad held that the bank had a duty to preserve and return the valuable originals after repayment, stating that the ₹5,000 per day prescription is not an arbitrary figure but provides an objective and rational measure of prejudice where a regulated entity fails in its obligation concerning original property documents.
The loan was taken in 1979 and fully repaid in 2003, with SBI issuing a No Dues/No Claims Certificate on July 27, 2023. As reported by The Times of India, In Vogue Creations had purchased Units/Gala Nos. 317 and 318 at Bussa Industrial Premises Co-operative Society in Prabhadevi, Mumbai, with agreements dated December 4, 1973 and August 3, 1978. The firm had handed over these agreements along with share certificates to SBI's Commercial Branch at Dadar as security for loan facilities on July 26, 1979. SBI later admitted in letters dated December 5 and December 7, 2023 that it could not trace the respective documents. The firm claimed that it deposited the property papers with SBI as security for the loan facilities extended to it, but the original property documents were not returned to the firm despite the bank allegedly confirming it does not have any claim or mortgage over the properties.
The court relied on the RBI's September 13, 2023 Circular on Responsible Lending Conduct requiring regulated entities to release original property documents within 30 days after loan repayment. According to The Times of India, the court noted that while the Circular could not be applied retrospectively from 2003, it still held SBI responsible given the bank's admitted loss of documents and continuing prejudice to the firm. The court emphasized that once a loan is fully repaid, the bank has no continuing right to keep original title documents, and a borrower is entitled to expect the bank to preserve and return valuable property papers after secured liability discharge. Chief Justice Ravindra V Ghuge and Justice Gautam A Ankhad pointed out that the RBI has expressly recognised that release of original title documents after repayment of a loan is an important aspect of responsible lending and prescribed a compensation of ₹5,000 per day where the delay is attributable to the bank.
SBI argued that the firm had not requested document return immediately after repayment and that the request came more than 15 years later after branch premises had been shifted. As reported by The Times of India, the bank also challenged the maintainability of the petition, pointing out that the Banking Ombudsman had already ordered ₹1 lakh compensation on November 21, 2024, which SBI deposited into the firm's account on November 22, 2024. However, the firm declined to accept the said amount, with advocate A M Saraogi arguing that the loss of original title documents has caused and continues to cause serious prejudice since it is unable to sell or otherwise effectively deal with the two properties. The court acknowledged this previous compensation but noted it would be adjusted against the current order's compensation.
The court recognized the continuing difficulty caused by missing papers, noting that original title documents form an important part of a property's chain of title and are ordinarily needed for selling, mortgaging, transferring, or dealing with property. According to The Times of India, the compensation will continue until SBI provides certified copies and completes title record reconstruction, including necessary endorsements, affidavits, indemnities, and supporting papers. The court placed responsibility for preserving, identifying, retrieving, and returning such documents squarely on the bank, stating that internal issues such as branch shifts could not be passed to the borrower. Chief Justice Ravindra V Ghuge and Justice Gautam A Ankhad directed the bank to take all steps in obtaining duplicate or certified copies of the documents which have been lost and in completing the reconstructed title record of the firm's properties.
