Indian Bank loses papers, fined ₹3lakh

Indian Bank loses papers, fined ₹3lakh

Chennai:31.10.2021

The Madras high court has imposed Rs 3 lakh cost on Indian Bank for losing title deeds of an immovable property mortgaged by a private company which is currently under liquidation.

Appalled over the bank’s refusal to fix accountability on its officials for the loss of title deeds, Justice R Subramanian said, “this is the most demeaning act that a bank can do.”

“After having lost the documents, which were in its custody, it is unwilling to act against their officers also. I find all is not well with the conduct of the bank in at least attempting to take corrective measures and stop recurrence of loss of documents in future,” the judge added.

The issue pertains to a plea moved by N Shanmugasundaram seeking to direct an appropriate investigation into the circumstances surrounding the bank becoming unable to trace the title deeds and other related documents of the property owned by Sree Visalakshi Mills Pvt Ltd, which is under liquidation.

Since the bank failed to provide a satisfactory answer as to how a title deed deposited with the bank could not be traced and no official of the bank was made liable for the loss, the court said: “It is only after the directions of this court that the bank came forward to make advertisements in newspapers and also lodge a police complaint regarding loss of the documents.”

The fact that no police complaint was lodged upon the loss of the documents itself would demonstrate that the bank was reluctant to fix the responsibility on any of its officers, the court added.

The judge then directed the bank to obtain a certificate of non-traceability from the police concerned and handover the same to the petitioner. tnn

The judge directed the bank to obtain a certificate of non-traceability from the police concerned and handover the same to the petitioner