Archive · 5 Sep 2026
Bombay High Court Orders SBI Payments Over Lost Property Deeds
A company gave its original property papers to SBI when it took a loan.
The company finished paying the loan in August 2003.
The bank did not return the papers and later said it could not find them.
The company said this could make it difficult to sell or manage its properties.
SBI argued that the company had waited many years before asking for the documents.
The Bombay High Court said the bank still had a duty to protect and return the papers.
The court ordered SBI to pay ₹5,000 for every day from December 1, 2023, until proper replacement records are provided.
SBI has 12 weeks to reconstruct the title records.
The ₹1 lakh already paid to the company can be counted toward the total compensation.
The Bombay High Court ordered State Bank of India to pay ₹5,000 per day from December 1, 2023, over unreturned property title documents.
M/s In Vogue Creations deposited original deeds for commercial properties in Prabhadevi and Taloja with SBI’s Dadar branch in 1979.
The firm fully repaid its loan on August 28, 2003, but SBI later said the documents could not be traced.
SBI argued that the firm waited more than 15 years to request the documents and that ₹1 lakh already paid was sufficient.
The court gave SBI 12 weeks to obtain certified copies and reconstruct legally valid title records, with the ₹1 lakh payment adjustable against compensation.
- Who
- The Bombay High Court, State Bank of India, and M/s In Vogue Creations, represented by partner Achala Joshi.
- What
- The court ordered SBI to pay ₹5,000 per day for failing to return original property documents and directed it to provide certified copies and reconstructed title records.
- When
- The loan was repaid on August 28, 2003; the daily compensation applies from December 1, 2023. The court’s order was issued on September 2, though the year is not specified in the articles.
- Where
- The documents concerned commercial properties in Prabhadevi and Taloja and had been deposited at SBI’s Dadar branch in Mumbai.
- Why
- The court held that a bank must preserve and return original title documents after a borrower fully repays the secured loan.
Firm and Court’s Position
State Bank of India’s Position
Responsibility for missing documents
Firm and Court’s Position
The firm argued, and the court held, that SBI was responsible for preserving and returning the original title deeds after the loan was repaid.
State Bank of India’s Position
SBI acknowledged that the documents could not be traced and attributed the problem to the documents being misplaced, including after a branch relocation.
Delay in requesting the papers
Firm and Court’s Position
The court said the firm’s failure to immediately request the documents did not remove SBI’s duty to preserve them.
State Bank of India’s Position
SBI argued that the firm waited more than 15 years after repayment before seeking their return.
Compensation and legal remedy
Firm and Court’s Position
The firm sought ₹3.93 crore and said the missing documents caused serious prejudice because it could not effectively sell or otherwise deal with the properties.
State Bank of India’s Position
SBI argued that the petition was not maintainable because the Banking Ombudsman had already directed ₹1 lakh in compensation, which SBI deposited in the firm’s account.
- Court
- Bombay High Court
- Bank
- State Bank of India (SBI)
- Firm
- M/s In Vogue Creations
- Loan repayment
- August 28, 2003
- Daily compensation
- ₹5,000 per day from December 1, 2023
- Reconstruction deadline
- 12 weeks
- Previous payment
- ₹1 lakh paid following Banking Ombudsman proceedings, adjustable against compensation
- Claimed compensation
- ₹3.93 crore under an RBI circular
