CANARA BANK vs C.APPU

THIS appeal is directed against the order passed by the District Forum, Palakkad in O.P. No. 583 of 1996. The opposite parties are the appellants. The case of the complainant is that he has availed of a loan of Rs. 15,000/- from the opposite party Bank on execution of a promissory note on 18.10.1988 in favour of the Bank and he deposited the original sale deed of an immovable property owned by him by way of security. The complainant could not repay the loan installment and the first opposite party filed a Suit No. 536/ 1991 and obtained a decree and E.P. 17/95 was filed to recover the decree amount from the complainant and the EP was closed on 23.8.1996 on payment of full amount. However the opposite party did not return the documents which according to the complainant would amount to deficiency in service.

THE opposite party filed a version stating that there are two other loans and the document was deposited not only byway of security for the loan mentioned, but also two other loans outstanding and therefore they are not bound to return the document. The District Forum found that the document was deposited in regard to this loan also and in that view passed an order directing the opposite party to return the documents together with compensation of Rs. 5,000/- and Rs. 500/- as cost. Aggrieved by the said order this appeal has been preferred.

The National Commission has held occasion to consider the question of failure to return documents deposited by security in M/s. Shankar Tube Wells v. The Branch Manager, State Bank of India, 1997 (2) CPR 3. That is a case relating to release of documents deposited by way of security by the Bank on repayment of loan. The National Commission took the view that it gives rise to only a civil dispute and complainant cannot be said to be a consumer within the meaning of Consumer Protection Act. In the light of this decision we are unable to sustain the order passed by the District Forum. We allow the appeal, set aside the order of the District Forum and dismiss the complaint reserving the right of the complainant to approach a Civil Court for appropriate relief. Appeal allowed.