Application under Article 227 against the order of NCDRC in a second appeal is maintainable.

Non-return of original KVP certificates after repayment of loan constitutes deficiency of service.  The court maintains that PNB Housing Finance failed to return original KVP certificates, causing financial loss to the borrowers.

The Calcutta High Court, presided by Justice Hiranmay Bhattacharyya, has upheld a ruling against PNB Housing Finance Limited, confirming the deficiency of service in a dispute involving the non-return of original Kishan Vikash Patra (KVP) certificates. The judgment, passed on August 6, 2025, dismissed the application filed by PNB Housing Finance under Article 227 of the Constitution of India, challenging the decisions of the District, State, and National Consumer Disputes Redressal Commissions.

The case originated when the respondents, Arunangshu Chakraborty and another, obtained a housing loan of Rs. 5 lakhs from PNB Housing Finance under the Floating Apna Ghar Scheme. As collateral, they submitted 14 KVP certificates. Upon repaying the loan, they requested the return of their KVP certificates. However, PNB Housing Finance informed them that three certificates were misplaced, allegedly due to an oversight, and lodged a complaint with the police.

The borrowers filed a complaint with the District Consumer Disputes Redressal Forum, claiming a deficiency of service. The District Forum ruled in favor of the borrowers, directing PNB Housing to pay the maturity value of the missing certificates along with interest and compensation for mental agony. This decision was upheld by the State Commission and later by the National Commission when PNB Housing’s appeals were rejected due to procedural delays.

PNB Housing argued that the postal authorities should have been made a party to the complaint, as they were responsible for issuing duplicate certificates. However, the High Court dismissed this argument, affirming that the postal authorities were not necessary parties in a case focusing on the deficiency of service by PNB Housing.

Justice Bhattacharyya stated that the failure to return the original KVP certificates constituted a clear deficiency of service, impacting the borrowers' ability to claim maturity proceeds. The court found no merit in PNB Housing's appeal, concluding that the orders of the consumer commissions did not warrant interference.

This ruling reinforces consumer rights under the Consumer Protection Act, 2019, emphasizing the accountability of financial institutions in safeguarding borrower collateral.

Bottom Line:

Application under Article 227 of the Constitution of India against the order of the National Consumer Disputes Redressal Commission in a second appeal is maintainable. Non-return of original KVP certificates after repayment of loan constitutes deficiency of service.

Statutory provision(s): Article 227 of the Constitution of India, Consumer Protection Act, 2019 Section 12

PNB Housing Finance Limited v. Arunangshu Chakraborty, (Calcutta) : Law Finder Doc Id # 2765580