What is procedure if the demand draft is lost?

You can do something about the lost draft if you have the demand draft number.

visit the branch where you took the draft and provide them the draft number. Also give them a letter with the draft details (on whose name you took the draft, the date, draft number, amount, payable city etc) and tell them that the draft is lost. As a first step, ask them to block the draft so that, the draft cannot be cashed by someone.

As the next step, ask them to either cancel the draft and pay you money or re-issue a fresh draft.