G K BONAGERI Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The material facts of this case, in brief, are as follows : The petitioner, who is the member of the Urban Co-operative Bank Ltd., Bagalkot (respondent-4), contracted a loan by pledging the goods duly insuring with the Union Co-operative Insurance Society with the insurance policy being assigned in favour of the 4th Respondent-bank. The loan was given by the 4th respondent.

(2.) According to the petitioner, he borrowed a total sum of Rs. 1,54,361.00 and the value of the goods pledged with the 4th respondent was Rs. 2 36,000-00. In 1968, when the pledged goods were in the custody, control and possession of the 4th respondent, there was an outbreak of accidental fire which the gutted the goods and the godown in which the goods had been kept. It is the 4th respondent who preferred a claim before the Insurance Company for payment of compensation of Rs. 2,36,000-00.

(3.) The question of payment of compensation was adjudicated by an arbitrator in the High Court of Judicature at Bombay in the exercise of ordinary original civil jurisdiction in Arbitration Suit No. 440/1969 and Appeal No. 119/1969. The parties before the Arbitrator were the 4th respondent as the plaintiff and the Union Co operative Insurance Society Ltd., as the defendant.