BIZI INDUSTRIES Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Deficiency in banking service by opposite parties 1 and 2 and insurance service by opposite party No.3 are the grievances of the complainant which is a proprietory concern.

(2.) Complainant carries on business in steel fabrication, furnitures and sheet materials. It took loan in Cash Credit Account against which raw material, etc. of the complainant stood hypothecated and pledged to the State Bank of India. Some of the stocks and raw materials were under lock and key hypothecation and some others were lying in the open manufacturing shed. These materials which were in the lock and key godown were insured against theft, fire, etc. with opposite party No.3 by the State Bank of India. In 1989, materials worth Rs.2,20,000/- were stored in the lock and key godown. On or about 10/ 11.12.1989 there was theft/burglary committed in the lock and key godown. On 11.12.1989 in the morning complainant found the locks broken and the articles stolen. First Information Report was lodged by him in Madhupatna Police Station on 11.12.1989 and on being informed; State Bank of India took physical inventory on 12.12.1989. On inventory it was found that articles worth Rs.1,64,471/- were stolen. State Bank has lodged a claim with the insurer for an amount of 1.64 lakhs. Madhupatna Police Station has charge-sheeted the accused persons on 28.2.1990. Inspite of it, opposite parties 1 to 3 are not settling the claim for which complainant has suffered loss of about five lakhs and has filed this complaint alleging deficiency in service.

(3.) In the case stated by opposite parties 1 and 2, the cash credit (lock and key) limit was Rs.2,00,000/- out of which goods worth 15 lakhs were to be in the lock and key godown. Insurance was made with opposite party No.3. On receipt of intimation of theft on 12.12.1989 godown-keeper made physical inventory of the stock and prepared a list of the stock found. On the same day, letter was sent to the insurer-opposite party No.3. On 14.12.1989 claim was made which fact was intimated to complainant on 19.12.1989. On 20th December, complainant intimated that some other articles had been stolen on receipt of which on 2.1.1990, insurer was intimated to include the said items. Defect having been found in policy, correspondences have been made with 'the insurer to correct the policy. Thus, all steps have been diligently by the Bank.