UNION BANK OF INDIA Vs. KASI VISWANATHA FERTILISERS

JUDGEMENT

(1.) This Revision Petition has been filed under Sec. 21(b) of the Consumer Protection Act, 1986 (the 'Act') against impugned order dtd. 9/12/2020, passed by the A.P. State Consumer Disputes Redressal Commission, Vijayawada ('State Commission') in FA No.98 of 2018 wherein the State Commission dismissed the Appeal and affirmed the order dtd. 9/10/2017, passed by the District Consumer Disputes Redressal Forum, Guntur ('District Forum') in CC No.22 of 2017, wherein the Complaint was allowed in part.

(2.) For convenience, the parties are referred to as placed in the original Complaint before the District Forum. Sri Kasi Viswanatha Fertilisers is identified as Complainant. Union Bank of India is OP-1 and United India Insurance Co. Ltd. is identified as the OP-2.

(3.) Brief facts of the case, as per the Complainant, are that the Complainant is engaged in fertilizers and pesticides business in Ganapavaram village. He opened an OCC account with the OP-1 Bank, hypothecating stocks with a limit of Rs.10,00,000..00 OP-1 Bank facilitated insurance coverage for the stocks by deducting premiums from the OCC account. However, the insurance policy obtained from the OP-2 Insurer expired on 19/6/2016. Upon discovering the policy expiry, the Complainant requested OP-1 Bank to renew the policy and on 9/9/2016, the OP-1 Bank deducted Rs.5,750.00 from the OCC account towards insurance premium and assured the Complainant of sending a DD to OP-2 Insurer. The OP-1 verified the available stock in the Complainant's godown on 21/9/2016and and acknowledged the sane. Subsequently, heavy rain damaged the fertilizer stocks on 22/9/2016. Despite the Complainant informing OP-1 about the incident and damage, the premium DD was sent only on 23/9/2016, as acknowledged by OP-2 on 27/9/2016. However, OP-2 refused to issue a policy retrospectively from 3/10/2016. Being dissatisfied with the response and alleging deficiency in service, the Complainant forwarded a legal notice to OP-1, prompting a reply on 10/2/2017 containing false allegations. Being aggrieved, he filed a Consumer Complaint before the District Forum.