VALLIAMMA P SOLEGOUNDER Vs. STATE BANK OF MYSORE

JUDGEMENT

(1.) The complainant had taken agriculture loan to the tune of Rs.67 Lakhs from the opposite party Bank. According to the complainant as per the terms and conditions of the loan the opposite party Bank was under obligation to take insurance in respect of the hypothecated assets. The opposite party, however, failed to take the insurance as a result the complainant has been deprived of the insurance indemnity against the loss caused to the green house and the crop due to flood.

(2.) We have heard learned counsel for the complainant and perused the record. Complainant has placed on record the loan sanction letter dated 3.12.2011 addressed by the opposite party Bank to the complainant. This letter contains the terms and conditions of grant of loan. This letter records "please transmit the copy of this letter duly incorporating signatures of borrower and guarantor in token of having accepted the above terms and conditions." At the bottom the letter bears the signatures of borrower as well as guarantor. From this it is evident that the terms and conditions contained in this letter after acceptance by the borrower and guarantor have become the contract.

(3.) The stand of the complainant that it was the obligation of the opposite party under the contract to obtain insurance in respect of the hypothecated assets appears to be incorrect.