VISHNUKUMAR MAKHAN AGRAWAL Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) BRIEFLY stated the facts relevant for the disposal of the revision petition are that petitioner filed a consumer complaint alleging that he is engaged in commission business of cloth in the name of Amar Jyoti Textile. The complainant, in furtherance of said business obtained cash credit facility of Rs.5.00 lacs from the opposite party bank against hypothecation of his stock. As per the terms and conditions of cash credit facility, the said stock was required to be insured. According to the complainant, the insurance policy in respect of stock of goods was obtained by the bank. The insurance papers were sent by the insurance company to the bank. It is alleged that on 24.03.2003, the petitioner complainant shifted his business from Millennium Textile Market, Ring Road, Surat to a rented shop no. H -254, New Textile Market. Intimation of change of address was given to the opposite party bank vide letter dated 29.03. 2003. Despite that opposite party bank failed to approach the insurance company for change of address of insured premises from Millennium Textile Market to Shop No.H -254, New Textile Market. On 17.05.2003, a fire accident took place at Shop No. H -254, New Textile Market, resulting in destruction of stock of cloth. The insurance claim preferred by the petitioner was repudiated by the insurance company on the ground that said shop where fire accident took place was not insured. According to the petitioner, failure of the opposite party bank to get the change in address of the insured premises in the insurance policy despite of information given amounts to deficiency in service. Thus, the complainant raised a consumer dispute.

(2.) THE respondent opposite party resisted the complaint. In the written statement opposite party denied the allegations of the complainant. It was pleaded that as per the terms and conditions of cash credit facility, the complainant was under obligation to keep the hypothecated goods insured at his own risk and expense and that in compliance of the aforesaid condition, the complainant took the insurance policy by paying premium. The insurance policy was, thereafter, assigned in favour of the bank. It was denied that letter dated 29.03.2003 regarding change of address was received by the opposite party bank.

(3.) THE District Forum on consideration of the facts and appraisal of evidence allowed the complaint and directed the respondent opposite parties to pay a sum of Rs.5.00 lacs to the petitioner with 9% interest p.a. besides Rs.10,000/ - as compensation for physical and mental trauma as also the cost of litigation.