STATE BANK OF INDIA Vs. M/S. INDRANIL

JUDGEMENT

(1.) The present Revision Petition has been filed under Sec. 21(b) of the Consumer Protection Act, 1986 ("the Act ") against the State Consumer Disputes Redressal Commission, Gujarat, Ahmedabad ( "the State Commission') order dtd. 17/10/2018 in Appeal No.1606 of 2013 dismissing the Appeal filed by the Petitioner/OP-2 against the District Consumer Disputes Redressal Forum, Surat ( "the District Forum') order dtd. 30/7/2013 partly allowing the Complaint.

(2.) For convenience, the parties are referred to as placed in the original Complaint filed before the District Forum.

(3.) Brief facts of the case, as per the Complainant, are that the Complainant partnership firm consisting of two partners, Complainant No. 1 and Complainant No. 2. The firm obtained a loan from State Bank of India SBI (OP-3), mortgaging property at Ward No. 1, Nondh No. 1/1898 Sheri, Nanpura, Surat), with SBI. Towards securing the loan against the insured property, at the expense of the Complainants the SBI obtained an insurance policy No. 230300/11/03/11/00000925, valid from 28/12/2005 to 27/12/2006. however, under the policy it erroneously insured the partnership firm itself instead of the specified mortgaged property. During torrential rains and flooding in Surat on 12/8/2006, the mortgaged residential property sustained structural damage estimated at Rs.15.00 lakh. Upon receiving the policy from SBI and discovering the error, the Complainants filed a claim with OP-1 (the insurance company) on 11/6/2006. The insurer appointed a surveyor, Mr. Ashutosh Desai on 16/8/2006 but ultimately repudiated the claim on 7/9/2006 citing "no insurable interest" based on the surveyor's report, since the property stated in the policy and the damaged property were different. OP-2 - SBI subsequently requested the insurer correct the address and honour the claim on 8/9/2006. But, the insurer reaffirmed the denial the same day. Aggrieved by this repudiation and alleging negligence by both OPs, the Complainants approached the learned District Forum and filed a complaint.