PRADEEP KUMAR JAIN Vs. CITI BANK

JUDGEMENT

(1.) THIS Original Complaint by Shri Pradeep Kumar Jain, Proprietor of M/s. Jain Furniture House under Section 21 read with Sections 12,13 and 14 of the Consumer Protection Act, 1986 against the Citi-Bank, Opposite Party No. 1 and oriental Insurance Company Ltd. Opposite Party No. 2, has arisen out of an unfortunate accident on 15.8.1990 of Car No. DAJ-4111 purchased by the Complainant partly with the loan advanced by Opposite Party No. 1 under its "uto Loan Scheme" and allegedly insured with Opposite Party No. 2 at the time of accident.

(2.) THE facts relevant for the disposal of the complaint need only be noticed as established from the affidavit of Shri Pradeep Kumar Jain dated 24.12.1993 by way of evidence in support of the complaint. The Complainant approached the Citi-Bank with a request to finance the purchase of Maruti Car under its "Auto Loan Scheme". The Citi-Bank agreed to advance a loan amounting to Rs. 63,798/- towards purchase of a Maruti Car, the balance being payable by the Complainant himself. There total purchase price of the Maruti Car was paid to M/s. Agarwal Motors, the authorised dealer of Maruti Cars and Car No. DAJ -4111 was registered in the name of the complainant subject to hire purchase endorsement in favour of the Citi-Bank. The insurance cover was obtained from the 2nd Opposite Party for the period 21.1.1989 to 20.1.1990 with the insured value including accessories of Rs 86,655/-. The Complainant gave to the City-Bank 36 cheques without date in the name of the Citi-Bank, each cheque for Rs. 2,316/- representing the equated monthly instalments in order to liquidate the loan with interest within a period of three years.

(3.) THE Complainant deposed that for renewing the insurance for the next two years 120.1.1990, he gave to the Citi-Bank two cheques in the name of the 2nd Opposite Party bearing Nos. 126290 and 126291 without date and this is recorded in the record slip of the cheque book filed on record; that an assurance was given by the Citi-Bank that it would take policies for subsequent two years beyond 20th January, 1990, the cheque towards premium having already been delivered to the Citi Bank which in turn was passed on by the Citi-Bank to the 2nd Opposite Party and that there was nothing further that the Complainant was required to do to seek renewal of the policy for the said two subsequent years. He further deposed that on 15th August, 1990, at about 10.00a.m. while he was driving the Car No. DAJ-4111 along with Shri R.D. Jain, Smt. Madhu Jain, Smt. Rukmini Jain, Master Ankit and Master Rahul as passengers therein, it met with an accident with Truck No. MP-9-1548 in which the ca r became total loss and while he survived, the other occupants of the car succumbed to the injuries.