ASHOK KUMAR KALRA Vs. ALLAHABAD BANK

JUDGEMENT

(1.) Mr. Justice K.S. Gupta, Presiding Member-This revision is directed against the order dated 21.2.2006 of Consumer Disputes Redressal Commission Haryana, Chandigarh allowing appeal against the order dated 18.9.2003 of a District Forum and dismissing the complaint. The District Forum had accepted the complaint with direction to the respondent/opposite party bank to pay amount of Rs. 69,000 with interest @ 10% p.a. to the petitioner/complainant.

(2.) In nutshell, the facts giving rise to this revision are these. Petitioner took loan of Rs. 1,50,000 for purchasing a tractor from the respondent in the year 1995. To secure loan amount, land measuring 74 kanals was mortgaged with the bank by the petitioner. Hypothecation agreement dated 7.1.1996 was also executed by the petitioner in favour of respondent bank. It was alleged that on 5.9.1997 the tractor bearing registration No. O7B-4574 met with an accident wherein one Abudal Gani died. In a petition filed by the deceased's father before Motor Accident Claims Tribunal the petitioner had to pay Rs. 69,000 by way of compensation to the father of deceased. It was stated that under hypothecation agreement the insurance premium of tractor was to be paid by the respondent and debited into the account of petitioner. However, bank did not pay the premium to Insurance Company. Complaint seeking payment of Rs. 69,000 paid to the deceased's father and Rs. 50,000 by way of damages on account of mental agony was filed which was contested by the respondent. Plea taken by the respondent was that under para IX of hypothecation agreement dated 7.1.1996 it was the duty of petitioner and not the respondent to get the tractor insured and pay premium.

(3.) Submission advanced by the learned Counsel of petitioner is that on the asking of petitioner the respondent bank had earlier paid premium to the Insurance Company and the State Commission acted erroneously in setting aside the order of District Forum. Reliance was placed on the decision in State Bank of India v. Tarlok Singh & Ors., AIR 1992 Delhi 76. Para IX of said hypothecation agreement which is material, is reproduced below: