SHAKTI PAPER Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) THE complainant, who is a Small Scale Industry and is a Proprietorship Firm, has filed this case to direct the National Insurance Company, represented by opposite party Nos. 1 to 3 to settle the claim in respect to Fire Policy No. 153001/11-13/004/99 for insured sum of Rupees 10 lakh in his favour and to pay interest at Bank's rate and to award exemplary cost against them for causing deficiency in service to him.

(2.) COMPLAINANT's case in brief is that the State Bank of India, Rairangpur Branch, opposite party No. 4 sanctioned vide order dated 18. 3. 1996 cash credit working capital loan Rupees 15,00,000 in favour of the complainant to promote the Industrial unit. As per Clause 5 of the sanction order, the Stock and Store of Raw Material of complainant's Small Scale Unit, which were hypothecated to the opposite party No. 4 Bank, were insured against fire accident with opposite party Nos. 1 to 3. At that time, the stocks of raw material and finished goods such as Exercise Books, Registers, etc. worth Rupees 10 lakh under Insurance Fire Policy No. 153001/11-13/004/99 were kept in the rented house of Swaroop Kumar Giri of Hatabazar, Mayurbhanj and the stocks of raw materials and finished goods worth Rupees 6. 50 lakh under Insurance Fire Policy No. 153001/11-13/005/99 were kept in nearby another rented house of Pritish Sahoo of same Hatabazar. Said two Fire Insurance Policies were entered into in the joint name of opposite party No. 4 Bank and the complainant as per the sanction order of the said Bank. Said Bank paid the premium amount on behalf of the complainant which was being debited in complainant's account.

(3.) THE Insurance Company issued the Cover Note dated 11. 5. 1999 and the policies were valid upto 16. 4. 2000. The related insurance policies are being retained with the Bank. The stock having insured value of Rupees 10 lakh were shifted to the house of the complainant in the year 1997 from the rented house of Swaroop Kumar Giri. In the year 1999, the stock having insured value Rupees 6. 50 lakh were also shifted to complainant's said house from the rented house of Pritish Sahoo. Shifting of stock and finished materials was intimated to the Bank Officials vide letter dated 20. 10. 1999. The Bank officials were regularly visiting the site and were inspecting the stock and finished materials every month and were preparing reports and have shown in their sign board that the stock and finished materials have been hypothecated to the Bank.