Decided on August 17,2020

National Urban Cooperative Bank Ltd. Appellant
M/S. Khandelwal Rubber Products Pvt. Ltd. Respondents


- (1.) This appeal has been filed by the appellant National Urban Cooperative Bank Limited and anr. challenging the order dated 22nd December 2010 passed by the State Consumer Disputes Redressal Commission Uttar Pradesh, (in short 'the State Commission') in consumer complaint No. 75 of 2003.
(2.) Brief facts of the case are that the respondent no.1/ ccomplainant after obtaining financial assistance of Rs.25 lakhs from appellant/OP1 started unit in 1994 but for want of adequate financial assistance, the unit worked at 15% capacity only for 6 years and it was in Oct 2000 that OP1 extended financial assistance by sanctioning cash credit limit of Rs.25 lakhs. Immediately after the unit was extended financial assistance, the Bank suo moto got the unit insured under fire and special perils policy for Rs.28 lakhs with New India Assurance Co. Ltd. w.e.f. 30.01.2001 to 29.01.2002 in respect of building, machinery and stock. Before the expiry of said policy, complainant asked the Bank to take insurance policy like previous year. After the fire incident on 7.10.2002, complainant sent a letter dated 10.10.2002 to OP1to do the needful in order to expedite the insurance claim so that the complainant can pursue the matter with the insurance company. It has been alleged that OP2 (Secretary/GM of the Bank) vide letter dated 17.10.2002 made false and frivolous allegations against the complainant. Complainant filed the consumer complainant against malafide act of OP for not renewing the insurance policy. State Commission vide order dated 22.12.2010 partly allowed the complaint and directed OP to pay Rs.29,30,262/- along with 9% interest p.a. and to give benefit of dividend @ 9% on the share money of Rs.2,50,000/- to the complainant.
(3.) Hence, appeal has been filed by OP1-2.;

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