S.R. BIO CHEM Vs. ORIENTAL INSURANCE COMPANY LTD.
LAWS(NCD)-2020-1-66
NCDRC
Decided on January 15,2020

S.R. Bio Chem Appellant
VERSUS
ORIENTAL INSURANCE COMPANY LTD. Respondents

JUDGEMENT

ANUP K.THAKUR - (1.) This Consumer Complaint No.1166 of 2016 has been filed by M/s. S.R. Bio Chem, a registered partnership firm, engaged in manufacture of Ascorbic Acid I.P. (Vitamin C). Mr. Satish Mehra, partner has been duly authorized to file the present complaint.
(2.) The complainant had started erection of their factory in 2005 at Plot No.10A and 10B, Goalthai Industrial Area, Phase II, Bilaspur, Himachal Pradesh and completed the same in 2007. It commenced production of Vitamin 'C' in 2008. The complainant enjoyed credit facilities from Oriental Bank of Commerce (OP3-Bank hereafter) for such as term loan, cash credit against hypothecation and import/inland/letters credit on general terms and conditions as detailed in the sanction letter dated 10.02.2006. One such condition was that the assets financed shall be fully and comprehensively insured, with agreed bank clause, with premium borne by the complainant. Accordingly, insurance was taken and renewed every year. The last credit facility was vide sanction letter dated 25.9.2012 (Annexure:C-1), for, inter-alia, cash credit of Rs.2.90 Crore for the period 25.9.2012 to 24.9.2013. Among the conditions for this was to keep assets/securities charged to the bank, movable or immovable, comprehensively insured with "Agreed Bank Clause for the full value at the borrower's cost"?.
(3.) It has been stated in the complaint that OP3-Bank had a tie up with OP1-Oriental Insurance Co. Ltd. (OP1 hereafter) and that, at the instance of OP3, the complainant took in 2013 a Standard Fire and Special Perils Policy (Policy hereafter) to insure their plant and machinery, building and manufacturing of all kinds of chemicals, pharmaceuticals etc. The premium was paid by debiting the account of the complainant with OP3. This policy was renewed by OP3-Bank debiting the complainant's account for a gross premium of Rs.2,80,829/- to obtain policy no.124500/11/2014/5 dated 12.04.2013 for the period from 10.04.2013 to 09.04.2014, providing insurance cover for (i) plant and machinery : Rs.3.50 Crore, (ii) building : Rs.80,00,000/-, (iii) stock of all kinds of chemical etc. : Rs.5 Crore, subject to "Reinstatement Value Policies Clause"? and "Agreed Bank Clause"? (Annexure: C-2 (Colly). Statement of account of the complainant's bank account showing debit of Rs.2,80,829/-, premium amount is at Annexure : C-3.;


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