- (1.) BY way of this complaint, the complainant, a partnership firm carrying on business of manufacturing of plastic goods as per the address mentioned in the complaint has prayed for following reliefs "(A) this Hon ble Commission may be pleased to award Rs. 19,92,000/ - in favour of the complainant towards loss suffered on account of damage to factory shed, machinery and future profit due to the cyclone, and the respondent Bank herein be directed to pay the said amount to the complainant forthwith; (B) this Hon ble Commission may be pleased to hold and declare that there was deficiency in the service rendered by the respondent Bank and, therefore, the complainant is entitled to recover the aforesaid amount of Rs. 19,92,000/ -. (C) this Hon ble Commission may be pleased to award cost of Rs. 7,000/ - towards this application, and the respondent herein be directed to pay the said amount to the complainant."
(2.) THE complainant has made following allegations of facts. 2(a) The complainant availed of credit facilities from opponent Bank and has been operating respective accounts for the last around 15 years. By way of security, immovable property of the complainant consisting of factory shed was mortgaged and movable properties consisting of machinery and goods were hypothecated to the Bank. It has been alleged that the opponent Bank used to charge legal expenses and insurance premium for insuring the mortgaged and/or hypothecated properties. The policies of insurance were being taken by the opponent Bank directly on behalf of the complainant. It has been alleged that on 29.11.1995 there was a settlement between the parties with regard to outstanding amount in the respective accounts of advances and Rs. 13,98,000/ - were found due and payable by the complainant to the opponent Bank as per following particulars: Principal Amount Rs. 8,89,000/ - Simple interest Rs. 4,94,000/ - Ins. Premium and legal exps. Rs. 15,000/ - Rs. 13,98,000/ - According to the complainant, full payment was made as per the settlement and the account was closed on 27.2.1996 and MHP account was closed on 4.3.1996. Yet, the Bank did not release the charge either of mortgage or hypothecation on the immovable and movable properties of the complainant. It continued to debit insurance premium to the account of the complainant.
(3.) IT is in the background of aforesaid allegations of facts that the complainant has further alleged that on 18.6.1996 there was heavy cyclone in the area and this resulted into entire roof of the factory shed being blown off and the whole structure falling to ground damaging the machinery and the goods. The complainant wrote to the opponent bank to deliver the policy of insurance to the complainant in order to enable the complainant to claim loss from the Insurance Company. The complainant was informed that no policy of insurance was taken after the expiry of the last insurance policy on 28.9.1995. Vasantlal Shah who was not in service of the Manager of the opponent Bank did not have any reason for giving instruction to the opponent Bank for not taking insurance on account of negotiation for settlement. It has been alleged that the bank charged premium for insurance at the time of settlement as per the particulars set out hereinbefore and it was incumbent upon the opponent bank to renew the existing policy. Due to negligent on the part of the opponent Bank, the complainant had not been able to claim loss on account of cyclone from the Insurance Company. As per the report of the Civil Engineer, damage to the factory building was estimated at Rs. 5,01,150/ - and after deducting the scrap value, it was estimated at Rs. 4,50,000/ -. Restoration of the building would cost around Rs. 6,42,000/ -. Damage to the machinery has been estimated to be Rs. 5,00,000/ - and restricted loss of profit to which the complainant would be entitled is estimated at Rs. 8,50,000/ -. That is how the complainant has claimed Rs. 19,92,000/ - on account of breach of contract in relation to the banking service and deficiency in such service on the part of the opponent Bank.;