ORDER
22.05.2017
Upendra Jha Member.
This appeal is directed against the order dated 13.11.2013 passed by the District Forum Samstipur is complaint case no.16 of 2010 by which the opposite party- Respondent National Insurance company is directed to pay the insurance amount Rs. 4,7500/- with 12% interest Rs. 50,000/- as compensation and litigation cost to the complainant respondent within 45 days through A/C payee cheque failing which 14% P.A. interest will be payable. As the District Forum has not directed the Insurance company to pay the amount to the Bank hence this appeal.
2. Briefly stated the case is that the complainant a proprietor of M/S Mithila Traders, trading of bricks financed loan from the appellant opposite party Allahabad Bank and insured with the respondent National Insurance Company; due to heavy rain mud bricks and loaded mud bricks in Kiln damaged and washed away causing a total loss of Rs. 9,11,000/-. The opposite parties were informed. After appointment of Surveyor, who assessed the loss the claim of the complainant was not settled. Then, the complainant filed a complaint before the District Forum. The opposite parties- appellant contested the case. The District Forum passed the impugned order against which this appeal is preferred.
3. Respondents have filed written notes of arguments separately Heard.
4. Grounds taken in appeal is that the appellant Bank has advanced loan to the complainant which was insured by the National Insurance company. The liability lies on the Insurance Company and not on the Bank. The loan account of the complainant was declared non performing Assist. (NPA) for non-payment of due loan amount by the complainant. So, the District forum should had to consider that the insurance amount be paid to the Bank to adjust the loan dues but the District Forum has directed the Insurance company to pay the insurance amount through A/C payee cheque to the complainant and not to the Bank. It is not proper. Hence the appeal be admitted.
5. The counsel for the respondent- complainant submits that the national Insurance company Ltd. may aggrieve from the order dated 13.11.2013. But the appellant being aggrieved has filed this appeal which is not clear. The Bank is aggrieved with the order dated 06.06.201. The District forum impugned order dated 13.11.2013 has attained finality and the respondent Insurance company is ready to comply this order. It has deposited Rs. 9,12,331.00/- before the District Forum, Samistipur in Misc. Case No. 01/14 order dated 14.09.2016. In that situation the appeal be dismissed.
6. The counsel for the respondent Insurance company submits that the complainant case is barred by limitation. The occurrence took place in 1999 where as the complaint has been filed in 2010 after 11 years, against the provisions of section 24 of C.P. Act 1986. The district forum has erred in directing the insurance company to pay an A/C payee cheque in favour of the complainant, where as the complainants M/S Mithla Trading is under the hypothecation of the appellant Bank and the loan a/c of the complainant has been declared NPA. Hence, District Forum order is fit to be set aside and the appeal be allowed.
7. Having considered the grounds taken in appeal submissions of parties and on perusal of the order passed by the District Forum, it appears that the complainant has taken loan from the appellant Bank, insured by the respondent Insurance Company. The loan A/C of the complainant has been declared as NPA. If the insurance amount is not paid to the appellant Bank, the public money will be lost.
8. For the reasons stated above. The respondent Insurance Company is directed to pay the Insurance amount Rs. 4,75,000/- with 12% interest and Rs. 50,000/- compensation to the appellant Bank with 45 days from the receipt of this order.
9. The District Forum order is modified accordingly and the Appeal is allowed.
S.K. Sinha Renu Sinha Upendra Jha
President Member(F) Member(M)
Mukund
