Costs deposited.

          Respondent/complainant obtained a loan from the petitioner on 05.11.1999 to purchase a truck.  As per the Agreement, EMI was fixed at Rs.8000/- for a period of five years.  The said truck was hypothecated to the petitioner as security against the loan.  The said truck was under third party insurance for the period of one year w.e.f.

October, 1999 to September 2000 which was renewed on 07.9.2000.  It is alleged by the complainant that the petitioner after renewing the policy debited the premium to the complainant’s loan account but did not hand over the policy cover to the complainant for the period from 06.9.2001 to 05.9.2002, as a result of which he could not get the Fitness Certificate from the RTO resulting in heavy financial loss to him.  Aggrieved by this, the respondent filed a complaint before the District Forum.

          District Forum allowed the complaint and directed the petitioner to pay a sum of Rs.1,92,000/- and interest @ 19% p.a. taking the loss of earning to the respondent @ 1600/- per month for the period from 06.1.2001 to 07.9.2002.  Thereafter, till realization @ 6% p.a.             Rs. 1000/- were awarded as costs. 

          Aggrieved against this, both the parties preferred separate appeals before the State Commission which have been dismissed by the impugned order.

          We agree with the view taken by the foras below.  Petitioner had taken the insurance policy on behalf of the loanee.  The petitioner could not retain the policy with it.  It was its duty to hand

-3-

over the policy to the loanee to enable him to ply the vehicle on road.  Without insurance policy, the loanee could not have plied the vehicle which resulted in heavy loss to him.  District Forum awarded interest @ 19% p.a. as the petitioner himself was charging interest @ 19% from the respondent/complainant on the loan amount.  Thereafter, till realization interest @ 6% p.a. was granted.

            We do not find any substance in the revision petition.  Dismissed.