Respondents/complainants were having a Kisan Credit Card (KCC) issued by the State Bank of India, respondent no.1 herein, on mortgaging their land with the latter on the basis of which they were given loan and insurance after charging premium.  Under the scheme, farmers are given various crop loans and in case of shortfall in crop the loss is compensated by payment of money.  On 30.08.2008, complainant (revision petition 2719/2010) took loan of Rs.50,000/- from the state Bank of India, respondent no.1 herein,

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which after fixing the guaranteed yield, took a premium of Rs.1750/- from the complainants and deposited the same with the Agriculture Insurance Company, petitioner herein.  There was loss in the crop yield and the complainants applied to the State Bank of India for waiving off the loan.  As the complainants did not get satisfactory reply, they filed the complaint before the District Forum.

District Forum allowed the complaint and directed the petitioner insurance company as well as the State Bank of India to pay Rs.5,000/- to the complainant along with costs of Rs.1,000/- jointly and severally within one month of the order, failing which the interest at the rate of 9% per annum was made payable on the aforesaid amount. 

Petitioner insurance company as well as the State Bank of India filed separate appeals before the State Commission.  The State Commission did not club the two sets of appeals and took up the appeals filed by the petitioner and dispose them off by the impugned order without recording any reasons in support of the conclusion arrived at.

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          Petitioner insurance company being aggrieved has filed the present revision petitions.

          The appeals filed by the State Bank of India are still pending before the State Commission.

          Limited notice was issued to the State Bank of India to determine inter-se liability to pay compensation between the petitioner and the Bank.  Petitioner was directed to pay the awarded amount to the complainants/respondents no.2, which was subject to the final order in the revision petitions. 

          Counsel for the petitioner states that the amount, as per direction issued, has been disbursed to the farmers.  Inter-se liability of the petitioner and the respondent no.1 is yet to be determined. 

The State Commission being the first court of appeal is a court of fact as well as law.  It was required to record reasons in support of conclusion arrived at.  From the perusal of the order of the State Commission, we find that the State Commission has not recorded any reasons in support of conclusion arrived at.  The order being non-speaking is liable to be set aside. 

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          Accordingly, the impugned order is set aside and the cases are remitted back to the State Commission to decide it afresh in accordance with law by recording reasons in accordance with law.

          Parties through their counsel are directed to appear before the State Commission on 03.11.2011.

          State Commission is directed to dispose of the appeals filed by the petitioner as well as the State Bank of India together to avoid any inconsistent or contradictory orders being passed.

          Inter-se liability to pay between the petitioner and the respondent no.1 shall be subject to the decision of the State Commission.  In case, it is held that it is the State Bank of India to pay the amount and not the petitioner, then the State Bank of India shall pay the amount paid by the petitioner to the farmers along with interest @ 9% from the date of payment till realization.