The Branch Manager, State Bank of Hyderabad Raichur The Regional Manager, Agriculture Insurance Company of India
...........Respondent(s)
BEFORE:
Complainant(s)/Appellant(s):
OppositeParty/Respondent(s):
OppositeParty/Respondent(s):
OppositeParty/Respondent(s):
ORDER
1. NAME OF THE BORROWER : VEERABHADRAGOUDA R/O. K.HANCHINAL.
2. LANDS SY.NO. & SITUATED AT : 90/A-5.20 Acres at Kontanur(D) }Gorebal
90/B-12.00 Acres at Kontanur (D)} Hobli
3. ACRES : 23 acres. CROP : 146 12.00 Acres at Sidramapur }
Paddy 23.00
4. LOAN SANCTIONED : Rs. 3,00,000/- Eligible loan Rs. 2,30,000/-
5. DATE OF SANCTION :
6. NOTIFIED AREA : VILLAGE: Kontanur(D) HOBLI: Gorebal
Sidramapur
7. NOTIFIED CROP : Paddy.
8. DATE OF COVERAGE/DATE OF : JUNE 2003.
PROPOSAL
9. DECLARATION IN WHICH THE CONCERNED FARMER IS INCLUCED: Jalihal Hobli
10. DATE OF SUBMISSION OF DECLARATION TO AIC, BANGALORE: 27-08-03.
11. ELIGIBLE CROP (INSURANCE AS DECLARED: Rs. 1,39,603-10
IN THE AREA
Sd/-
BRANCH MANAGER Sy.No. Area At
10/2.A 04.00 Hanchinal}Not notified
20/A 03.00 } Area
7.00 Acres }
Total loan sanctioned.
For notified Area 23.00 Acres Rs. 2,30,000/-
For not notified Area 7.04 Acres Rs. 70,000/-
30.00 Acres 3.00,000/-
Ex.R-5 is the Day Book/Ledger. This shows the names of borrowers who have raised the loans from O.P.NO-1 bank and the premium of Insurance Company paid thereon and the situation of lands covering under Hobli. This Extract of Account further shows the complainants name Veerabhadragouda vide Ledger Folio No. 76811 showing loan of Rs. 3,00,000/- raised by him and situation of his land Sy.No. 146 measuring 12 Acres at Sidramapur village coming under Gorebal Hobli.
11. The O.P.No-2 Insurance Company has produced (3) documents at Ex R-12 to Ex.R-14. Ex.R-12 is the Xerox copy of letter dt. 29-03-04 issued by Director of Economic and Statistics to the General Insurance Corporation of India, Bangalore branch regarding forwardal of assessed yield in-respect of Khariff crop 2003-04. This information letter interalia shows the assessed yield of certain crops including paddy crops at Hoblis-wise in Sindhanoor Tq. including Gorebal Hobli. Ex.R-13 is the Xerox copy of declaration forms of Loanee-farmer sent by State Bank of Hyderabad Regional branch, Raichur to the General Insurance Corporation of India, Bangalore regarding declaration of Loanee-farmer of paddy crops of Jalihal Hobli in Sindhanoor Tq. of Raichur district. Ex.R-14 is the Xerox copy of letter dt. 31-12-03 issued by Government of India Ministry of Agriculture addressed to Chairman Bijapur Grameen Bank interalia reads as under:
Sir,
..
Your attention is invited to Para-5 of the Scheme and Operational Modalities on NAIS (copy enclosed) on the seasonality discipline and the role of responsibilities of the financial institutions, which lay down as follows:
In case a farmer is deprived of any benefit under the scheme due to errors/omissions/commissions of the Nodal Bank/Branch/PACs, the concerned institution only shall make good all such losses
Since the delay in submission of premium/proposal of non loanee farmer is on the part of the bank, all claim liability will have to be borne by your Bank.
Yours faithfully,
Sd/-
(S.S. Prasad)
Director (Credit)
12. The documents at Ex.R-3, Ex.R-4 and Ex.R-5 amply shows that the OP.No-1 bank has sent a letter to O.P.No-2 Insurance Company informing that the lands of the complainant were wrongly shown in non-notified area as against the notified area of Gorebal Hobli and sought for settling the claim at the earliest. It also shows that the O.P.No-1 bank has made further correspondence with O.P.No-2 Insurance company for early settlement of the claim of the complainant vide letters dt. 12-08-05 at Ex.R-10, dt. 18-08-05 at Ex.R-6, dt. 15-07-05 at Ex.R-8 and dt. 30-05-06 at Ex.R-7 and lastly on 08-01-07 vide Ex.R-11. From a close perusal of documents at Ex.R-3 to Ex.R-5 in the light of document at Ex.R-13 of O.P.No-2 it clearly manifest that the O.P.No-1 bank for the first time only on 30-11-04 gave correct information regarding covering of lands of the complainant under Gorebal Hobli which is notified as failure of paddy crops by rectifying its mistake of non inclusion of the lands of the complainant sent in the earlier information sent to the O.P.No-2.
13. The Learned Counsel for O.P.No-2 submitted that as per the National Agricultural Insurance Scheme if a farmer is deprived of any benefit under the scheme due to errors/omissions/commissions of the Nodal bank the said institutions only shall make good the loss and so O.P.No-1 being a Nodal Bank-branch is liable to make good the loss as sought for by the complainant and the O.P.No.2 Insurance company is not liable. In-support of his arguments the L.C. has relied upon Letter of Ministry of Agriculture at Ex.R-14 and decision of our Honble State Commission in Appeal No. 162 C/W 398 to 413 and 531 to 547 of 2004 dt. 10-11-04 by filing its Attested true copy and attested certified copy of the order of District Consumer Forum, Davanagere passed in complaints NO. 249 to 260/07 dt. 23-03-07 and submitted that in these two orders the Nodal Bank was held liable to make good the loss for the errors/omission/commission of the Nodal Bank depriving the farmer to the benefit under the scheme.
14. In the above said decision, our Honble State Commission has held the liability of the Nodal Banks to make good the loss for the errors/omission/commission committed in submitting correct information in-respect of the lands of the farmers to the Insurance company keeping open for the Bank to take appropriate legal action for recovery of said money from the Insurance company. Bearing in mind the principles laid-down in the decision of our Honble State Commission, the perusal of documents at Ex.R-3 to Ex.R.5 produced by the O.P.No-1 Nodal Bank it manifest that after the receipt of the letter from their Lead District Manager dt. 30-11-04 the O.P.No.1 Bank sent the correct Information regarding situation of the land of the complainant covering under Gorebal Hobli Limits, as could be seen from the opening sentence of the covering letter of the O.P.No-1 Bank addressed to O.P.No-2 dt. 30-11-04 at Ex.R-3. This itself shows that the O.P.No-1 Bank has committed errors/omission in sending correct information with regard to the lands of the complainant depriving him to receive the compensation from the O.P.No-2 Insurance company in the first instance along with other affected farmers of Gorebal Hobli and thereby we find deficiency in service by O.P.No-1 Bank. Hence we hold that the complainant has proved deficiency of service by O.P.No-1 Bank in sending incorrect information to the O.P.No-2 Insurance Company depriving him from receiving benefits under the Scheme from O.P.No-2 National Insurance Company. So Point NO-1 is answered in the affirmative against O.P.No-1 Bank and in the negative as against O.P.No.2 Company.
POINT NO.2
15. The complainant has sought for payment of crop insurance assured sum of Rs. 3,00,000/- along with 12% interest thereon from 27-02-06 and for payment of Rs. 1,00,000/- towards damages, mental harassment and for payment of Rs. 5,000/- towards cost of litigation. So far as payment of assured sum of Rs. 3,00,000/- is concerned, as discussed in Point No-1, the documents at Ex.R-4 clearly shows the affected area of 23 Acres of the land of the complainant comprising in Sy.No. 90/A, 90/B of Kontanur(D) village and Sy.No. 146 of Sidramapur village covered under Gorebal Limits (Hobli) are covered under notified area of Gorebal Revenue Limits. Even the complainant in Para-4 of his complaint and in his representation letter dt. 23-01-06 at Ex.P-4 has stated that he had submitted declaration in-respect of land Sy.No. 90/A, 90/B and 146 totally measuring 23 Acres of Gorebal (Hobli) for Crop Insurance under N.A.I. Scheme through O.P.No-1. The O.P.No-1 bank in para-6 of the written version has stated that the complainant owned 23 Acres in declared area of Gorebal Hobli and sum assured is at Rs. 2,30,000/- at the rate of Rs. 10,000/- per acre for 23 Acres of his land. The Record of Rights of lands Sy.No.90/A, 90/B and 146 produced at Ex.P-1 to Ex.P-3 shows that in 23 Acres of land the complainant had raised paddy crop for Khariff season of 2003-04. Further the complainant in para-3 of his complaint has also stated that he had insured the paddy crops raised in his 23 Acres land covering under Gorebal Hobli. Of-course the complaint might have raised paddy crops in his other (7) acres of land apart from 23 Acres of his above said lands, but this (7) acres of land are situated at Hanchinal village which is not a notified area. So the complainant is entitled only to Rs. 2,30,000/- to the extent of notified area of 23 Acres of land under notified area of Gorebal Hobli Revenue Limits at the rate of Rs. 10,000/- per acre. Hence the complainant is entitled to Rs. 2,30,000/- being the assured sum of paddy crop insurance in his 23 Acres of land.
Regarding relief of interest at 12% p.a. from 17-02-06 and for payment of Rs. 1,00,000/- towards damages & mental harassment etc., and payment for Rs. 5,000/- towards cost of litigation is concerned, it shows that the complainant is blowing both hot & cold at the same time by claiming interest as well as compensation. However having regard to the facts and circumstances of the case regarding non-settlement of his claim at the earliest along with other affected farmers and having regard to deficiency of service in not settling this claim by the O.P.No-1 bank, we feel it just and proper to award a total compensation of Rs. 25,000/- including cost of litigation. In this view of the matter we pass the following order:
ORDER
The complaint of the complainant is allowed in part only against O.P.No-1 Bank.
The O.P.No-1 Bank shall pay Rs. 2,30,000/- being the assured sum of Paddy Crop Insurance for 23 Acres of the land of the complainant along with Rs. 25,000/- towards damages, mental harassment and cost of litigation.
The O.P. No-1 Bank shall comply this order within two months from the date of receipt of copy of this order.
Office to furnish certified copy of this order to both the parties forth with free of cost.
(Dictated to the Stenographer, typed, corrected and then pronounced in the open Forum on 23-08-07)
Sd/-
Sri. N.H. Savalagi,
President,
District Forum-Raichur.
Sd/-
Sri. Vishwanath Yekkelli,
I/c. Member,
District Forum-Raichur
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