::BEFORE THE DISTRICT CONSUMER DISPUTES  REDRESSAL COMMISSION AT BIDAR::

                                                                 C.C. No.89/2023.

                                                                                                                                 Date of filing: 27.10.2023.

                                                              Date of disposal: 19.12.2023.

P R E S E N Ts:-    

                                (1) Shri. Mabu Saheb H.Chabbi,                                                                                                               B.Com.,LL.B.,(Spl.),

                                                                                                  President.,  

                                (2) Kum. Kavita,

                                                               M.A.,LL.B.,(Spl.),  

                                                                         Member.                              

COMPLAINANT/S                 M/s Priyanka General Stores.,

                                                  Rep by Prop Sanjay Daniel S/o Erappa Daniel,

                                                  Age: 59 years, Occ: Self Employment,

                                                  R/o 14-10-321 Eden Colony Bidar-585 401.

                                                  (By Sri Shridhar B. Wadde., Advocate.)       

                 V/s

OPPONENT/S                     1. The Manager, Union Bank of India

                                              (Corporation Bank) Anubhav Complex,

                                               8-10-39, Idira Market, Near Old Bus Stand,

                                               Brahmapurik Post Bidar, Dist: Bidar-585401.

                                               Karnataka.

2.  The Manager, New India Assurance Co.Ltd.,

     # 8-9-265/313, 1^st floor, Padma Kunja Complex,

     Above IDBI Bank, Udgir Road, Bidar-585401.         

                                                  (Op No. 1 & 2 Ex-Parte)

                                                                                             ::  J U D G M E N T  ::

By. Shri. Mabu Saheb H.Chabbi, President.

The complaint is filed by the complainant under section 35 of the Consumer Protection Act, 2019, against the opponents for the deficiency of service caused by not settling the insurance claim by the OPs to the complainant, hence following judgment is passed. 

Brief facts of the complaint.

The brief facts of the complaint are as follows: -

1.         The Complainant obtained the Loan amount of Rs. 23,00,000/- from the OP No. 1 Bank  by mortgaging his house No: 14-10-321, of AFD Colony, (Eden colony), Bidar to start his business.  The complainant purchased insurance policy NOP: 68030111180100000155, covering the period between dated 07.08.2018 to 06.08.2028 with an assured amount of
Rs. 46,70,000/-  to cover the unforeseen incident of the business loan. The complainant after receiving loan amount, developed Priyank General and Kirana stores in the premises No: 14-10-321 at Bidar (Eden Colony) for his livelihood. The complainant obtained all the required licenses, registration and other formalities with electrical connection installed for his shop having meter RR No: 72733C and has been paying electricity bill regularly.   The complainant kept vegetables, grocery, Fast Food, Poultry, Noodles, fish, grains, eggs, cool drinks, gift, stationery items so on in his shop and to display the stocks he made furniture’s and racks mini mall grocery, book store, Online business, Xerox, Mobile recharges etc.,   The whole shop is illuminated by artificial roofing with light with LED bulbs, tubes and colour lighting trips as well as fans and coolers.

2.         On 19.03.2020 at 01:30am  electric fire broke out in the shop of the complainant, one of the neighbor called to fire department but it was too late however the electric fire destroyed the entire shop, stock in goods, furniture, grocery, stationary items, A.C, freeze, Laptop, computer etc., were burnt and resulted in heavy damages to the supper structure building of the entire shop.  The complainant gave complaint regarding fire incident and case was registered in FIR No: 50/2020 at Fire Station Bidar, Panchanama conducted on 16.07.2020, on 20.08.2020 CMC given report that, the structure of building was damaged more than 80%  and advised to re-construct the building. Later on complainant approached to KCRI (Chartered Engineer and Govt. approved valuver) and he has given a report of demolition and  re-construction cost around 23,80,000/-.  As per PC construction report the total cost occurred to repair the building is Rs. 20,71,460/- and the complainant submitted damage report of building assessed by SAROJ and ASSOCIATES that the total damage occurred Rs.23,80,000/-.  The complainant intimated the incident of fire and damage of the shop to the OP No. 2 for his legal claim with all reports, that were assessed by several experts.  But, the Op No. 2 has not settled the claim of the complainant.  Lastly the complainant sent a legal notice through his advocate but the OP neither replied to the notice nor settled the claim of the complainant.  Hence the complaint got filed by the complainant against Ops for claim of insurance and damages.

3.         The complainant had filed the complaint before this commission in CC No. 17/2021 before this commission and the same has been withdrawn by the complainant with the permission to file a fresh complaint by exempting the period taken for filing the previous complaint till the date of withdrawal and the complainant has produced the order sheet in
CC No.17/2021 to substantiate the cause of delay while filing this complaint.  The complainant filed an application U/sec 69 of CP Act to condone the delay of 3 years 7 months to file this complaint.  However the Ops were placed Ex-Parte.  By looking into the records, the delay which has been caused by the complainant to file this complaint is exempted and delay condoned by this commission.   

4.         The notice issued by this commission to the Ops was served upon them but both Ops did not appear before this commission and hence both were placed Ex-Parte.  There is no written version on behalf of Ops. Hence it is an Ex-Parte order against Ops.   

Evidence of complainant.

5.         The complainant himself got examined as P.W.1 by filing his evidence affidavit and complainant got marked Ex.P.1 to Ex.P.18 documents and those are as below.

1.   Ex.P.1-Copy of  Registration certificate.

2.   Ex.P.2-Copy of  Loan sanctioned intimation cum

hypothecation agreement dated 29.06.2018.

3. Ex.P.3- Copy of standared fire and special perils policy.   
4. Ex.P.4-Copy of  Layout pertaining to complainant General store.
5. Ex.P.5-Copy of Khata extract Form 3 (Rule 20) issued by CMC Bidar.
6. Ex.P.6- Copy of Priyanka General Store Menue Card.
7. Ex.P.7-Copy of Fire incident report issued by Fire brigade dt:30.03.2020.
8. Ex.P.8- Copy of Spot Panchanama conducted by revenue Inspector Bidar.
9. Ex.P.9-Copy of Loss certificate Due to Fire issued by CMC Bidar.
10. Ex.P.10-Copy of KCRI Report.
11. Ex.P.11-Copy of cost of demolition and construction certificate issued by PG construction 02.03.2020. 
12. Ex.P.12- Copy of valuation certificate issued by Saroj & Associates Chartered accountants.
13. Ex.P.13&13(a)-Copy of legal notice issued by the advocate of the complainant to the OP No. 2 and Courier service receipt.
14. Ex.P.14- Copy of Sale notice for sale of immovable properties issued by OP No. 1 to the complainant.
15. Ex.P.15- Copy of Aadhar Card pertaining to complainant.
16. Ex.P.16- Copy of letter issued by Op No. 1 to the Sub-Registrar Bidar dated 20.11.2023.
17. Ex.P.17-Copy of track N Trace report.
18. Ex.P.18-Copy of order sheet in CC No.17/2021 issued by DCDRC, Bidar.

6.         The Ops have not appeared before this commission in spite of notice issued by this commission but, they remained absent and were placed
ex-parte.  Hence, there is no written version and evidence on behalf of Ops. 

Points/issues

7.         Complainant argued the matter, based on the pleading and documents of the parties, the points that, arose for consideration are as below. 

1. Whether the complainant proves that, he is consumer to the Ops and further proves the deficiency of service by the Ops?
2. Whether the complainant proves that, he is entitled for any relief as sought in his compliant? 
3.  If so, What orders? 

8.         Our answers to the points raised above are as follows:-

1. Affirmative.
2. Affirmative.
3. As per the final order.  

9.         In order to decide the complaint issues, this commission discussed point No. 1 & 2  altogether as each points are inter related hence, judgement as follows.

10.       In order to prove the case of the complainant, the complainant has examined himself as P.W.1 by reiterating the complaint averments in his Evidence affidavit and got marked documents i.e., Ex.P.1 to Ex.P.16.  The case of the complainant is that,   the Complainant obtained the Loan amount of Rs. 23,00,000/- from the OP No. 1 Bank  to start his business by mortgaging his house No: 14-10-321, of AFD Colony, (Eden colony), Bidar. The complainant purchased insurance policy NOP: 68030111180100000155, covering the period between dated 07.08.2018 to 06.08.2028 with an assured amount of Rs. 46,70,000/-  to cover the unforeseen incident of the business loan. The complainant after receiving loan amount, developed Priyank General and Kirana stores in the premises No: 14-10-321 at Bidar (Eden Colony) for his livelihood. The complainant obtained all the required licenses, registration and other formalities with electrical connection installed for his shop having meter RR No: 72733C and is paying electricity bill regularly.   The complainant kept vegetables, grocery, Fast Food, Poultry, Noodles, fish, grains, eggs, cool drinks, gift, stationery items so on in his shop and to display the stocks he made furniture’s and racks mini mall grocery, book store, Online business, Xerox, Mobile recharges etc.,   The hole shop is illuminated by artificial roofing with light with LED bulbs, tubes and colour lighting trips as well as fans and coolers. On 19.03.2020 at 01:30 Am the electric fire broke out in the shop of the complainant, one of the neighbor called to fire department but it was too late, however the electric fire destroyed the entire shop, stock in goods, furniture, grocery, stationary items, A.C, freeze, Laptop, computer etc., were burnt and resulted in heavy damages to the supper structure building of the entire shop.  The complainant gave complaint regarding fire incident and case was registered in FR No: 50/2020 at fire station Bidar, Panchanama conducted on 16.07.2020, on 20.08.2020 CMC given report that, the structure of building damaged more than 80%  and advised to re-construct the building. Later complainant approached to KCRI (Chartered Engineer and Govt,. approved valuver) and he has given a report of demolition and  re-construction cost around 23,80,000/-.  As per PC construction report the total cost occurred to repair the building is Rs. 20,71,460/- and the complainant submitted damage report assessed by SAROJ and ASSOCIATES that, the damage occurred for an amount of Rs.23,80,000/-.

11.       The complainant has produced Ex P-1 document pertaining to registration certificate issued by commercial Tax Office Bidar on 29.11.2016 to run the business in the property bearing Khata No: 14-10 -321 situated at Eden colony Bidar. The complainant produced Ex P-2 pertaining to the sanction of loan for Rs. 23,00,000/- by the OP No. 1 bank to the complainant on 29.06.2018 by mortgaging the property of the complainant bearing Khata No: 14-10-321 situated at Eden Colony, Bidar. The complainant produced Ex P-5 Khata extract issued by CMC Bidar pertaining to the property of the complainant bearing its No: 14-10-321, which is situated at Eden Colony, Bidar.  

12.       The complainant produced Ex P.3 document pertaining to policy bearing No: 68030111180100000155 covering the period between 7.08.2018 to 6.08.2028 with the premium of Rs. 22,126/- including the GST with the sum assured of Rs. 46,70,000/- in the name of complainant.  In the said policy, the building and supper structure of the building is covered under the said policy for any inevitable perils.   In view of this Ex P-3 insurance policy, the complainant is a consumer to the Op No. 2 and Op No. 2 is service provider to the complainant and hence complainant proved as consumer to the Op No. 2.

13.       The complainant submitted that, in the above said property, due to electric Fire the items which were stored in the said premises were burnt and destroyed and the said building also destroyed by burning, to substantiate this facts the complainant has produced Ex P-8 the Panchanama conducted by revenue inspector Bidar South Eden Colony and the loss of glossaries, loss of furniture’s, books, stationary, Cash Rs. 50,000/-, fridge, printers, laptop, copy machine were destroyed due to Fire and Rs.23,23,000/- assessed as loss to the complainant.  The complainant produced another document Ex P-7 which has been issued by Fire Brigade Bidar dated 30.03.2020 regarding the loss of property belonging to the complainant due to Fire incident occurred on 19.03.2020 and details of item  are also been noted in the report.   The complainant also produced Ex P-6 Menue Pamphlet pertaining to his business which shows the stokes of the Groceries in his shop.  The complainant produced another document Ex P-9 issued by CMC Bidar on 28.08.2020 stating that, the building situated at Khata No. 14.10.321, Eden Colony, Bidar damaged to the extent of more than 80%.

14.       The complainant produced Ex P-10 KCRI chartered engineer and Govt approved valuver report regarding the loss and damage to the building of the complainant to the extent of Rs. 23,80,000/- including cost of demolition of Rs. 2,50,000/-. The complainant produced another document Ex P-11 the PG construction report also observed the total loss and construction and cost of demolition as Rs. 20,71,460/-.   The complainant produced Ex.P.12 document issued by Saroj and associates chartered accountants report pertaining to the cost of demolition and cost of ground floor constriction to the extent of Rs. 23,80,000/-

15.       On going through the  document Ex P-10 and Ex P-12 reports given by KCRI and Saroj and associates chartered accountants report both are having similar assessment of loss to the extent of Rs. 23,80,000/-  and hence this commission is of the opinion to consider these two documents Ex P-10 & 12 for assessment of loss caused to the complainant.   The policy coverage as per Ex P-3 the claim of complainant is to the extent of
Rs. 46,70,000/- but the complainant is not entitled to that amount, however the complainant is entitled for the loss due to Fire to the extent of Rs. 23,80,000/-.

16.       The complainant has issued legal notice on 29.09.2023 to the Op No. 2 regarding the Fire incident and details of loss caused to his building as well as Groceries item including furniture, and other stationary and electronic item and claim Rs. 23,80,000/- for the loss caused due to Fire incident.  But, the Op No. 2 has not replied to the notice /nor settled the claim of the complainant.  The said notice is marked as per Ex P-13, issued through courier service on 29.9.2023 and its was served on 29.09.2023 vide its consignment No: BDR502940 to the Op No. 2 company. The complainant produced the Track N Trace report as per Ex P-17 to prove the service of notice to the OP No.2.

17.       The complainant filed complaint before this commission in CC.No.17/2021 against OPs, but the complainant with drawn the case with the permission to file fresh complaint.  The complainant produced Ex.P.18 the copy of order sheet in CC No.17/2021 and this commission accorded permission to file fresh case to the complainant.  In view of that the time taken to file and withdrawn the case in CC.No.17/2021 before this commission is excluded and find this compliant is well within time.

18.       In view of the above said discussion the complainant has proved his case against Op No. 2 for claiming the insurance amount for the loss caused by him due to Fire incident occurred accidently in his building. The complainant is entitled for insurance claim based on Ex P.3.  The complainant has produced Ex P.16 document issued by OP No.1 stating that, the loan which has been availed by the complainant from Op No. 1 bank has been cleared on 1.06.2020 and No Due Certificate  has been  issued to the complainant as per Ex.P.16.  In view of this clearance of loan by the complainant the Op No. 2 is not suppose to pay any insurance amount to the Op No. 1 for repayment of loan amount on behalf of complainant to the Op No. 1 and hence the Op No. 2 is liable to pay insurance amount to the complainant and hence the complaint against OP No.1 is liable to dismiss.  From the above discussion, the complainant has proved his case against OP No.2 and accordingly, answered point No. 1 and 2 in the affirmative in favour of complainant and proceed to pass the following order. 

::ORDERS::

The complaint filed by the complainant U/sec 35 of consumer protection Act 2019 as against OP No. 2 is hereby allowed in part. 

The OP No. 2 is hereby directed to pay an assured amount of Rs.23,80,000/-(Rupees Twenty-three lakhs Eighty-thousand only) to the complainant based on Ex.R.3 policy No.68030111180100000155, within 45 days from the date of this order.  The OP No. 2 is further directed to pay the interest at the rate of 9% p.a. from the date of legal notice Ex P13 dated 29.09.2023.

The OP No. 2 is hereby directed to pay compensation of the sufferance and loss to the complainant of Rs.25,000/- and litigation charges Rs.5,000/- to the complainant.  The complaint against OP.No.1 is hereby dismissed.             

            Intimate the parties accordingly.                        

 (Typed to our dictation then corrected, signed by us and then pronounced in the open Commission on this   19^th day of December-2023).

Documents produced by the complainant.

1.   Ex.P.1-Copy of  Registration certificate.

2.   Ex.P.2-Copy of  Loan sanctioned intimation cum

hypothecation agreement dated 29.06.2018.

3. Ex.P.3- Copy of standared fire and special perils policy.   

4. Ex.P.4-Copy of  Layout pertaining to complainant General store.

5. Ex.P.5-Copy of Khata extract Form 3 (Rule 20) issued by CMC Bidar.

6. Ex.P.6- Copy of Priyanka General Store Menue Card.
7. Ex.P.7-Copy of Fire incident report issued by Fire brigade dt:30.03.2020.
8. Ex.P.8- Copy of Spot Panchanama conducted by revenue Inspector Bidar.
9. Ex.P.9-Copy of Loss certificate Due to Fire issued by CMC Bidar.

10.Ex.P.10-Copy of KCRI Report.

11. Ex.P.11-Copy of cost of demolition and construction certificate issued by PG construction 02.03.2020. 
12. Ex.P.12- Copy of valuation certificate issued by Saroj & Associates Chartered accountants.
13. Ex.P.13&13(a)-Copy of legal notice issued by the advocate of the complainant to the OP No. 2 and Courier service receipt.
14. Ex.P.14- Copy of Sale notice for sale of immovable properties issued by OP No. 1 to the complainant.
15. Ex.P.15- Copy of Aadhar Card pertaining to complainant.
16. Ex.P.16- Copy of letter issued by Op No. 1 to the Sub-Registrar Bidar dated 20.11.2023.
17. Ex.P.17-Copy of track N Trace report.
18. Ex.P.18-Copy of order sheet in CC No.17/2021 issued by DCDRC, Bidar.

Document produced by the Opponent.

-Nil-

Witness examined.

Complainant.

P.W.1- Sri. Sanjay Daniel S/o Erappa Daniel,               (complainant).   

Opponent.

     -Nil-