ORDER
M.B. Shah, J. (President)
1. By judgment and order dated 13th August, 2003, MP. State Consumer Disputes Redressal Commission, Bhopal, allowed the appeal of the complainant and arrived at the conclusion that as the Bank failed to deposit insurance amount with the Insurance Company on due date, there was deficiency in service on its part and was liable to pay damages suffered by the complainants.
2. In short, the State Commission arrived at the conclusion that on the instructions of the complainants the Bank debited a premium of Rs. 2,407 and prepared a draft dated 5th February, 2001 in the name of the Branch Manager, New India Assurance Co. Ltd., Shajapur. However, the same was not sent to the Insurance Company on the said date but was sent to the Insurance Company on 15th February, 2001 with an accompanying letter. On the basis of the said draft, the policy covering the risk from 16.2.2001 to 15.2.2002 was issued.
3. The tractor for which the insurance policy was taken met with an accident on 11.2.2001. Hence, the Insurance Company was held not liable to pay the damages suffered.
4. In this revision petition the learned Counsel for the Bank submitted that the impugned order is erroneous because the draft was prepared on 5th February, 2001 and was sent on the same date. In our view this submission cannot be accepted in view of the definite finding recorded by the State Commission on the basis of the affidavit filed by the Development Officer to the effect that he had received the draft only on 15.2.2001.
5. Learned Counsel for the petitioner next contended that as per the terms of the hire purchase deed the Bank is not liable to take the insurance policy. For this purpose he referred to Clause 15 which provides as under:
15(a). The borrower shall at its own expense insure and keep insured the hypothecated goods against all risks required by law and also against fire and such other risks as the Bank shall from time to time require for the full market value thereof in one or more insurance offices approved by the Bank and shall deliver to the Bank the policies of insurance duly assigned to the Bank and shall keep on foot and maintain such insurance throughout the continuance of the security and deliver to the bank the renewal receipt therefore. The borrower shall not do or omit to do any act, deed or thing whereby the insurance policy may become void or voidable.
(b) In default of the borrower doing so, the Bank may (but shall not be bound to) keep in good working order and condition and render marketable the hypothecated goods or effect such insurance and may pay all taxes, assessments, dues, duties, charges, fees and outgoings payable by the borrower. Any premium paid by the Bank or any other amount paid by the Bank under this clause and any costs, charges and expenses whatsoever incurred by the Bank shall be repaid by the borrower on demand forthwith and until repayment with interest at the rate aforesaid the same shall be a charge on the hypothecated goods. All sums received under such insurance shall be applied in or towards liquidation of the amount for the time being due hereunder to the Bank.
6. This clause gives the option to the Bank to take the insurance policy. In the present case, the Bank has exercised the option of taking the policy. As requested by the complainant premium amount of Rs. 2,407 was debited in the account of the complainant; the draft in the name of the Insurance Company was prepared for the said amount on 5th February, 2001; however, was not sent on the said date. As found by the State Commission there was delay in sending the said premium and that delay proved fatal in the present case. For that deficiency the Bank is to be held liable.
7. In view of the above discussion we find no force in the revision petition and dismiss the same. There shall be no order as to costs.
