Mr. Justice M.B. Shah, President—It is the case of the complainant that he is the proprietor of M/s. M.H. Textiles having its registered office at Islam Nagar (Naya Tola), Bhikhanpur, Gumti No. 3, Bhagalpur, Bihar, dealing in the business of manufacturing and sale of silk fabrics specially of export variety of various types. He was engaged in the said business for several years and was receiving orders from various big exporters of the country for supply of silk fabrics and materials from time-to-time. In the year 1994 one Mr. Jagdish S. Grover, Proprietor of M/s. Tartons, New Delhi, a big export firm, had placed orders with the complainant firm for manufacture and supply of silk fabrics (Matka-Noil) worth Rs. 60,01,000/-. For this, an agreement was executed between the parties on 6.8.1994. Shri Grover handed over silk yarns worth Rs. 5 lakhs to the complainant in advance. It was also agreed that Shri Grover would pay the amount of invoices from his cash credit account with Allahabad Bank, Bhagalpur Branch, Bihar.

2. On execution of the aforesaid agreement, the complainant requested the Allahabad Bank, University Branch, Bhagalpur, Bihar to enhance his cash credit limit. The same was accepted and the cash credit limit was enhanced upto Rs. 32 lakhs and O.D. (Over Draft) of Rs. 6 lakhs was also given to the complainant to meet the said order. For this, the entire stock of the complainant was hypothecated with the said Bank. As per the norms the Bank was having monthly check of the stocks as well as stock-book, ledger, cash book, etc. which were regularly maintained by the complainant.

3. As per the agreement, the complainant was to deliver the goods to M/s. Tartons upto 30th November, 1994. The delivery schedule, thereafter, was extended upto 15th January, 1995, because of unavoidable circumstances and on the request of Mr. Grover.

4. The material manufactured by the complainant was kept in the godown. Because of deteriorating law and order situation in that area, as the complainant did not afford to take any risk, and the goods were very costly, an insurance policy for a sum of Rs. 60 lakhs against burglary; Rs. 5 lakhs against furniture and fittings, was taken for the period from 26th December, 1994 to 25th December, 1995. The cover note of the insurance policy is produced on record (Annexure-D). He also took another policy against fire for the same period. The cover note is Annexure-D-1.

5. The entire goods were ready for supply on 25th December, 1994 and the complainant was waiting for arrival of the representative of M/s. Tartons to take delivery of the goods. The law and order situation was bad and the complainant was anxious about this. On 2nd January, 1995 he received a telephone call from an unknown person asking him to pay a ransom of Rs. 5 lakhs at a place near Yogia River near a Palm Tree at 7 p.m., and threatened the complainant of dire consequences if there was failure. The complainant informed the local police and lodged the information with the Chief Judicial Magistrate, Bhagalpur, Bihar, but in vain. Thereafter, during the intervening night of 5th and 6th January, 1995, armed dacoits raided the house and godown of the complainant, when he was sleeping, and at the pistol point took away the cash, ornaments as well as the major portion of the stock of silk fabrics which was kept ready for supply, which was hypothecated with the Bank. The dacoits with the intention to kill the complainant fired at him with the pistol on his chest, but the bullet hit the complainant on his left arm. Because of the injury he became unconscious and was admitted to J.L.N. Medical College & Hospital, Bhagalpur for treatment. During the treatment, the police recorded his statement on 6th January, 1995 at 4.30 a.m. and a case was registered. Investigation started and the Police submitted its final report.

6. As the complainant was lying in the hospital his nephew sent a written information to the Divisional Manager of the I