Navin Chandra Sharma, President - This complaint was filed by M/s New Jaipur Dying and Tent Works, Jaipur before this State Commission on 24.3.1990 claiming a compensation of Rs. 7,35,000/- apart from bank interest on principal amount of Rs. 3 lacs @ 12% per annum till its realisation. According to the complainant, it is a registered partnership firm doing business or Tent manufacturing and other ancilliary products at D-31, Ram Nagar, Shastri Nagar, Jaipur. It is said that the complainant-firm was established w.e.f. 23.8.1985 and was registered as a small scale industry's unit with the Government of Rajasthan and with the competent authority in law. For the purpose of developing its business and competing with other manufacturers of Tents and ancilliary products, the complainant sought credit facility through a Credit Limit from M/s Canara Bank, M.I. Road Branch, Jaipur. The said bank granted a credit limit to the complainant firm for a total amount of Rs. five lacs and fifty thousand. While granting credit limits to the complainant-firm, the Canara Bank had sought hypothecation of the properties of the Firm in the form of manufacturing goods and other related properties available at the factory site and the Bank people were making continuous efforts to note down latest stock position of the complainant-firm every month and further to safeguard the amount of the credit limit by hypothecated goods, the Canara Bank got insured factory property through an insurance coverage against burglary and the same was got done by the National Insurance Co. Limited through two different notes. Alongwith the complaint photocopy of cover note No. 321729 issued by the opposite party No. 1 on 2.2.1988 has been annexed as Annexure 3. It has been alleged by the complainant that this insurance had specifically been made to cover risk of stock and stock in process of cloth of all kinds, canvas, chemicals and similar other goods used for the manufacturing of tents whilst stored and/or lying in a first class factory situated at D-31, Shastri Nagar, Jaipur. The insurance premium amount was initially paid by the Bank but ultimately it was debited against complainant-firm in its bank account at the Canara Bank.

2. According to the complainant, during the night of September 17, 1988 whet) the partners were away at their brother's residence, a burglary took place by breaking locks etc. and the entire stock stored and lying at the factory site D- 31, Shastri Nagar, Jaipur was burgled by the burglars. Next morning when Vijay Shanker Vyas, Managing Partner of the complainant-firm arrived at the factory site, he found the doors locks broken and the stocks items absent from the site. He lodged an F.I.R. at Police Station, Shastri Nagar, Jaipur on 18.9.1988(Annexure 5). A list of stock of goods burgled(Annexure 6) was submitted to the police. The complainant's case is that on account of this burglary, it suffered a loss of about 9,14,74 7.45. It is said that during investigation, the police could make partial recovery from Amanishah ka nala, near Shastri Nagar where the recovered goods were lying as abandoned and they were identified by the Managing Partner of the firm. Ultimately however, the officer-in-charge of Police Station, Shastri Nagar submitted a final report to the court to the effect that it had not been successful in tracing the theft and it may be permitted to close down the investigation. The Judicial Magistrate accepted the final report.

The complainant has further proceeded to state that the theft was reported in writing on 28.9.1989 to the Canara Bank so as to take appropriate action in the matter though prior to the written complaint, the Bank people had verbally informed on 19.9.1988 on telephone as 18.9.1988 was Sunday. On 21.1.1989, the complainant Firm through its Managing Partner submitted burglary claim with respect to insurance cover note(Annexure 3).

The complainant had further mentioned that it had also another burglary cover insura