Date of Filing : 26.04.2016 Date of Disposal : 17.02.2022 BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

DATED:17.02.2022 PRESENT HON’BLE Mr JUSTICE HULUVADI G RAMESH:PRESIDENT Mr K B SANGANNANAVAR: JUDICIAL MEMBER Mrs DIVYASHREE M :LADY MEMBER CONSUMER COMPLAINT No.104/2016 M/s S J Syndicate Represented by its Proprietor Mr Syed Khadeer, No.2, 1^st Floor, 2^nd Cross, Nizammuddin Street, Baba Lane, Mysuru Road Chamarajpet, Bengaluru – 560 018 Complainant (By Sri Jagadeesh Mundaragi, Advocate)

V/s

1) State Bank of Mysore (Now State Bank of India), M G Road Branch, No.87, Almas Centre, 2nd Floor, M G Road, Bengaluru.

Represented by its Assistant General Manager

2) State Bank of Mysore (Now State Bank of India)

Head Office, K G Road, Bengaluru – 560 009.

Represented by its General Manager (Now State Bank of India is amended as per order dated 11.06.2019)

3) The National Insurance Company Ltd., 1st Main Road, Gandhinagara, Bengaluru – 560 009. . Opposite parties (By Mr Janardhan Reddy, Advocate for OP3)

ORDER

HON’BLE Mr JUSTICE HULUVADI G RAMESH, PRESIDENT , 1. This is a complaint filed U/s.17 of CP Act1986, with a prayer to direct the OPs, to pay a sum of Rs.53 lakhs with interest @ 18% p.a. from the date of an alleged Fire Accident which resulted in loss to be incurred by the Complainant in his factory and to pay a sum of Rs.10 Lakhs as Compensation towards mental agony, torture, hardship and inconvenience caused and grant such other reliefs.

2. The Complainant is a Proprietary Concern and was engaged in Plastic scrap dealing business and also sale of Note-books and text books in the name & style of SJ Syndicate. In the beginning, he was doing the business of purchasing & selling the used plastic scrap, thereafter, in the year 2001, he started the business of re-cycling of the plastic by Machines, for which purpose, the Complainant in the year 2005, has taken an All Purpose Mortgage Loan of Rs.14,00,000/- from OP-1 by mortgaging the premises situated at No.18/3, Cart Stand Road, Jolly Mohalla, Bengaluru – 560053and accordingly, OP-1 Bank sanctioned the Loan on 04.02.2005 and the same stands fully cleared in the year 2012. However, when the above Loan was pending, in the year 2006, the OP-1 has sanctioned Cash Credit Loan against stock of Rs.6 Lakhs for improvement of business. Later on, in the year 2008, OP increased the Loan, by sanctioning Rs.1.50 Lakhs, thus, in total, it became Rs.7.50 Lakhs for the improvement of business/factory.

3. Further, it is the case of the Complainant that, OP-1 has increased the earlier Cash Credit Loan against stock and granted further loan of Rs.9 lakhs in the year 2012, as per letter arrangement dated 29.11.2012. The complainant used to submit every month, copies of the statement of production/goods/materials stored in the factory, Accounts Books, other office books, etc., along with records pertaining to retention of furniture, fixtures and Computers kept in the factory. The OP-1 Bank had organized for taking an Insurance Policy on the Building & stocks in the year 2012 with National Insurance Company Ltd., / OP3vide Policy No.603901/11/11/3100004343 valid from 31.01.2012 to 20.01.2013 and debited Rs.1,721/- paid as Annual Premium, from the account of the Complainant but not intimated about the details of Insurance to the Complainant, as alleged by the Complainant.

4. When the matter stood thus, on 12.08.2013, it is alleged that a fire accident occurred in the factory, due to which the Complainant suffered a heavy loss of more than Rs.52 Lakhs, apart from mental shock, agony, depression which affected him and his family members, especially his aged parents’ health as well, created lot of problems in the family. The details of Machineries & Stocks which were burnt completely has been mentioned in the mahazar (Panchanama), but, there is no mention about the details of stock of Text Books, Note Books, Furniture’s & Fixtures, due to inadvertence Further, alleged t