ADDITIONAL BENCH BEFORE THE TELANGANA STATE CONSUMER DISPUTES REDRESSAL COMMISSION: HYDERABAD.

C.C.No.57 OF 2020 Between:

1. Mr. S. Nagaraju, s/o. Sri S. Narayana, Aged about: 54 years, Indian, Occ: Business, R/o. H.No.7-93/4, road No.2, Shankarnagar, Peerzadiguda, Medipalli Mandal, Medchal-Malkajgiri District – 500092.

2. Smt. S. Anuradha, W/o. S. Nagaraju, Aged about: 52 years, Indian, Occ: Business, R/o. H.No.7-93/4, road No.2, Shankarnagar, Peerzadiguda, Medipalli Mandal, Medchal-Malkajgiri District – 500092.

… Complainants And

1. M/s. United India Insurance Co. Ltd., RTC X Roads, D. No.1-1-79/D/3, 2^nd Floor, Opp: Sri Mayuri Theater, RTC X Roads, Hyderabad – 500020, Rep. by its Branch Manager.

2. M/s. Bank of Baroda, (Formerly M/s. Vijaya Bank, Merged with Bank of Baroda), somajiguda Branch, #6/3/652, Opp: CE Office, Somajiguda, Hyderabad – 500082, Rep. by its Branch Manager.

…Opposite parties Counsel for the Complainants : M/s. V.Gouri Sankara Rao Counsel for the Opposite Party No.1 : Mr. K. V. Rao Counsel for the Opposite Party No.2 : Remained Ex-parte QUORUM: HON’BLE SRI K.RANGA RAO - PRESIDING OFFICER-

MEMBER - (JUDICIAL).

&

HON’BLE SMT.R.S.RAJESHREE, MEMBER (NON JUDICIAL).

THURSDAY, THE ELEVENTH DAY OF DECEMBER, TWO THOUSAND TWENTY FIVE ORDER: (PER HON’BLE SMT. R.S. RAJESHREE, MEMBER, N-JUDICIAL)

1. This is a complaint filed by the Complainants U/s. 17(1)(a)(i) of Consumer Protection Act,1986 on 16.06.2020 against the Opposite Parties to direct them as follows:-

(i) To pay Rs.76,00,000/- along with interest @12% p.a., from

13.06.2018 till the date of realization. (ii) To pay compensation of Rs.5,00,000/-. (iii) To pay costs of Rs.50,000/-, and pass such other order or orders which the Hon’ble Commission deems fit and proper under the circumstances of the cases.

2. Brief facts of the case: The case of the Complainants is that they are husband and wife and that they have purchased open plots bearing No.63, 64, 43 & 44 admeasuring 1068 Sq.yards situated at Chengicherla Village, vide sale deed dated 12.10.2001. That after obtaining proper approval from Gram Panchayat, Chengicherla they have constructed a RCC shed, later, 1^st & 2^nd floor was constructed on the existing ground floor. The Gram Panchayat had allotted H.No.1-21/1, to the RCC shed though the same is not a residential house. That initially the complainants had let out the shed on lease to a pharmaceutical company named “Raj Biotech”. The said company had obtained all the approvals from the concerned authorities prior to operation. That after the closure of Raj Biotech the first floor building was let out to Mr. D. Kumara Swamy who opened a solar panel plant under the name and style SOL Green Energies Pvt. Ltd,. They obtained a loan of Rs.1 crore from Opposite Party No.2 bank (Formerly known as Vijaya Bank). ON 10.10.2016 the ground floor building was let out to Mr. M. Ashok, who established a pharmaceutical manufacture company under the name and style “M/s. Legal Laboratories” after obtaining the proper permissions from the concerned authorities. This company had obtained a Standard Fire and Special Peril Policy from M/s. New India Assurance Company Ltd., for a period of one year from 24.07.2017 to 23.07.2018 for a sum insured amount of Rs.1,10,00,000/-.

On 26.06.2017 the Complainants approached Opposite Party No.2 (Vijaya Bank) for sanctioning an overdraft loan. The Opposite Party No.2 sanctioned loan of Rs.84,00,000/- on 30.6.2017 subject to mortgaging the entire property both ground and first floor bearing No.1-21/1 situated at Chengicherla, worth Rs.1,54,30,000/-. That before sanctioning the loan the officials of the Opposite Party No.2 have inspected the premises wherein both M/s. Regal laboratories and M/s. SOL Green Energies Pvt. Ltd., were in operation, satisfied with the title deeds, rental deeds, socurce of income and the property, the Opposite Parties No.2 had sanctioned the loan. That the Opposite Party No.2, bank had obtained a Standard Fire and Special Peril Pol