ORDER

1. Heard Mr. R. Ramachandran, Advocate, for the complainant and Mr. Arun Aggarwal, Advocate, for the opposite party.

 2. M/s. Chausana Pharmaceuticals Private Limited has filed above complaint, for directing Bank of Baroda to pay (i) Rs.1.15/- crores, for committing deficiency in service in not getting the insurance policy renewed; (ii) Rs.5000000/- as compensation for business loss and mental agony; (iii) Rs.100000/- as litigation costs; and (iv) any other relief, which is deemed fit and proper in the facts of the case.

3. The facts as stated in the complaint and emerged from the documents attached with it, are as follows:-

(a) M/s. Chausana Pharmaceuticals Private Limited was a company, registered under the Companies Act, 1956 on 07.01.2008. The complainant established a factory for manufacture of veterinary medicines and animal feed supplement at village Jijola, post office Chausana district Muzaffamagar, which was registered as a ‘small scale industry’ with District Industries Office. The complainant applied for fresh credit facilities of Rs.109.80 lacs as ‘Term Loan’ and Rs.50/- lacs as 'Cash Credit Limit’, to Bank of Baroda, which was sanctioned and Bank of Baroda through letter dated 03.02.2010 asked the complainant to complete the formalities for grant of loan. As per agreement, building of the factory, plant and machinery and stock were hypothecated with Bank of Baroda. The complainant completed the formalities and above facilities was granted on 15.02.2010. Term loan was repayable in 28 quarterly instalments of Rs.3.82 lacs from June, 2010.

(b) It is alleged that Bank of Baroda obtained “Traditional Business Insurance Policy No. 461903/46/11/7500000218, for the period of 09.09.2011 to 08.09.2012, for total sum of Rs.65/- lacs on “Stock of Medicine Finished/Unfinished Raw Material and Packing Material” and “Standard Fire & Special Perils Policy No.461903/11/11/3100000443, for total sum of Rs.2/- crores (Rs.60/- lacs for the Buildings, Rs.75/- lacs for Plant and Machinery and Rs.65/- lacs for stock), for the period of 09.09.2011 to 08.09.2012, from National Insurance Company Limited of the factory of the complainant and the Bank kept original policies with it.

(c) On 19.09.2011, a burglary (dacoity) took place in the factory premises and the office of the complainant, in which, all the assets, plant machinery and stock of medicines finished/unfinished raw material and packing material along with all books of account, papers, registers, documents, cheque books, computers, hard discs and other records maintained in the office were looted. The complainant lodged a criminal complaint (registered as Crime no.496A under Section 406, 506 IPC) at Police Station Jhinjhana on 23.11.2011 at 17:10 hours. The complainant intimated the incident to branch office and the offices at Dehradun and Bareilly of the opposite party through registered letter 22.10.2011 with request to set up insurance claim as the policies were with the Bank. The complainant also gave reminder to the Bank on 10.11.2011.

(d) After intimation of the incident to the Bank, the complainant was sure that the opposite party would have taken appropriate step for getting the claims settled with the insurance company and adjusted towards the loan amount. Later on, the complainant learnt that the opposite party miserably failed to lodge the claim in time with the insurance company. Instead of lodging the insurance claim, the Branch Manager initiated a proceeding under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFESI Act) against the complainant. As the complainant did not hear anything in regard to the insurance claim and nor the opposite party was forthcoming in providing intimation in spite of repeated requests, the complainant was constrained to file an RTI application dated 21.04.2012 with the opposite party seeking information about the insurance claim and the steps taken in this respect. The opposite part