Telangana consumer panel directs bank to pay Rs 7 lakh relief

HYDERABAD:  The Telangana State Consumer Disputes Redressal Commission has granted relief to a printing press owner who incurred a loss due to a fire in the business premises. The commission directed the main branch of Canara Bank at Khammam to pay Rs 7 lakhs in eight weeks towards the loss sustained by the complainant/owner and also to pay costs of Rs 10,000, as the bank failed to renew the insurance policy of the firm. 

The commission comprising president MSK Jaiswal and member K Ramesh was passing this order recently in the complaint given by YN Press located at Khammam town, represented by its proprietor YB Sekharam, seeking directions to the concerned bank and insurance company to pay the losses sustained by the firm to the tune of `42 lakh and to pay damages for mental agony.​

As for the case details, the said bank after due satisfaction of the turn over made by the firm sanctioned the outstanding cash credit facility to it with a limit of Rs 10 lakh and later the limit was raised to Rs 20 lakh. 

From the year 2010, the bank has been insuring the stock in trade with United India Insurance Company for the worth of loan limit by deducting the premium from the account of the firm. 

When the fire accident took place due to an electric short circuit in March 2015, stocks worth more than Rs 50 lakh was gutted/damaged. After a case was registered by the police, the firm approached the bank requesting to process the claim with insurance company for the insured stock.

In reply, the bank said that the policy was in lapsed condition by July 2014 as there was no specific request from the firm for renewal, and denying its liability. 

Besides, the bank contended that the firm’s activity of printing press does not fall within the ambit of Consumer Protection Act since it was purely commercial activity. When an evasive reply was given by the bank, the firm then approached the commission for relief.