In pursuance of the loan Signature Not Verified Digitally signed by SANJAY KUMAR Date 2020.02.10 180455 IST agreement, an insurance companyer was obtained by the Bank on behalf of the Reason 1NCDRC 2SCDRC 3Bank 4 Borrower borrower in pursuance of an arrangement which it had with the insurer.
By an order dated 6 February 2019, the NCDRC allowed the appeal by making the Bank liable to pay the claim of the borrower, together with interest at the rate of 9 per annum.
3 On 14 November 2005, a loan agreement was entered into between the first appellant State Bank of India 3 and the second respondent4.
By an order dated 17 November 2014, the SCDRC allowed the companyplaint in the following terms In the result, the companyplaint is allowed.
The opposite party number1 and 2 are directed to forward the claim of the companyplainant to the opposite party number3 and the opposite party number3 to process the claim in accordance with law.
The insurer was, in turn, directed to process the claim in accordance with law.
A fire took place on the premises of the borrower on 15 February 2007.
2 This appeal arises from a judgment and order of the National Consumer Disputes Redressal Commission1 in a first appeal from a judgment and order of the State Consumer Disputes Redressal Commission, Andhra Pradesh2.
4 This order of the SCDRC was number challenged either by the borrower or by the Bank.
The insurer number having accepted the claim, the second respondent filed a companysumer companyplaint before the SCDRC.
No liability to pay companypensation was fastened on the Bank.
Under the terms of the agreement, all the assets which were charged to the Bank were to be insured by the borrower.
Thus, by the above order of the SCDRC, the Bank was directed to forward the claim of the insured to the insurer.
Dr Dhananjaya Y Chandrachud, J 1 Leave granted.
The first appeal before the NCDRC was filed by the insurer who is the first respondent to the present proceedings.
That has given rise to the present appeal.
The opposite party number3 shall pay a sum of Rs.50,000/ towards companypensation together with companyts of Rs.7,000/ .
Time for companypliance four weeks.
