
The Suburban Mumbai’s District Consumer Dispute Redressal Forum recently ruled in favor of the complainant, Subramanian Ramakantan, and penalized Indian Bank for negligence in failing to update the address details of his firm. This negligence resulted in a significant financial loss of Rs.15 lakh for Ramakantan. The forum has ordered the bank to pay the full amount, along with 9% interest since 2000. In addition, the bank has been directed to pay Rs.50,000 for mental agony and Rs.15,000 as litigation charges.
Background of the Case
Subramanian Ramakantan, a resident of Chembur, owns a firm called Vivitaar Backups and is a customer of Indian Bank. He had applied for a term loan of Rs.15 lakh and a cash credit of Rs.15 lakh for his business. The bank granted the loan, using the products and machinery owned by Ramakantan as collateral. To safeguard the firm’s machinery and products, the bank had purchased an insurance policy against fire and special perils, which was active from January 2020 to January 2021.
Failure to Update Address Details and Subsequent Loss
At the time of applying for the loan, Ramakantan’s firm was based in Sanpada. However, it later shifted to Nerul, prompting Ramakantan to inform the bank in writing and request an update of the address details. Unfortunately, the bank failed to make the necessary changes.
In August 2020, a fire broke out in Ramakantan’s firm, causing damage worth approximately Rs.15 lakh. He immediately reported the incident to the police and informed the bank. The bank promptly sent a surveyor, who conducted an assessment and submitted a report. However, due to the bank’s negligence in updating the address, the insurance claim was rejected by the insurance firm.
Bank’s Acknowledgement of Mistake
Meanwhile, the bank acknowledged its mistake in failing to update the address and wrote to the insurance firm to accept responsibility. Despite this acknowledgment, the insurance claim remained rejected, leaving Ramakantan in a difficult situation.
Seeking Compensation through Consumer Forum
Feeling aggrieved by the bank’s negligence and the resulting financial loss, Ramakantan approached the Suburban Mumbai’s District Consumer Dispute Redressal Forum. The forum requested the bank to provide a response to the complaint, but the bank did not comply. As a result, the forum proceeded with the case ex-parte, meaning without the bank’s participation, and held the bank solely responsible for its negligent behavior.
Conclusion
In conclusion, the Suburban Mumbai’s District Consumer Dispute Redressal Forum has penalized Indian Bank for its negligence in failing to update the address details of Subramanian Ramakantan’s firm. The bank has been ordered to compensate Ramakantan with the full amount of Rs.15 lakh, along with 9% interest since 2000. Additionally, the bank must pay Rs.50,000 for mental agony and Rs.15,000 as litigation charges. This ruling highlights the importance of ensuring accurate and up-to-date information to avoid potential financial losses and legal consequences.