VISHAL COATERS LIMITED Vs. NEW INDIA ASSURANCE CO LTD
LAWS(PUNCDRC)-2010-12-10
PUNJAB STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Decided on December 22,2010

Vishal Coaters Limited Appellant
VERSUS
NEW INDIA ASSURANCE CO LTD Respondents

JUDGEMENT

- (1.) THE version of the appellants was that they were limited Company incorporated under the Companies Act, 1956. They were engaged in the manufacture of paper for printing and writing etc. purposes from waste paper, bamboo pulp and other such material used in the manufacture of paper. Sanjeev Goyal was its Director authorized to file the complaint.
(2.) IT was further pleaded that the appellants had taken the insurance policy for a total amount of Rs.1,02,00,000/ - for the period from 27.5.2001 to 26.5.2002. Out of this amount, the insurance policy for the raw material, waste paper etc. was Rs.60,00,000/ -, for finished goods was for Rs.30,00,000/ - and for other items it was for Rs.12,00,000/ -. First Appeal No.835 of 2005.
(3.) IT was further pleaded that on 9.11.2001 at about 5.00 P.M. the fire had broken out in the raw material yard of the appellants. It was controlled manually with the help of the fire brigade called from Patiala. Information was given to the respondents on 9.11.2001 itself. The Dakala Police was also informed on 13.11.2001 in writing. However there was no reaction from the respondents. The appellants had sent another letter on 19.11.2001 and informed the respondents that the fire was still going on inside the waste paper heaps. It was posing danger to other goods lying all over the yard. It was impossible for the appellants to dispose of the burnt material. Therefore the respondents were requested to enhance the insurance policy by Rs.30,00,000/ -. The respondents were also informed that the loss of waste paper was 200 tonnes and they were requested to depute their surveyor to assess the lass. The surveyor had come, assessment was made but it was not disclosed to the appellants nor it was told to the appellants by the respondents. It was further pleaded that these were Diwali days on 9.11.2001. Therefore the fire brigade people did not stay in the factory for a long time. They returned. Next day morning when the appellants were segregating the safe material from the burnt material with 4 pipelines of water to avoid further loss, it was found that the fire was still under the heap of waste paper and the flames started coming out. It was the nature of spontaneous combustion. Such a fire was required to be extinguished in steps. If heaps were opened immediately it could cause more loss and sometimes the situation becomes uncontrollable. The appellants had made full efforts. There was no laxity on their part.;


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