NEW INDIA ASSURANCE CO. LTD Vs. LASA FOOTWEAR

JUDGEMENT

(1.) APPELLANT Insurance Company which was Opposite Party No.1 before the State Commission has filed this Appeal against the judgment and order dated 07.12.06 passed by the State Consumer Disputes Redressal Commission, Delhi (in short, 'the State Commission ') in Complaint Case No. C -282/1997 wherein the State Commission allowing the complaint filed by the Respondent has directed the Appellant to pay a sum of Rs.5,00,000.00 to the Respondent after deducting the sum of Rs.2,78,175.00 already paid along with Rs.10,000.00 towards costs.

(2.) COMPLAINANT /Respondent was running a factory of manufacturing of shoes at 10/20 Katra Wazir Khan, Hatras Road, Agra. It had taken two insurance policies in respect of the stock of raw materials, finished and semi -finished shoes, shoes under products, leather sheets, rubber sheets, soles solutions, shoe laces etc. covering the risk of fire and allied perils to the tune of Rs.15,00,000.00. On 29.11.95, Respondent shifted its manufacturing activities from 10/20, Katra Wazir Khan, Hatras Road, Agra to 10/9 -B, Katra Wazir Khan, Agra and thereafter the said premises was being used only for storage purposes. The amended policies were issued for both the premises in the sum of Rs.5,00,000.00 each. During the validity of the said policies, a fire broke out on the intervening night of 8/9 December, 1995 at 10/20 Katra Khan, Agra as result of which the entire stocks kept therein got destroyed. Appellant, on being intimated about the fire, appointed joint Surveyors, Mr. S.K. Mittal and Mr. Rajesh Malhotra to assess the loss suffered by the Insured. The said Surveyors submitted their report on 12.09.96 assessing the loss at Rs.1,10,460.00. Vide letter dated 26.11.96, Appellant offered a sum of Rs.1,10,460.00 towards full and final settlement against the claim of Rs.10,18,897.27 on the basis of detailed report of joint Surveyors which was not accepted by the Respondent. Thereafter, Appellant appointed another Surveyor, M/s. Digambar Lal Puri and Sons who submitted their reports on 1.09.97 assessing the loss at Rs.2,78,175.00. A third Surveyor was appointed in the year 1999 who submitted his report assessing net loss at Rs.9,36,302.00. Appellant offered a sum of Rs.2,78,175.00 towards the settlement of the claim which was accepted by the Respondent under protest. Complainant, being aggrieved, filed the complaint for the balance amount before the State Commission alleging negligence on the part of the Insurance Company.

(3.) STATE Commission, after referring to Section 11 (2) (b) of the Consumer Protection Act, 1986 which reads as under : -