- (1.) Heard Mr. P.K. Seth, learned counsel for the appellant - Insurance Company and Mr. K. Radhakrishnan, learned senior counsel for the respondent.
(2.) By the judgment and order under appeal dated 18th August, 2010 of the National Consumer Disputes Redressal Commission (hereinafter referred to as "the Commission"), the Original Petition No.200 of 2000 preferred by the respondent has been allowed in part. The appellant - Insurance Company has been directed to pay the amount which was reflected as the actual loss in the survey report calculated at RS. 52,10,323/- along with interest thereon at the rate of 9% per annum from 11th April, 1999. The Commission has also awarded costs of RS. 15,000/- to the respondent.
(3.) The main issue canvassed on behalf of the appellant is one of law relating to interpretation of Clause (1)(v) of the Riot, Strike, Terrorist and Malicious Damage Clause (RSMD Clause), hence, the facts need not detain us unnecessarily. It is sufficient to note that the respondent had taken an insurance policy for RS. 4.50 crores to insure its building, machinery and appliances, stocks in process and stock for the period from 24th April, 1997 to 23rd April, 1998. On 29th March, 1998, which was a Sunday and a holiday for the office and plant of the respondent, an information was received by the respondent disclosing mischief by opening of the four valves of the four main oil storage tanks as well as opening of the main valve connecting all the four tanks/ valves. That led to leakage of large amount of oil out of 400 MTs oil stored in the tanks. The leakage could be detected accidentally by someone noticing the flow of oil in the drain and then into a nallah outside the factory premises because the Hose Pipe through which the oil had to come out was put in a man-hole made for drainage of water from the factory to the outside.;