- (1.) IN this appeal we are called upon to deal with a fire insurance claim made by the respondent who put up a complaint seeking direction for payment of a sum of Rs. 81. 33 lakhs. The aforesaid claim includes a claim of a sum of Rs. 79,08,314/- for the stocks which were destroyed by the fire and which were duly covered by the Insurance Policy issued by the appellant after payment of full premium.
(2.) THE respondent herein is a small scale industry engaged in the manufacturing and marketing of plywood and allied products. It had taken two insurance policies as stated hereinbefore from the appellant after paying full premium. During the period of the aforesaid two policies, on 25. 11. 1997, a fire broke out in the factory which engulfed the godowns of the said factory and completely destroyed all the stocks which were lying within the said godown resulting in heavy loss to the respondent. The management of the company immediately sent information to the fire brigade, the Police and also the insurer. The complainant-respondent thereafter submitted a claim as stated hereinbefore for a sum of Rs. 81. 33 lakhs including a sum of Rs. 79,08,314/- for the stocks destroyed by fire. It is needless to point out that we are here concerned only with regard to the claim and assessment made with regard to the loss of the stock destroyed. After receipt of the aforesaid claim of the respondent company, the insurance company appointed and engaged a surveyor M/s. Subhash Kapoor and Associates for making assessment of the loss. The Surveyor made an enquiry, examined the records and thereafter submitted an interim survey report dated 12. 12. 1997. In the said interim report, the Surveyor accepted that it was an accidental fire. It was stated in the said interim report that loss in respect of the stocks would be around Rs. 75 lakhs considering the unaffected stock, recoverable salvage lying in the premises of the insured. The Surveyor also reported that the Company did not maintain reasonable record of the stock and therefore the said Surveyor is unable to certify the correctness of the valuation of closing stock because of the discrepancies between the physical stock and the book records, as details of stock, consumption etc. of stock was not provided, in the absence of which they are unable to certify the correctness of the stock and its valuation. Subsequently on 6. 3. 1998, the Surveyor submitted a final survey and assessment report in which the Surveyor assessed the loss caused to the stock of Rs. 62,38,655. 76 from which salvage value and thereafter 50% of the amount was deducted for various alleged deficiencies as stated in the report and assessed the loss of Rs. 28,64,560. 38.
(3.) NOT being satisfied with the said report, the insurance company considered it necessary to appoint an Investigator to investigate and to make re-assessment of the claim amount based on verification of books and records. Accordingly M/s. S. Soni and Co. , Surveyors were appointed/engaged as the investigators who caused an enquiry during the course of which records available with the claimant Company were examined. Besides, the investigator also made enquiries with the banks of the respondent Company where the stocks of the company were hypothecated and also verified the records from various suppliers and transporters and checked the original G. Rs and production records and the stock records placed before it and thereafter submitted its report. In the said report, it was held that there was actually an accidental fire in the factory premises of the respondent as claimed and stated by the respondent. It also transpires from the report submitted that Stock Register, ledger Accounts and production statements were submitted before the investigator by the respondent Company in terms of their request and therefore all relevant records appeared to have been submitted by the respondent company to the said investigator. The said investigator verified all those records and on examination thereof and on the basis of other records examined by them which were colleted by them not only from the respondent Company but also from other quarters, made an assessment recording therein the loss of stock as on 25. 11. 1997 as rs. 61,50,990. 15.;