- (1.) Champdany Industries Limited was running a jute mill. They got their factory and stock insured through the Oriental Insurance Company Limited. There were altogether five insurance policies prevalent for the year 2006-2007. On or about April 22, 2006 a devastating fire broke out in the mill causing substantial loss, not only to the stock but also to the plant and machineries and the building. Champdany informed the Insurance Company. Initially Bhadra and Associates, surveyor, surveyed the damage caused by the fire. The survey report would appear at page 109-191 of the paper book. Oriental possibly wanted to have a second opinion on the issue. They engaged Apex Surveyors Private Limited who submitted their report dated May 10, 2007 appearing at pages 192- 202. Champdany raised a claim in respect of four out of five policies that were prevalent at the time of fire. Oriental subsequently came to know, earlier there had been similar incidents of fire at least, on more than one occasion. Champdany did not inform them about the past incident hence, Oriental could not impose appropriate loading charges that Insurance Company was entitled to impose considering the high risk that might be involved in the policy of insurance.
(2.) The records would reveal, from time to time Oriental condoned the latches on the part of Champdany for such suppression. Oriental however, issued supplementary bill of additional premium on such count in respect of all the policies. The present appeal would also involve a cross-objection involving a sum of Rs.2402801 that, according to Champdany, had been duly paid through the forwarding letter dated May 22, 2006 appearing at page 95 in response to the bill raised upon them appearing at page-93 thereof.
(3.) Oriental examined the claim and partly allowed the same to the extent of Rs.1,44,50,511. Pertinent to note, Bhadra assessed the loss at Rs.1,74,81,613. From the calculation that Oriental made, we would find, Oriental more or less accepted the survey report of Bhadra however, deducted the additional premium for Rs.24,02,801 that would make a substantial difference between the two figures. Champdany was not happy. They raised a dispute that the parties referred to arbitration. A former Judge of this Court acted as arbitrator. Champdany made a claim before the arbitrator to the extent of Rs.6,37,98,410.;