R.K. Bag, J. - (1.) The plaintiff is a registered partnership firm carrying on business of keeping agricultural products in the cold storage for fixed period of time. The cold storage was constructed in the year 1976 with capacity of storage of 18,500 quintals of potatoes. In the year 1985 the cold storage was extended for augmenting capacity of storage of 42,000 quintals of potatoes by taking loan of Rs.14.94 lakh from the United Bank of India, Nutanganj Branch, Burdwan. The extended portion of the cold storage became functional from the year 1986. The cold storage was insured with The New India Assurance Company Ltd. for a sum of Rs.13,05,000/- for any loss or damage of the building, plant, machinery, insulation, racks and electrical fittings of the said cold storage by fire, malicious damage, explosion etc. for the period from March 23, 1985 to March 22, 1986. A new insurance policy for the extended portion of the cold storage being Policy No.1327800411 was obtained from The New India Assurance Company Ltd. (hereinafter referred to as the defendant insurance company) on payment of premium of Rs.6,743/- for coverage of risk to the extent of Rs.12,50,000/- for the building of extended portion of the cold storage, Rs.3,50,000/- for its insulation materials, Rs.1,50,000/- for its racks and Rs.70,000/- for electrical fittings.
(2.) On March 19, 1986 there was a serious explosion inside the extended portion of the building of cold storage and thereby the entire building was crumbled down causing damage to the plant, machinery, racks, electrical equipments including potatoes stored therein. On March 20, 1986 the plaintiff intimated about the said explosion inside the extended portion of building of the cold storage to the Branch Manager of the defendant insurance company for making inspection to ascertain the damage suffered by the plaintiff. On April 18, 1986 the plaintiff filed an application to the defendant insurance company claiming a sum of Rs.12,50,000/- on account of damage of the building of the cold storage, Rs.2,85,000/- on account of damage of insulation materials, Rs.1,31,500/- on account of damage of racks and Rs.50,000/- on account of damage of electrical fittings of the said cold storage, which was duly accepted by the defendant insurance company. On May 25, 1987 the defendant insurance company repudiated the claim of the plaintiff on flimsy and frivolous ground. The defendant insurance company clearly admitted in the cover note that first class building materials were used for construction of extended portion of the cold storage. Ultimately, the defendant insurance company refused to grant the claim of plaintiff on the ground that the damage was caused to the building of the cold storage for faulty design and the loss suffered by the plaintiff does not fall within the scope and ambit of the policy granted to the plaintiff by the defendant insurance company. Accordingly, the plaintiff instituted the suit against the defendant insurance company and its Regional Manager and Divisional Manager for realisation of Rs.17,16,500/- along with interest accrued thereon at the rate of 18% per annum from the date of filing of the claim by the plaintiff on April 18, 1986 till the date of realisation of the entire amount from the defendant insurance company. The suit was initially instituted in the Court of Learned Assistant District Judge, Burdwan, but the same was filed before the High Court at Calcutta after return of the plaint by Learned Assistant District Judge.
(3.) The defendant insurance company and its Divisional Manager of Durgapur Divisional Office filed two separate written statements by which the defendant insurance company disputed and denied the allegations made in the plaint. The specific case made out by the defendant insurance company is that the extended portion of the cold storage was constructed by the plaintiff with inferior and substandard materials without having any structural stability for construction of the extended portion of the cold storage. It is alleged that the plaintiff did not obtain permission from the Licensing Officer for storage of potatoes in the extended portion of the cold storage with effect from March, 1986. The further case made out by the defendant insurance company is that there was no explosion inside the extended portion of the cold storage for which the plaintiff is alleged to have suffered damage. On May 25, 1987 the defendant insurance company repudiated the claim of the plaintiff after making proper scrutiny of the said claim. The defendant insurance company has specifically denied the claim of the plaintiff to the extent of Rs.17,16,500/- on account of damage suffered by the plaintiff.;