- (1.) NEW India Assurance Company limited has filed this writ petition questioning order dated 8-7-2006 of the divisional Consumer Forum, Jammu and appellate order dated 9-3-2007 of the jammu and Kashmir State Consumer Disputes redressal Commission, Jammu, (State commission for short), saying that both the authorities constituted under the Jammu and Kashmir Consumer Protection Act, 1987 had erred in allowing respondent Ghulam nabi Khan's Claim Petition No. 856. claiming compensation for the loss alleged to have been caused to his buildings situated at ghutha Bhagwah, Doda which was gutted in fire during the currency of Policy No. 1135250300892.
(2.) THE insurer-writ petitioner had disputed its liability to pay compensation to the respondent on the ground that the building which had been stated to have been gutted in fire, had not in fact been insured with it, and it was rather the cattle shed of the respondent, that had suffered loss because of the fire, which however was not covered by the Insurance Policy.
(3.) THE compliant/claim of the respondent was adjudicated upon by the Divisional consumer Forum, which, on the basis of the evidence produced before it, came to the conclusion that the double storeyed building of the respondent had been used both for residential purposes as also for providing shelter to his cattle which had suffered loss because of the fire, and the Insurance company could not thus deny its liability to compensate the respondent. Holding the repudiation of respondent's claim by the insurer as arbitrary and illegal, the Divisional consumer Forum, directed the writ petitioner to pay an amount of Rupees 1,70,000/-, as compensation to the respondent, as assessed by Mr. Mahesh Badyal surveyor and loss assessor along with interest @ 6% per annum w. e. f. September, 1995 i. e. six months after the date of loss, and litigation expenses amounting to Rs. 3000/ -.;