Gopal Krishan Vyas, J. - (1.) BY this writ petition, the petitioner insurance company seeks to challenge the order dt. 20.03.2004 passed by the Permanent Lok Adalat (Annex. -3) to the writ petition) whereby the learned Permanent Lok Adalat directed the petitioner insurance company to pay a sum of Rs. 5,17,800/ - with a further direction to pay interest at the rate of 12% per annum on the claim amount of Rs. 2,48,450/ - with effect from 21.02.2002 till realization.
(2.) ACCORDING to facts of the case, respondent No. 1 is involved in the business of old paper -raddi and bottles etc. and the said firm obtained shopkeepers' insurance policy for a sum of Rs. 7,00,000/ - from the petitioner insurance company. The policy was valid for the period commencing from 08.11.2001 to 07.11.2002. According to the petitioner, the said policy was issued in the name of respondent No. 1 with regard to stock -in -trade stored in shop having Class -A construction, said to be situated near New Sabji Mandi, Bhadwasiya Road, Jodhpur. It is also one of the facts that name of respondent No.2 was also added in the insurance policy being financer of respondent No.1. Respondent No. 1 submitted a claim before the petitioner company for loss of Rs. 7,06,565.50 ps because the firm suffered loss due to fire which occurred on account of electric short -circuit on 21.02.2002. According to the petitioner, soon after receiving the information regarding the incident of fire, the insurance company immediately appointed authorised surveyor Sanjay Bhandari to assess the loss suffered by the insured firm and Shri Bhandari immediately visited the site for the purpose of survey and submitted his survey report on 05.08.2002. It is submitted by the petitioner insurance company that during the survey, the surveyor found that respondent No. 1 suffered loss of Rs. 2,58,450/ - in respect of the old paper -raddi and further the firm has suffered loss of Rs. 2,79,350/ - on account of damage of old bottles; but, as per report of the surveyor, the stock of old bottles was lying in heaps in open place not belonging to respondent No. 1 and, so also, there was no boundary wall around the plot where the old bottles were lying in heaps in open place. It is further pointed out that the bottles were not kept in covered area of Class -A construction and the same were lying in open area not belonging to the insured firm. After receiving such report of the surveyor, the petitioner insurance company assessed the over -all circumstances and reached conclusion that the firm is entitled to get a sum of Rs. 2,48,450/ - after deducting Rs. 10,000/ - as per excess clause from Rs. 2,58,450/ - which was assessed by the surveyor on account of loss of old paper -raddi. The petitioner insurance company refused to give compensation in respect of loss caused to old used bottles since the same were lying in open area not belonging to the insured as the same was not covered under the policy. The petitioner insurance company offered respondents No. 1 and 2 a sum of Rs. 2,48,450/ - against full and final settlement of their claim; but, they did not accept the offer made by the petitioner company and preferred petition under Section 22 -B of the Legal Services Authorities (Amendment) Act, 2002 before the Permanent Lok Adalat, Jodhpur.
(3.) AFTER receiving the notice of the said petition, the petitioner company after again offering the sum of Rs. 2,48,450/ - to respondents No.1 and 2 against full and final settlement of the claim submitted its reply before the Permanent Lok Adalat. In its reply, it was submitted by the petitioner that respondent No. 1 is not entitled to get any compensation in respect of old bottles from the petitioner company in view of the terms of the insurance policy inasmuch as the stock of old bottles lying in heaps in open place not belonging to the firm was not covered under the policy. It was also submitted that since the respondent No. 1 refused to accept Rs. 2,48,450/ - towards full and final settlement of its claim there was no possibility of any mutual amicable settlement of the dispute.;