DEMM AUTO ENGINEERING WORKS Vs. NEW INDIA ASSURANCE CO. LTD.

JUDGEMENT

(1.) THIS complaint has been filed under Section 17 of C.P. Act, 1986 (hereinafter called the Act) for directions to OP to pay a sum of Rs. 34,52,596 towards re -imbursement of the loss, Rs. 56,536 as fees paid to Surveyor and Rs. 2 lac towards compensation for harassment, mental pain and agony and Rs. 1 lac towards costs of litigation. Besides this, interest @ 15% per annum has also been claimed from the date of filing of petition till realisation on the amount of re -imbursement. Relevant facts of the complaint are that complainant M/s. DEMM Auto Engineering Works is a partnership concern engaged in selling auto -parts for heavy commercial vehicles. For business purpose complainant operates a shop at Kashmere Gate, bearing Shop No. 50, First Floor, Chadha Building, Guru Nanak Auto Market, Kashmere Gate, Delhi - 110006. Auto parts stock for sale are stored/kept in the shop. For purposes of financial security complainant obtained a 'Standard Fire and Special Perils Insurance Policy' covering stock of all kinds of auto parts bearing No. 354101/11/06/11/00000472 for the period of one year from 12.10.2006 to 11.10.2007 for Rs. 70,00,000. The auto parts stock was under hypothecation of Punjab National Bank, Sukhrali, Gurgaon.

(2.) UNFORTUNATELY on 13.5.2007 around 9.00 p.m. a massive fire broke out in Chhadha Building, engulfing entire Guru Nanak Market which included the insured premises/shop of the complainant as well. Local Fire Brigade was pressed in service which took several hours to bring the fire under control. The local police was also informed and matter was reported in local media also. Due to this devastating fire entire packed material lying at the insured premises for despatch to customers was destroyed due to heat and water. During the course of extinguishing the fire, packed material was thrown down from the first floor of the building by fire fighting people. Complainant informed OP regarding the incident of fire over phone and thereafter lodged insurance claim vide its letter reference No. DEM/6/2007 -2008 dated 14.5.2007. The Punjab National Bank also informed the OP through letter dated 14.5.2007. The entire material thrown from the first floor was scattered on the road and got mixed up with the stock of other shop owners. The complainant employed his men to locate its own material and put it in gunny bags. With a view of safety and security the affected auto parts stock was transported to Gurgaon as there was no space available to keep the material for safe custody. Shifting of the material was also necessary to save it from theft and other kinds of perils. Intimation of shifting of the damaged material was also given over telephone to the OP on the same date.

(3.) SINCE the loss of the complainant was lying un -assessed the complainant employed M/s. Kejriwal & Co., a Government Approved Surveyor and loss -assessors for assessment of the loss suffered by the company. M/s. Kejriwal & Co. visited the insured shop at Kashmere Gate. Premises at Gurgaon where damaged material was kept took fresh photographs of the site as well as damaged material lying at Gurgaon. He was also provided with information and documents required by him. He advised the complainant to put the material to scientific test and find out its present position and the cause of rejection. The same were conducted in the presence of the Surveyor and the reports thereafter were collected by them. It was found that the items affected could not be used by any purchaser as its retention power has been diminished due to burning and heat, etc. M/s. Kejriwal & Co. assessed the loss to the tune of Rs. 34,52,596 against the claim of Rs. 52,94,510.