ORIENTAL INSURANCE CO LTD Vs. MAYUR RESTAURANT AND BAR

JUDGEMENT

(1.) First Appeal No. 320 of 1994 has been filed against the order dated 10.2.1994 of the Maharashtra State Consumer Disputes Redressal Commission in Complaint No. 602 of 1992. The opposite party is the appellant before us.

(2.) Facts of the case are as follows : The complainant who is a proprietor of M/s. Mayur Restaurant & Bar at Chandrapur had taken an insurance policy 'A' bearing No. 16221 /10/91 / 00421 from the Oriental Insurance Company for Rs. 18,65,000/- valid for 12 months from 3.8.1990 to 2.8.1991. The property insured pertained to the building - the Mayur Restaurant and the Bar located at the basement and included certain other items as well, as listed in the statement forming part of the policy. The complainant alleged that due to heavy rains in Chandrapur District, there was inundation and floods around the area of the premises where the Mayur Bar is situated causing extensive damage to the insured property. The complainant noticed the damage on 7th August, 1990 and informed the Branch Office of the opposite party-Insurance Company (appellant herein) on 10th August, 1990. The complainant stated that he could not immediately inform the opposite party as he was busy in salvage operations of the Bar. On 11.8.1990, the opposite party appointed Sri V.S. Daoo, a Surveyor from Nagpur to survey the damage and assess the loss suffered by the complainant. The Surveyor observed that even during his visits, it rained heavily on 21st night and the fury continued upto 24th, August and water entered into the premises of the basement which remained inundated between 21st and 28th August. According to the Surveyor's report, continuous presence of acidic and corrosive water from the Macchi Nala basically carrying refuse/ effluent of the city and residential outlets caused damage to the basement where the Bar is situated. The Surveyor assessed the loss payable to the insurer under the policy at Rs. 2,26,819.49 and communicated the same on 17.4.1991.

(3.) The opposite party, however, repudiated the complainant's claim on 2.8.1991. On this, the complainant represented to the Grievance Cell of the opposite party with copy to the Ministry of Finance. The opposite party confirmed their repudiation on 12.12.1991. Aggrieved by this, the complainant preferred his complaint before the Maharashtra State Commission alleging deficiency in the service of the opposite party and claiming an amount of Rs. 2,26,819.49 together with interest @ 18% per annum alongwith Rs. 35,000/- towards loss due to delay and Rs. 7,500/- as costs.