ORIENTAL INSURANCE CO LTD Vs. I A E C BOILERS LTD

JUDGEMENT

(1.) These two appeals arise out of one order passed by the District Forum, Madras-North in O. P. No.299/ 1995. Therefore both these appeals can be disposed of in a common order here.

(2.) The complainant firm is a manufacturer of boilers. They wanted to transit boilers from Ranipet to Madras Port and for that they engaged the services of the 2nd opposite party South India Corporation (Agencies) Ltd. The complainant had got the goods to be transferred insured with the 1st opposite party M/s. Oriental Insurance Company Limited for Rs.1,15,87,180/-. The goods viz. , boilers and accessories were despatched in a truck from Ranipet on 30.3.1994 by the 2nd opposite party. On the way, it reached Madras Container Terminal at Ennore on 1.4.1994 where since there was breakdown of handling facility at Madras Port the goods were kept in the Terminal till 2.5.1994. Then, while on 2.5.1994 the boilers were being transferred from the Terminal Station to the Port, the containers fell down from the trailer on the road and on account of this, the boilers got heavily damaged. According to the complainant, the Surveyor of the Insurance Company has given a report about the value of the damage fixing at Rs.1,06,600/-. Besides, for repairs they had spent a sum of Rs.63,629/-. Thus the complainant had incurred a loss of Rs.1,70,229/-. The loss has occurred due to the negligence on the part of the 2nd opposite party. When a claim was made, the 1st opposite party Insurance Company repudiated it. This repudiation is totally unjustifiable. The 2nd opposite party has also not paid the said amount. Alleging deficiency in service on the part of both the opposite parties the complaint has been filed.

(3.) The 1st opposite party contended that as per the terms of the policy they were not liable to pay any amount to the complainant. Therefore, the repudiation was proper and thus there was no deficiency in service on their part.