CORE ORGANICS LTD Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) The complainant is a joint sector Company alongwith Punjab State Industrial Development Corporation. Its factory is situate at Focal Point, Dera Bassi, Patiala. It manufactures chemicals. On 28.9.1995, a fire broke out in the aforesaid factory resulting in tremendous loss. The National Insurance Company with whom the complainant concern was insured by means of two policies - one commencing on 30.6.1995 and the second on 8.8.1995. The respondent was informed telephonically immediately and thereafter by means of a letter dated 29.9.1995 about the fire. The complainant Company was insured for a sum of Rs.3,52,55,000/-. The respondent Insurance Company deputed a team of Surveyors and the survey was completed by end of November, 1995. The respondent-Insurance Companies made a payment of Rs.1.50 crore on 4.3.1996 after a period of five months from the date of occurrence. The complainant had been requesting the respondents that they were able to reconstruct the plant and machinery upto 40% and more funds were required. It has further been alleged that the settlement of the claim has been delayed without any fault on the part of the complainant. The two insurance policies detailed in para 2 of the complaint were purchased from Chandigarh office of the respondents. The claim put forward here in para 11 of the complaint is briefly reproduced as under : " (1) 18% interest on delayed payment of the claim as Rs.1,50,00,000/- (Rs. one crore fifty lacs) paid after 5 months of the accident; (2) 18% interest on delayed payment of claim of Rs.86,47,737/- paid after 1 year of accident; (3) loss suffered by the complainant Company by paying interest to Financial Institutions and Banks due to delay in settling the claim; (4) wrong deduction of premium of Rs.86,617/- while settling the claim; (5) wrong deduction of Rs.30,315/- as electronic discount; (6) loss of Rs.4,70,683/- due to non- settlement of claim on reinstatement basis as provided by the insurance policy; (7) any other amount found due in the facts and circumstances of the case. "

(2.) In a reply filed on behalf of the respondents, it has been averred that the claim of the complainant was expeditiously processed; a sum of Rs.1.50 crores was paid on 4.3.1996 within six months of the intimation under the policy. Besides this a sum of Rs.85,61,120/- was paid on 8.10.1996 and the present complaint is an abuse of the process of law. The complainant has purposely concealed the material facts. The matter in dispute and issues involved were complicated and the record is voluminous; the dispute cannot be tried in summary proceedings here. The complainant vide its letter dated 23.7.1996 had agreed to accept a sum of Rs.2,36,47,737/-. A consent letter in this regard was given by the complainant voluntarily. The complainant is not competent to retract from its own documents. This Commission had no jurisdiction to try the present complaint as jurisdictional value exceeded Rs.20.00 lacs not withstanding that the relief claimed is restricted to Rs.20.00 lacs. The fire Policy No.6000/11/13/95/166 was in lieu of cover note which was got issued by the Punjab and Sind Bank, Chandigarh and the complainant is not a party to the policy. The second Policy No.420/01/11/95/33/73 was issued to the IDBI and Punjab and Sind Bank. In view of the details contained under the policy, the complainant could not seek any relief.

(3.) On merits, it has been averred that as soon as the intimation regarding loss was received, M/s. S. P. Goel and Company, Insurance Surveyors and Loss Assessors and M/s. M. P. Bakshi Surveyors Private Limited, were deputed. A joint survey report was received. As a consequence of the survey report, a sum of Rs.1.50 crore was released against the abovesaid claim. It was ultimately settled at a total sum of Rs.2,36,477.37 and intimation in this regard was conveyed on 7.10.1996. The voucher dated 7.10.1996 was sent to the complainant and the sum of Rs.86,47,037/- was in full and final settlement of the claim for loss and damage as a consequence of fire in question. It was received duly signed by the IDBI and a copy thereof is Annexure D-18. A copy of the letter received from the complainant is Annexure D-19. A cheque for Rs.85,61,120/- was sent to M/s. Core Organics on 8.10.1996. A copy of this letter is Annexure D-20 and a copy of the cheque is Annexure D-21. The complainant in fact wrote to the respondents on 8.10.1996 that a sum of Rs.86,617/- was to be deducted towards premium (Annexure D-19 ). The complainant conveyed its consent vide letter dated 23.7.1996 accepting the compensation of Rs.2,36,47,737/- in full and final settlement of the claim. It has further been averred that the complaint is liable to be dismissed and the respondents are not liable to pay any amount of interest as there was no inaction or wrong on their part.