UNITED INDIA INSURANCE CO Vs. JAHANGIR SPINNERS PVT LTD

JUDGEMENT

(1.) THESE two first appeals captioned above arise out of the same order dated 4th January, 1994 passed by the State Consumer Disputes Redressal Commission, Punjab at Chandigarh. The facts leading to the controversy may be recapitulated as under :

(2.) M /s. Jahangir Spinners Pvt Ltd., hereinafter called 'the complainant' is engaged in the business of spinning woolen yarn at Amritsar. The complainant got its stocks, building and machinery insured with the United India Insurance Company Ltd., hereinafter called the 'Insurance Company' vide three different policies of the value of Rs. 12.00 lakhs, Rs. 12.00 lakhs, and Rs. 32.00 lakhs for the periods from 25.5.1992 to 24.9.1993,2.2.1992 to 1.2.1993 and 6.9.1992 to 5.5.1993, covering risk of stocks, building and machinery. On 28th September, 1992 a devastating fire broke ou t at the factory premises of the complainant. On the same date, the matter was reported to the police and on 30th September, 1992 intimation of loss covered by 'Fire Cover Notes' was sent by the complainant to the Divisional Manager of the Insurance Company at Amritsar. The Insurance Company deputed a Surveyor to assess the loss and he submitted its report on 7th January, 1993 assessing total loss of stocks, building and machinery at Rs. 43,62,767/-. On 30th January, 1993 the complainant requested the Insurance Company for settlement and payment of the claim. It was followed by a letter dated 22nd February, 1993 to expedite the payment. Another reminder on 16th June, 1993 was sent to the Insurance Company pressing them to settle the claim and make the payment. On 12th August, 1993 and 30th of August, 1993 payments of Rs. 31,95,290/-and Rs. 10,44,399/- respectively were received by the complainant. The complainant was not satisfied with the amounts paid by the Insurance Company that is why it approached the State Commission, Punjab at Chandigarh, attributing deficiency of service in releasing the amount in time and withholding the payment of interest on account of delayed payment and for deducting Rs. 1,23,078/- without assigning any reason.

(3.) AFTER hearing the learned Counsel for the parties and perusing the record of the case, the State Commission partly allowed the claim and held that the Insurance Company was negligent and deficient in the discharge of service and directed the Insurance Company to pay interest at the rate of 18% per annum on the amounts of Rs. 31,95,290 /- and Rs. 10,44,399 /- from the date of loss i.e. 28th September, 1992 till 12th August, 1993 and 30th August, 1993 respectively. So far as the claim of the complainant for refund of Rs. 1,23,078/- was concerned, the State Commission observed that the complainant could be at liberty to claim the amount in an appropriate Forum available at law, including Civil Court.