ASHU TEXTILES Vs. NEW INDIA ASSURANCE COMPANY & ANR.

JUDGEMENT

(1.) HEARD the learned Counsel for the petitioner.

(2.) THE petitioner/complainant had taken insurance for Rs. 17 lacs for the period 28.1.2002 to 27.1.2003. The insurance related to stocks of raw material, finished goods, packing material, etc. against fire, flood, natural calamities, etc. Fire took place on 17.1.2003 in which the complainant is said to have suffered extensive damage. According to the complainant the estimated damage was to the extent of Rs. 23,29,000 and the claim was put up for the insured amount to the tune of Rs. 17 lacs. The District Forum had ordered the Insurance Company to pay Rs. 17 lacs with 12% interest p.a. thereon from six months of institution of complaint till realisation. Besides this, compensation of Rs. 10,000 and cost of Rs. 5,000 were awarded. This order was challenged before the State Commission.

(3.) THE State Commission by majority judgment allowed the appeal filed by the Insurance Company and directed payment of Rs. 7 lacs with 12% p.a. interest thereon, to be calculated after three months of the fire incident. However, the compensation of Rs. 10,000 was set aside and the order for cost of Rs. 5,000 was maintained. The minority judgment had confirmed he District Forum's order for payment of Rs. 17 lacs with 12% interest thereon. However, it was held that there was no justification to award additional compensation of Rs. 10,000 which was set aside. The majority judgment of the State Commission is challenged in revision before this Commission.