SIKKA PAPERS LIMITED Vs. NATIONAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) This appeal under Section 23 of the Consumer Protection Act, 1996 (for short 'the Act') is at the instance of the complainant as its claim to the tune of Rs. 35,06,000/- against the National Insurance Company Limited (for short 'insurer') has not been accepted in its entirety and the National Commission in its judgment and order dated July 18, 2002 directed the insurer to pay to the complainant an amount of Rs. 10,47,491 only along with interest at the rate of 12% from March 1, 2000, till the date of payment after adjusting the amount already paid.

(2.) The facts from which the controversy arises are these : The complainant, Sikka Paper Limited, is a limited company engaged in the manufacture of paper having a paper mill unit in District Muzaffarnagar (U.P.). For want of regular and continuous supply of electricity from the Uttar State Electricity Board, the complainant purchased the Diesel Generating Set of 1000 KVA of Kirloskar Cumins Limited with alternator of 1250 KVA for the smooth running of its unit. The said diesel generating set along with alternator was got insured by the complainant for a period from April 8, 1999 to April 7, 2000 for Rs. 35,00,000/- vide insurance policy No. 451902/46/99/415. The complainant paid a premium amount of Rs. 55,860/- to the insurer.

(3.) On December 25, 1999, the said generating set broke down and it could not start again despite efforts. The concerned officers of the insurer were intimated in this regard by the complainant and they were requested for arranging immediate survey of the insured generating set. The first surveyor appointed by the insurer is said to have completed his inspection on December 26, 1999 and advised the complainant to send the engine to the authorized repairers viz., Cumins Diesel Sale and Service (India) Limited, Pune. On December 30, 1999, another surveyor is said to have inspected the diesel generating set and identified the damages and the complainant with the consent of the insurer, sent the diesel generating set for repairs to authorized repairers at Pune. The authorized repairers gave the estimate of expenses of repairs to the tune of Rs. 27,00,395/- and repaired the diesel generating set. The complainant is said to have paid Rs. 25,00,000/- to the repairers.