ORIENTAL INSURANCE COMPANY LTD Vs. RUCHI WORLDWIDE LTD

JUDGEMENT

(1.) THIS order shall dispose of two writ petitions, being wp No. 1998 of 2001 and WP No. 1743 of 2001, as both the writ petitions have arisen out of the orders passed by the insurance Ombudsman. WP No. 1998 of 2001 has been filed by Oriental Insurance Company Ltd. (hereinafter referred as the Insurance Company), challenging the order dated december 4, 2000, passed by the Ombudsman, whereby the preliminary objection raised by the Insurance Company regarding the assumption of jurisdiction by the Ombudsman has been rejected, and also raising a further challenge to the award dated April 10, 2001, whereby the Ombudsman has directed the payment of Rs. 17,92,194/-, along with interest, to M/s Ruchi Worldwide Ltd. (hereinafter referred as the complainant-company ). WP No. 1743 of 2001 has been filed by the complainant-company, requesting for a writ of mandamus and for issuance of directions to the Insurance regulatory Authority of India, as well as the Insurance company, to make the payment as per the award dated April 10, 2001 passed by the Ombudsman. For the sake of convenience, the main order is being passed in WP No. 1998 of 2001.

(2.) THE complainant-company M/s Ruchi Worldwide ltd. is a company incorporated under the Companies Act, 1956. The Oriental Insurance Company Ltd. is an Insurance company governed by the provisions of the Insurance Act, 1938 (hereinafter referred as Act) and the Rules framed thereunder.

(3.) THE complainant-company imported 5,000 metric tons of white crystal sugar from Brazil. The said consignment was insured and covered by a Marine insurance Cover, issued by the Oriental Insurance Company. At the time when the said consignment was discharged at calcutta Port, it was realized that the consignment had suffered damage on account of cut/torn bags, and as such the complainant-company claimed that it had incurred huge losses. Consequently, the complainant-company took-up the matter with the Insurance Company and after completing the formalities, an insurance claim was lodged. However, the said claim was repudiated by the Insurance Company. On such repudiation, the complainant-company filed a complaint under Rule 13 of The Redressal of Public Grievances Rules, 1998 (hereinafter referred as the Rules ). The said complaint was entertained by the Ombudsman and a notice was issued in the matter. The Insurance Company raised a preliminary objection to the entertainment of the complaint by the ombudsman and assumption of jurisdiction by him. It was maintained by the Insurance Company that since the complaint had been filed by a Company incorporated under the Companies Act, therefore, under the Rules, no such complaint was maintainable in law, and therefore, the ombudsman had no jurisdiction to adjudicate the said complaint. On merits of the claim made by the Complainant-company, a contest was also offered.