SWASTIK ENTERPRISES Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) THE facts of the case are that the complainant firm engaged in the business of cotton fabric development and trading obtained a Buyer and Special Perils Policy from the OP insurance company, prevalent from 19.09.2003 to 18.09.2004 for an insured sum of Rs.43 lacs, which included insurance of building for Rs.3 lacs, and Rs.40 lacs for category -I stocks. A fire engulfed the premises on the intervening night of 9th/10th January 2004 and according to the complainant pieces of clothes weighing 36000 kg amounting to Rs.30,10,045/ - which the complainant purchased @Rs.80/ - per Kg, from M/s. Jaya Traders, 815, Kedar Building, Clock Tower, Subzi Mandi, Delhi -11006 and from S.S. Trading Co. 3/5144, Krishan Nagar, Karol Bagh, New Delhi -110005, were burnt as a result of fire. The details of bills and invoices of these firms issued towards the sale and their payment by the complainant through the bank found mention in the statement of bank account Ex. CW -1/29 to CW -1/30.

(2.) ON 27.01.2004 the complainant filed a claim (at page 48) before the OP to pay him Rs.30,57,141/ - towards the loss. The OP appointed Atul Kapoor and Co. as his surveyor on 31.03.2004, who filed their report expressing inability to recommend the payment of claim, in view of para No.8.1 to 8.10 of their report, viz that at the address of firm namely S.S. Trading, given by the complainant, is a residence and the occupant therein had expressed unawareness about any such firm, a letter sent to S.S. Trading, against the address given, was returned with the remark that No such Person existed there and thus no firm S.S. Trading exists. Further the bills referred and said to have been issued by Jaya Traders of purchase and sale from him by the complainant, were not supported by Jaya Traders by providing documentary evidence, including GRs, weight slips of consignments, and Jaya Trader had stated that no GR was available with him as the goods were not booked through transport but through local carriers. The supplier (Jaya Traders) was of Delhi and the consignee (purchaser/complainant) was of Bhiwadi (Rajasthan). The surveyor in their report noted that the complainant was claiming the loss of the stock comprising large pieces of cloths purchased at a rate of Rs.80/ - per kg., while at the time of survey small pieces of cloth were showed as burnt by the complainant, purchased at a rate of Rs.11/ - kg., and not a single large piece of cloth was found in the rubble. The surveyor further noted that general condition No.8 of the insurance Agreement provides that if the claim is fraudulent, or fraudulent means or devices are used or false declaration is made by the insured or the loss is occasioned by the willful act of the insured, all benefits under this policy shall be forfeited.

(3.) VIDE letter dated 15.06.2004, (copy at page 68) on basis of the report of the surveyor mentioned hereinabove and that the complainant had not supplied the required papers/documents, to the surveyor, the OP repudiated the claim of the complainant.