ORIENTAL INSURANCE CO LTD Vs. ASHA PAUL

JUDGEMENT

(1.) A claim had been filed before the J&K State Consumer Protection "Commission" hereinafter referred to as "Commission" for an amount of Rs. 4.05 Lakh, which was the insured amount. The complainant had also claimed compensation for mental agony and interest and also the costs. The commission allowed the claim to the extent of Rs. 4.05 Lakh. This appeal has been filed against the order of the commission. Cross objections have also been filed by the respondent by which it has been prayed that the costs and compensation be allowed in his favour in addition to Rs. 4.05 Lakhs, which has been allowed by the Commission. The brief facts leading to the claim before the Commission are that complainant is the Proprietor of M/ S Kashmir Carries Corporation, Magarmal Bagh, Srinagar. She was transacting business of booking, forwarding and clearing Agent with its office at Magarmal Bagh, Srinagar, since long. He submitted that his main source of income was the transport company which had been insured with the premises and all its assets and stocks with the appellant Insurance Company, hereinafter referred to as "Company", through its Branch Manager, Kupwara, against premium paid in cash for the year 15 February, 1990, to 14th February, 1991. The complainant had submitted that he had paid the premium of Rs. 4,718/ - in cash on 15th February, 1990, against proper receipt issued to him by a recognised agent of the company. The premises of the complainant got gutted in fire during the night intervening 25/26th February, 1990. The Police report was lodged on 26th February, 1990 and on 19th March, 1990, the complainant filed a complaint before the Insurance Company at Jammu. The claim was filed at Jammu because the complainant and his family had migrated to Jammu because of the situation prevailing in the valley. The complainant further submitted before the Commission that Company accepted the application for claim at Jammu because the officials of the company working at Srinagar had also migrated and were transacting their business from a Camp Office at Jammu. The Company appointed M/S Shoba Pvt. Ltd. and Mr. M.K. Wali as Surveyors of the loss vide letter dated 15 -6 -1990. The complainant visited Srinagar in September, 1990 and inspected the gutted premises. According to him he was assured by the company that his claim is being settled soon but when nothing was heard for about two years, the complainant issued a notice to the General Manager of the Company for settlement of the claim.

(2.) THE notice did not produce any results and the claimant filed an complaint before the Commission, he sought an amount of Rs. 4.05 Lakhs as insurance amount and also Rs.2.00 Lakh by way of compensation, costs and interest. It appears from the impugned order that the main ground which was taken before the Commission by Company was that the amount of premium had not been received by the Company till the occurance of fire took place.

(3.) I have heard the learned counsel for parties. Mr. A. V. Gupta appearing for appellant has challenged the order of the Commission mainly on two grounds; firstly, he has contended that the Insurance Company is not within the purview of the Jammu and Kashmir Consumer Protection Act, 1987; and secondly, he has contended that even if it is assumed that the Commission has jurisdiction to entertain and decide the complaint, even then the order of the Commission cannot be allowed to sustain in view of the fact that the Company had not received the premium from the complainant till the occurance took place. It is not necessary for me to go in detail to the arguments put forth by Mr. A.V. Gupta on the scope of J&K Consumer Protection Act, 1987, in view of the judgment of the Supreme Court reported in AIR 1994 SC 787.