TAJ SUGAR WORKS Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) This complaint has been filed for recovery of Rs.11,26,000/- alongwith 18% per annum interest and a sum of Rs.1,00,000/- as compensation.

(2.) The facts of the case stated in brief are that the complainant runs a sugar factory in village Shahbazpur, Post Kotwali Dehat, Distt. Bijnore under the name of M/s. Taj Sugar Factory. Complainant got the insurance of his factory premises done for a sum of Rs.20,00,000/-. The policy commences from 18.1.1995 for a period of one year ending on 17.1.1996. The insurance risk was also covered under the insurance policy for which a sum of Rs.6,783/- was paid as premium. In the factory the stock of sugar cane, 'rab', 'sheera' etc. were kept and they were all insured.

(3.) It is further alleged at about 2 a. m. on 22nd of April, 1995 one Mukesh, labourer had informed the complainant that in two tanks of rab smoke is coming out. When the complainant reached the place of incidence, he found that the rab was burning as smoke and bubbles were coming out. Complainant, therefore, tried to extinguish the fire but it could not be done. The rab which were kept in the tank was of 3000 quintals which were burnt. An FIR was lodged and information was sent to the Fire Department. Letters were also written to the Insurance Company and the claim was also lodged. The complainant had suffered a loss of Rs.11,26,000/- on account of the fire. On 19.6.1995 complainant received a letter from the Surveyor informing him that rab is inflammable material and hence no claim can be given for the same. When the claim was not allowed, the complaint was filed.