SHRI PIPES LTD Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) Appellant is aggrieved by the order of the State Consumer Disputes Redressal Commission, Rajasthan, dismissing these two complaints. The two appeals are connected. Parties are the same so far as facts, except these pertain to two different consignments. We take the facts in the case of Original Petition No. 188 of 2001.

(2.) The appellant is a factory manufacturing pipes etc. in the State of Rajasthan. The appellant's registered office is at Hamirgarh, Distt. Bhilwara, Rajasthan and it has offices in Mumbai. It manufactures pipes etc. using asbestos raw as raw material, the import of which is regulated as per Export and Import Policy of Government of India. The import of this raw material is regulated by the Mineral and Metal Trading Corporation of India (M.M.T.C.). Raw material is sold to the allottees, appellant being one of them, on C.I.F. (cost insurance and freight) basis after having obtained in advance the full price of the goods from the allottees. It is for the allottee to get the clearance of the goods after completing necessary formalities from the Customs and Mumbai Port Trust. We may also note that the goods are also insured and shipment is done by the Shipping Corporation of India, also a Government of India undertaking.

(3.) It is the case of the appellant that on 11.9.1990, M.M.T.C., allotted to him 135 sq. mts. asbestos valuing Rs. 16.75 lakhs. The goods sold were insured with M/s. Oriental Insurance Co. Ltd. who had charged a sum of Rs. 8,461.20 from the appellant towards insurance premium. The goods were imported from Canada to Mumbai in 6 lots in the steamer, Jalgopal. When the complainant sought delivery of the goods from the Mumbai Port Trust authorities, it was found that the goods were short in quantity. Appellant had appointed M/s. Khimji Poonja & Co. as its Clearing Agents for completing the necessary formalities. Appellants lodged a claim with the Mumbai Port Trust and the Shipping Corporation of India through its Clearing Agents. Its Clearing Agents filed claims with M/s. Oriental Insurance Co. Ltd. for a sum of Rs. 6.75 lakhs. Appellant says that in spite of the Insurance Company having appointed Surveyors to assess the loss and the Surveyors had confirmed the short availability of the goods, yet its grievance was not redressed by all the parties who have been impleaded as respondents in the complaint filed in the Rajasthan State Commission. Appellant claimed Rs. 6,75,583.34 on account of shortage of goods, Rs. 31,600/- for litigation expenses, Rs. 1 lakh as compensation for mental agony, physical discomfort and expenses incurred on postage, telephones etc. totalling over Rs. 8 lakhs. Appellant also claimed interest. Respondents on notice being issued to them raised preliminary objections to the maintainability of complaint itself, thus being the jurisdiction of the State Commission; claim being already subjudice in a suit filed by the appellant in the Mumbai High Court; non-joinder of MMTC, who sold the goods, to the appellant; there being no relationship of consumer and provider of goods/services between the appellant and the respondents.