BHATIA INTERNATIONAL Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) Alleging deficiency in service on the part of opposite party-United India Insurance Company Limited in settling their insurance claim arising out of Marine Transit Policy No. 191201/21/01/70/97 dated 7th of January, 1998 in the sum of Rs. 3,05,00,000, M/s. Bhatia International, a company registered under the Companies Act, 1956 have filed this complaint, claiming a sum of Rs. 26,38,380 (Rupees twenty-six lakh thirty-eight thousand three hundred eighty only) along with interest at the rate of 21% per annum from the date of the claim till its actual payment and a sum of Rs. 2,00,000 (Rupees two lakh only) towards the compensation for the deficiency in service. The said claim was lodged by the complainant company in respect of the loss suffered by them due to damage to their stock of imported Indonesian Steaming Coal on 26th of January, 1998 and since the claim was not settled by the opposite party-Insurance Company, the complainant company has filed the present complaint.

(2.) The complaint was resisted on the ground that the claim could not be settled because the complainant company failed to provide the requisite material (documents) sought for by the surveyor repeatedly from it. Parties have filed their respective evidences. Going by the survey report, there is no dispute that total damaged quantity of the Steaming Coal, which was damaged due to spontaneous combustion, was 2200 MT.

(3.) Mr. A.K. Raina, learned Counsel representing the opposite party-Insurance Company, has resisted the claim primarily on the strength of a letter dated 1st of February, 1999 issued by the office of Port Officer (Navlakhi Port), Gujarat Maritime Board to the complainant, which reads as under: