RUGHA RAM Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) This complaint under Sec.15 of the C. P. Act, 1986 (the 'act') by Sri Rugha Ram, complainant in his capacity as a partner of M/s. Meel and Co. , Sikar, had been filed under the following circumstances.

(2.) M/s. Meel and Co. , the actual complainant in this case, is a partnership firm registered as "a" Class contractor with the concerned departments of the Govt. of Rajasthan. Of its six partners, Sri Rugha Ram, complainant is its managing and working partner. This firm is engaged in the business of executing work contracts regarding construction of roads, bridges and other works of like nature awarded to it by Public Works Deptt. and other departments of the Govt. of Rajasthan.

(3.) During the year 1995 the complainant had obtained from PWD, Sikar a work contract for upgrading Nawalgarh-Sikar Road from 0.00 to 25.5 km. The work was to be completed by June 1995. In order to execute the said work the complainant obtained a Medium Term Loan of Rs.6,70,000/- from Punjab National Bank, Kotwali Road, Sikar against the security of Plant and Machinery installed near village Kundil on Nawalgarh-Sikar Road. The machineries mainly included Tar Boiler, Pover Finisher and Hot Mixed Plant allegedly purchased by the complainant from M/s. Surjeet Singh Engineering Works, New Delhi during the months of March and May, 1995. With a view to secure the interest of the money-lender and the borrower, a CPM Policy for Rs.7,92,500/- for the period from 6.6.1995 to 5.6.1996 was obtained for and on behalf of the firm from the Sikar Branch of the New India Assurance Co. Ltd. This policy was got renewed from year to year and at the time of the incident in the instant case on 1.4.1998 was valid and effective as the same was lastly renewed on 6.6.1997 for Rs.12,61,500/- for the period from 6.6.1997 to 5.6.1998 under Cover Note No.77759. This cover note insured the risk against loss or damage to- ( i ) Tar Boiler with Bowler Rs .2,34,000.00 (ii) Tar Boiler (small) Rs .3,85,500.00 (iii) Hot Mix Plant Rs .5,20,000.00 (iv) Paver Finisher Rs .4,69,000.00 Total Rs .12,61,500.00