CNANASOUNDRI Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) In this Original Petition the facts in brief are that the complainant had taken a fire policy for Rs. 25 lakhs from the opposite party and fire broke out in premises of the complainant on 8.12.1986. On 10.12.1986 the complainant was served with a notice from the Municipal Corporation. Madras, declaring the building in ruinous state and aksed the complainant to take steps to repair the building within seven days and on 26.2.1987 a claim was lodged by the complainant with the Insurance Company for Rs. 25 lakhs. Surveyors were appointed by the opposite party to take inspection of the building. It is very peculiar to note that the Surveyor took inspection of the premises more than 2 years after the fire broke out. The complainant has led evidence that the building was got repaired by obtaining advance towards rental which was adjusted by them later and also obtained bank loan for the purpose as the Insurance Company had failed to settle the claim. The complainant also filed a civil suit and, thereafter, the present complaint with an under-taking that she will withdraw the Civil Suit and the Civil Suit was consequently withdrawn. Even the Architect appointed by the complainant gave an estimate of damage done to the building of Rs. 1 crore.

(2.) The Surveyor appointed by the opposite party estimated the loss at a little more than Rs. 17 lakhs and even that was not paid as the Insurance Company insisted on production of bills for the repair. The complainant had admittedly failed to produce the bills. The reason given by her was that her husband who was earlier prosecuting the case had since died and before she could submit those bills to the Insurance Company there was an income-tax raid in which all records were seized and that resulted in her liability to produce the bills.

(3.) The opposite party has defended the claim of the complainant on two grounds : (i) res judicata. In view of the fact as suit was withdrawn in view of the pendency of the original complaint and no final verdict was rendered by any Court earlier, we do not think the plea of res judicata has become available to the opposite party as there was no adjudication of the claim earlier.