DERA PAINTS Vs. NEW INDIA ASSURANCE COMPANY LTD

JUDGEMENT

(1.) The present Complaint is filed under Sec. 21 (a) (1) of Consumer Protection Act, 1986. The Complainant is a Limited Public Company incorporated under the Companies Act, 1956. The Complainant is predominantly engaged in the manufacture and trading of all types of decorative paints, industrial solvents, thinners and other allied products.

(2.) The Complainant purchased Insurance Policies from the Opposite Party as per following details: - <FRM>JUDGEMENT_26_LAWS(NCD)11_2022_1.html</FRM>

(3.) The case of the Complainant is that on 15/11/1998, at about 6:00 pm, fire broke out in the Building of the Plant when the manufacturing process of rotating the stirrer inside the mixer was going on. The fire was either due to short circuit or static electricity. All raw materials, semi-finished and finished goods, packing materials, machineries and accessories and office records such as stock, purchase and sales register and other documents and accounts lying in the building of the factory were completely burnt. The Building was also extensively damaged in fire. On 16/11/1998, FIR was lodged in the local Police Station and the Insurance Company was also intimated about the fire incident. The Opposite Party appointed M/s C.P. Mehta and M/s B.P. Shah and Associates as Surveyors. The Surveyors inspected the site of fire on 17/11/1998. All the required documents and information was provided to the Surveyor. The Opposite Party also appointed Loss Prevention Association (LPA) to investigate the matter, who visited the Plant on 7/2/1998 and observed that the raw materials, semi-finished, finished goods and packing material were fully damaged along with extensive damage to the Building, Machinery and Fittings and assessed the loss to the tune of Rs.1.5 crores. On 26/11/1998, The Opposite Party also deputed Tariff Advisory Committee (TAC) to carry out the investigation, who observed heavy damage to the Building, electrical installation, Stocks and Plant and Machinery. The Opposite Party also deputed C.P. Mehta and Co. and B.P. Shah and Associates as Surveyors and Loss Assessors, who submitted their final report dtd. 18/7/2002. The Complainant lodged the claim, vide letter dtd. 9/12/1998. Thereafter, the Complainant, vide letter dtd. 13/2/1999, sent a revised claim of Rs.1,63,19,035.37 to the Opposite Party. The Surveyor, vide letter dtd. 16/11/2000, asked the Complainant to furnish final claim after affecting the deductions allowed by the Central Excise Department. The Complainant, vide letter dtd. 23/11/2000, furnished final claim of Rs.1,59,68,010.07.