KAMALRAJ PALIWAL Vs. NATIONAL INSURANCE CO. LTD

JUDGEMENT

(1.) This revision petition has been filed under sec. 21 of the Consumer Protection Act, 1986 (in short, 'the Act') assailing the order of the Uttar Pradesh State Consumer Disputes Redressal Commission, Lucknow (in short, 'the State Commission') in appeal no. 562 of 2007 allowing the appeal filed by the respondent and setting aside the order of the District Consumer Disputes Redressal Forum, Mahamaya Nagar (in short, 'the District Forum') in OS no. 172 of 2003 dtd. 5/2/2007.

(2.) The facts in brief are that the revisionist is the Secretary of the Paliwal Politex Sansthan a registered unit under Khadi Gram Udyog Board. He had taken a fire insurance policy from the respondent for the period 19/11/2001 to 18/12/2002 for Rs.6.00 lakh covering raw material, machines, goods ready for sale and building. Due to a fire on 4/4/2002 midnight all the stock material including raw and ready material and machines were burnt. The respondent was intimated on 5/4/2002 and on the same evening a surveyor Mr Prem Prakash Mandal was deputed by the respondent for inspection. It is the petitioner's case that the surveyor's report that the entire stocks had been burnt except goods valued at Rs.5900.00 was not provided to the revisionist The respondent thereafter appointed another surveyor Mr A K Gumber who surveyed the premises on 30/6/2002 and prepared a loss report of Rs.2,80,000.00. The respondent pressurised the revisionists to accept a full and final settlement of Rs.2,74,701.00 on 21/7/2003 which was accepted by him as he was in urgent need of money due to the losses incurred. However, on 25/7/2003, the petitioner contested the settlement and sought the settlement of his claim of the balance amount. As there was no response from the respondent, the revisionists filed a complaint before the District Forum, Hathras (UP) being complaint no.172 of 2003. Vide its order dtd. 5/2/2007, the District Forum allowed the complaint and directed the respondent to pay Rs.2,82,562.00 to the revisionists with 9% interest. The respondent had challenged this order by way of appeal no. 562 of 2007 before the State Commission which decided on 5/2/2007 to set aside the order of the District Forum.

(3.) Revisionist has impugned this order on the grounds that value of the inventory and stock of the revisionists as on 4/4/2002 was Rs.5,64,255.00 as approved by the Punjab National Bank, the financing bank. The Fire Brigade which responded to the fire incident had also estimated the damage at Rs.5,85,000.00 in its report. It is also contended that respondent has filed a report of a Chartered Accountant, Mr Praveen Kumar Jain, before the District Forum showing that the stocks on 4/4/2002 was valued at Rs.5,65,163.00. The surveyor who inspected the loss on the day after the fire, Mr Prem Prakash Mandal, had also stated in his report that only goods worth Rs.5900.00 could be salvaged and that huge quantity of cotton and synthetic yarn had been completely burnt. The revisionist has averred that he accepted the full and final settlement of the respondent in view of his financial condition on 21/7/2003 but had protested against this immediately thereafter on 25/7/2003. He has prayed that the impugned order be set aside and the order of the District Forum be restored along with any other relief in the interest of justice.