S B ENTERPRISES Vs. NATIONAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) PETITIONER is the owner of a factory and carrying on the business of manufacturing Crown Caps. Shri Som Prakash Garg is the sole proprietor of the said concern. He got the factory insured with respondent No. 1 vide policy dated 27.9.89. It is alleged that on the night intervening 29/30th Oct., 1989 fire broke out in the factory resulting in heavy damage to the building, stock and machinery. The First Information Report regarding the incident was lodged with the Police Station, Model Town, Delhi.

(2.) ACCORDING to the terms and conditions of the Fire Insurance Policy the following risks were covered to the extent of the amounts mentioned against each: -

(3.) IT is alleged that instead of finalizing the report regarding damage caused to the complainant by fire, the surveyor; with a mala fide intention and in order to avoid the finalization of the claim demanded audited balance sheets by Chartered Accountant, since the inception of the unit in the year 1978. It is further alleged that the petitioners unit was a small unit and they did not get their balance sheets audited from a Chartered Accountant (C.A.) nor they were required under Income Tax Act or any other law to get the same audited from C.A. However, they had already furnished the other documents required by the respondent. Regarding the claim for the machinery, building and electrical wiring respondent No. 2 advised the complainant to undertake actual repairs and submit the bills alongwith supporting documents. The complainant got the machinery and building repaired as advised by respondent No. 2 and submitted the bills vide letter dated 1.2.90. The total amount for repairing the machinery came to Rs. 85,130/ -, for repairing the building Rs. 45,620/ -, for laboratory replacement Rs. 10,190.99. Regarding the damage to the stocks, they submitted physical inventory of the stock. The price of the said stock was Rs. 49,081.92. They also submitted survey report from Shri Umesh Kumar Ramani Engineer vide a letter dated 1.12.89 to the effect that finished and unfinished crown caps could not be used for packing food products due to rust caused by water, fire and smoke. It is further alleged that after the lapse of more than 6 months the petitioners claim has not been settled by respondent No. 1. They have been suffering immensely on account of non -payment of their claim. They have claimed Rs. 1 lakh on account of loss in business. Consequently, they filed a claim for the recovery of Rs. 2,88,940.99p.