NATIONAL INSURANCE CO. LTD. Vs. ARIHANT PACKAGING

JUDGEMENT

(1.) Appellant Insurance Company which was the Opposite Party before the State Commission has filed this Appeal against the judgment and order dated 26.06.07 passed by the State Consumer Disputes Redressal Commission, Madhya Pradesh (in short, 'the State Commission') in Complaint No. 25/01 wherein the State Commission allowing the two complaints by a common order, has directed the Appellant along with New India Insurance Co. Ltd. (OP in CC No.24/01) to pay a sum of Rs.1,00,000/- for the loss caused to the building and Rs.4,00,000/- for the loss to the plant and machinery to the complainant/Respondent along with interest @ 7% from the date of filing of complaints till payment in proportion to their liability under the policies. Rs.5,000/- were awarded towards costs.

(2.) Complainant/Respondent Partnership Firm (hereinafter referred to as the "Respondent") set up a plant at Plot No. 79/6, Industrial Estate, Maxi Road, Ujjain for manufacturing polythene bags. The factory premises consisted of a shed admeasuring 40 x 25 ft. constructed of bricks and cement mortar having only inside plaster and roof of GI Sheet. Respondent obtained two policies from the Appellant and the New India Insurance Company Ltd. as per the following details:-

(3.) On the intervening night of 9th and 10th July, 2000 a fire broke out at the factory of the Complainant which was extinguished by the Fire Brigade. Both the Insurance companies were informed about the fire incident. The New India Assurance Company Ltd. got the investigation and survey done by Surveyors Pradeep Chhajed, CA and N.K. Gupta and Company while the National Insurance Co. Ltd. got the loss assessed by Surveyors, Madhusudan Shyamsunder & Company and N.K. Gupta & Company. Surveyors appointed by the New India Assurance Company Ltd. submitted their report on 16.10.2000 whereas the Surveyors appointed by the National Insurance Company Ltd. submitted their report on 8.12.2000. Under both these reports the insurers' liability was assessed as NIL. Relying upon the reports of the Surveyors, both the Insurance Companies vide letter dated 27.11.2000 and 2.01.01 repudiated the claims filed by the Respondent. According to the Respondent, the fire to the factory was caused by short-circuiting and the entire stock worth more than Rs.10,00,000/- was damaged. The damage to the plant, machinery and factory building was total. Respondent, being aggrieved, filed the complaints before the State Commission claiming Rs.10,00,000/- for the loss of stock (finished and unfinished goods), Rs.11,01,000/- for the damage to the plant and machinery and Rs.3,75,000/- for the damage to the building.