ORIENTAL INSURANCE CO. LTD Vs. P.V. BALAKRISHNAN

JUDGEMENT

(1.) This appeal has been filed by Oriental Insurance Co. Ltd (hereinafter referred to as 'insurance company') under section 19 of the Consumer Protection Act, 1986 against the order dated 25.03.2009 passed by the Andhra Pradesh State Consumer Disputes Redressal Commission, (hereinafter referred to as 'State Commission') whereby the State Commission allowed the complaint filed by the respondent in the appeal, i.e., Balakrishna Tobacco Co., Tangutur, represented by its Partner Takkellapati Venkata Krishna Rao. As per the impugned order, the appellant was directed by the State Commission to pay an amount of Rs.7,85,000/- with interest @9% p.a. from the date of repudiation of the claim till the date of realization together with the costs of Rs.5,000/- to the complainant.

(2.) The appeal has been filed after a delay of 31 days excluding the time taken for obtaining the copy of the impugned order. The appeal was first heard by this Commission on 15.07.2009 when it was decided to issue notice on the application for condonation of delay as well as on the appeal to the respondent. It was also decided to stay the operation of the impugned order passed by the State Commission which was later on extended from time to time. During the hearing on 2.03.2010, the appeal was ordered to be admitted and to be fixed for arguments at a subsequent stage.

(3.) Briefly stated the facts of the case are that the respondent / complainant is a Tobacco dealer and they had stored tobacco in a hired godown situated in Tungutur belonging to Mr. K. Venkaiah. It has been stated that on that date, there was a total stock of 1,26,035 kg. of tobacco in the godown, whose value has been stated to be Rs.49,53,700/-. The said stock was insured by the complainant / respondent with the opposite party / appellant Insurance Company under Policy No. 4390/20/161/F/11071/02 valid from 27.06.2002 to 26.09.2002. It has been stated that on the intervening night of 14th and 15th September 2002, the entire stock in the godown belonging to the complainant was destroyed in fire and according to the complainant, he suffered a total loss of Rs.50 lakh. A police complaint was also lodged and an FIR was registered as crime 68/02 u/s 177/424 of the Indian Penal Code, 1860 at Tangutu Police Station.