ORIENTAL INSURANCE CO. LTD. Vs. BALAKRISHNA TOBACCO CO.

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 25.3.2009 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. 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 5.7.2009 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 2.3.2010, the appeal was ordered to be admitted and to be fixed for arguments at a subsequent stage.

(2.) 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 27.6.2002 to 26.9.2002. 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 under Section 177/ 424 of the Indian Penal Code, 1860 at Tangutur Police Station.

(3.) IT is also stated that another Insurance Company, the United India Insurance Co. received a letter dated 9.9.2002 stating that the respondent/complainant along with several other traders were conspiring to burn the godowns, either, without storing any tobacco therein or by removing the tobacco stock to other godowns in other areas; thereby, extracting money from the Insurance Company by lodging false claims. The said complaint is stated to have been forwarded to the local Police for investigation immediately. However, the fire incident did take place on 14th/15th September, 2002. The appellant Insurance Company repudiated the claim on various grounds saying that complainant had violated the terms and conditions of the policy and had not submitted the claim within a period of 15 days and also failed to furnish the necessary documents to the Surveyor, etc. The State Commission after taking into account the evidence before them, directed to pay a sum of Rs. 7,85,000 along with interest @ 9% p.a. from the date of repudiation till the date of realization together with cost of Rs. 5,000.