JAGATJIT INDUSTRIES LIMITED Vs. NATIONAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The present Complaint is filed under Sec. 21(a)(1) of the Consumer Protection Act, 1986.

(2.) Complainant is a Public Limited Company engaged in the business of manufacturing of liquor. The Complainant had a glass plant at Sahibabad Industrial Area, Ghaziabad. The Complainant also launched Binnie's potato chips and PET containers. In order to cover the risk to building, plant and machinery, furniture- fixture, electric installation and office equipments, the Complainant purchased Standard Fire and Special Perils Policy No.351600/11/10/3400000125 with add on earthquake and terrorism cover, alongwith reinstatement value for a sum of Rs.3,91,52,98,214.00 from the Opposite Parties. The Complainant also took Fire Declaration Policy No.351600/11/10/3400000117, covering the risk for insured stock and stock in process with add on earthquake and terrorism cover for a sum of Rs.77,96,00,000.00, out of which Rs.4,00,00,000.00 was for stock of molasses stored in the tanks. Both Policies were valid from 3/8/2010 to 2/8/2011.

(3.) Case of the Complainant is that on 12/3/2011, at about 12.15 noon, suddenly a loud sound was heard followed by flowing of molasses stored in over ground MS tank. The driver and helpers who had brought molasses for unloading also sustained injuries and were admitted in the nearby hospital and one of the workers died. The explosion and force of molasses was so devastating that the tanker also turned turtle. The Complainant immediately intimated the incident to the Police and the Opposite Parties. The Complainant lodged claim for loss of building, plant and machinery, electrical equipments and molasses, including molasses recovery expenses, apart from damage of civil works/buildings. The Opposite Parties deputed M/s Select Surveyors Pvt. Ltd. to carry out the preliminary survey and M/s Adarsh Associates for assessment of loss. The Complainant completed all necessary formalities and also submitted documents sought by the Surveyors. M/s Select Surveyors Pvt. Ltd. submitted Preliminary Survey Report dtd. 1/4/2011. M/s Adarsh Associates, Surveyors and Loss Assessors submitted Final Survey Report on 1/5/2012 assessing the loss at Rs.1,30,41,699.00 against the claim of Rs.4,05,15,464.00. Despite repeated requests, the Opposite Parties did not settle the claim of the Complainant. On 14/11/2011, the Complainant moved an application under RTI to know the status of the claim. The Opposite Parties, vide letter dtd. 27/2/2014, repudiated the claim on the ground that the molasses tank burst due to weakening of MS Plates/weld joints due to heavy/deep pitting from inside, mainly at the bottom of the tank and the tank was unable to hold the pressure of molasses stored. Alleging deficiency on part of the Opposite Parties, the Complainant filed the instant Consumer Complaint with the following prayer: -