GAJANAND GOYAL Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) THIS order will dispose of both the above titled appeals arising out of the same order dated 23rd October, 1992 passed by the State Commission, Delhi in case No. C-14/92 by which the said Commission has partly accepted the complaint filed by Shri Gajanand (Appellant in F. A. No. 591/92 and Respondent in the cross appeal F.A. No. 592/92) and directed the New India Assurance Co. Ltd. (for short the Insurance Co. and who is Respondent in cross appeal F.A. No. 591/ 92) and Appellant in F.A, No. 595/92 to pay an amount of Rs. 96,000/- with interest at the rate of 16% per annum from the date of filing of the complaint till the payment within a period of three months from the date of the order. Both the parties are not satisfied with that order and have come before this Commission by way of above appeals.

(2.) THE facts are that Shri Gajanand, Complainant is carrying on business as a cloth merchant in shop No. E-2, Main Road, Dayal Pur, Delhi, he obtained a shopkeepers insurance policy in respect of his shop for Rs. 1,20,000/- divided as under: On the night intervening 1st and 2nd October, 1991 a fire broke out in the shop of the Complainant as a result of which goods and accounts books lying therein were burnt. It was further alleged by the Complainant that on account of fire in his shop he suffered a loss of Rs. 2.00 lakhs. The Complainant informed the Opposite Party about the incident on 3rd October, 1991. Shri A.K. Gupta was appointed as Surveyor by the Insurance Co. to assess the loss. The Surveyor submitted his report dated 13th December, 1991 assessing the loss of the Complainant at Rs. 20,000/-. The Complainant was not satisfied with the Surveyor's report nor the Insurance Co. took any further steps to settle the claim. Consequently the Complainant filed a complaint under the Consumer Protection Act, 1986 before the State Commission praying that the Insurance Co. He directed to pay an amount of Rs. 2.00 lakhs with interest at the rate of 18% from the date of loss till recovery.

(3.) AS the factum of fire in the shop of the Complainant was not disputed the only question that arose for determination before the State Commission was whether the Complainant was entitled to a compensation of Rs. 2.00 lakhs as claimed by him. The details of the amount of compensation claimed by him are as follows: 1. The price of the stock destroyed in the fire: Rs. 1,50,000/- 2. The price of the furniture and fittings destroyed in the fire: Rs. 20,000/- 3. Damage on account of harassment: Rs. 30,000/- The Complainant produced certain bills invoices about cloth said to have been purchased after 31st March, 1991. The State Commission held that those documents did not inspire confidence as the account books and affidavits of the proprietors of the firms from whom those goods are said to have been purchased had not been produced. The Surveyor had also not placed any reliance on those bills/invoices. Consequently those bills and invoices were rejected. The State Commission took the balance sheet ending 31st March, 1991 into consideration. The closing balance according to that balance sheet, on that date was Rs. 1,53,820/-. The State Commission held that the Complainant must have sold one-Half of the goods during the six months preceding the fire and therefore it was held that at the time of fire the stocks worth Rs. 76,960/- (rounded to Rs. 77,000/-) must be in the shop at the time of fire. The value of fixtures and furniture on 31st March, 1991 was shown in the balance sheet at Rs. 18,152/-vThe Complainant had been claiming depreciation on the furniture at the rate of 10% per annum. The Commission further took the depreciation at 5% upto the date of fire on that item and after deducting that amount from the value of the furniture etc. the value was arrived at Rs. 17,200/-.