PRADEEP INDUSTRIES Vs. ORIENTAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) By this complaint under Sec.17 read with Sec.12 of the Consumer Protection Act, 1986 (for short the "c. P. Act"), complainant-M/s. Pradeep Industries a partnership firm claims Rs.13,03,625/- towards sum assured and Rs.1,23,821/- as custom duty, besides Rs.18,970/- as miscellaneous expenses, total Rs.14,46,416/- from respondent, the Oriental Insurance Co. Ltd.

(2.) Facts of the case are more or less admitted. The complainant-firm had on 16.2.1998 taken out a Marine Cargo "b" type policy from respondent-insurer, insuring 250 metric tons of toor whole for a sum of Rs.30,00,000/- during voyage from Yangon (Myanmar) to Bombay Port. Out of this lot of 250 metric tons, 2000 bags containing net weight 98.686 metric tons of toor whole costing Rs.13,03,626/- was loaded in a vessel M. V. Jaipur from Angon Myanmar to Bombay Port (India) on 12.4.1998. On way, the vessel caught fire on 13.4.1998. The vessel reached Bombay Port on 18.4.1998 but the same was taken back to mid-sea by way of safety measure under orders of the Port Authorities. The cargo on board "s. S. Jaipur" was inspected by medical officers of the Port Health Organization on 17.3.1999 and it was observed that in hold Nos.2 and 3 smokes and fumes were emanating and the cargo was burnt. In hold No.1 also smokes and fumes were coming out through gaps of Hatch Lids. They advised the crew not to open the lids due to fear of fire. However, it appears that before pulling out the ship a part of cargo 317 bags from hold No.2 were discharged into barges but the same were also torn and mutilated due to fire. It was for the first time on 3.6.1999 that the Bombay Port informed the complainant-consignee that if the cargo of 317 bags of toor whole was not cleared by 21st June, 1999, the Bombay Port authorities will sell the cargo. The consignee's clearing agent inspected the cargo and found that the same did not belong to them. Their cargo was loaded in hold Nos.1 and 3. The complainant thereafter informed the respondent-insurer about the loss.

(3.) Sharma and Company, Marine Insurance Surveyors and Assessors appointed by the respondent-insurer, carried out survey of the imported consignment and came to the conclusion that it was a case of total loss of 98.636 metric tons of toor hole. They observed: "as the consignment was damaged/short landed while the same was under the custody of a steamer agent, we advised the consignee to hold the steamer/liner agent liable for the loss that the consignee sustained thereto. Anyhow, as the vessel declared as "loss under General Average Clause" the claim may be settled accordingly and as per the pending Court directions. "