UNITED INDIA INSURANCE COMPANY LTD Vs. DILIP INDUSTRIES

JUDGEMENT

(1.) This appeal has been heard ex parte as the respondent did not appear in spite of the notice. O. P. is the appellant-United India Insurance Co. (hereinafter referred to as Insurance Company) which has preferred the appeal against the order dated 26.10.1995 passed by District Forum, Rohtas (Sasaram) in Complaint Case No.36/92 whereby and whereunder the appellant has been directed to pay Rs.11,450/- as claim amount with 18% interest from the date of filing of the complaint case (11.11.1992) till the date of payment and in addition Rs.7,000/- has been allowed as compensation for harassment and Rs.1,000/- as cost of litigation.

(2.) The brief fact of the case is that complainant is the proprietor of M/s. Dilip Industries at Sasaram (Rohtas ). The said industries was insured with the O. P.-Insurance Company for a sum of Rs.45,000/- for the period 21.12.1983 to 20.12.1984. The industries were financed by State Bank of India, Sasaram Branch The industries were manufacturing utensils. It is alleged that in the night of 2/3.8.1984 during the period of insurance a theft was committed in the industries and several articles including utensils, etc. worth Rs.11,450/- were stolen. A police report was lodged bearing No.372/84 dated 3.8.1984 before the local police. After investigation the police submitted final form in the case stating occurrence true but no clue. The final form was accepted by the CJM, Sasaram. The complainant intimated the occurrence to the Insurance Company and demanded the claim. The Insurance Company did not finalize the claim and ultimately the industries were closed. The State Bank of India which has financed the industries filed a case in the Civil Court for the recovery of the amount and the complainant had to pay Rs.1,19,927/- to the Bank. The complainant served legal notice to the Insurance Company but the amount was not settled. Therefore, the complaint was filed before the District Forum claiming Rs.85,000/- as compensation and other cost.

(3.) The Insurance Company appeared and filed written statement alleging therein that no theft took place in the industries as alleged. The Insurance Company admitted about the insurance of the industries during the alleged date of occurrence. No evidence was produced on behalf of the complainant in support of his alleged loss of property due to theft. The Insurance Company asked the complainant to produce the relevant papers but nothing was produced hence the claim was not settled.