ORIENTAL INSURANCE COMPANY LTD. Vs. RISHABH REFECTORIES LTD.

JUDGEMENT

(1.) Consumer Complaint No.22 of 2005, filed by M/S. Rishabh Refractories Ltd, was decided by the State Consumer Disputes Redressal Commission UT of Chandigarh on 31.1.2008. The insurance claim of the Complainant Company against rain damage was allowed for a sum of Rs.19,54,666/- together with 12% interest from two months after the date of the surveyors report i.e. with effect from 4.10.2005.

(2.) The above verdict has been challenged by both sides. In FA No.109 of 2008, the Oriental Insurance Company Ltd, has sought reconsideration of the award by this Commission. In FA No.110 of 2008 the Complainant Company has prayed for enhancement of the award to the level of the claimed amount of Rs.80,74,646/-, together with an increase in the rate of interest awarded by the State Commission.

(3.) The facts, as presented before the State Commission are that the complainant Company has been in the business of manufacturing high quality fire bricks, insulation bricks, high aluminium bricks, salt-glazed pipes and several other types of fire and acid resistant clay insulators. Refractories are products which are manufactured from materials like clay, silica, quartz and bauxite. They can withstand very high temperatures and pressures and are essential to steel, glass and cement industries. In 2002 the Company took up its modernization with Rs.85 lakhs term loan from the State Bank of Patiala. The bank also sanctioned and extended cash credit limit of Rs.25 lakhs to the Complainant Company. The modernization plan was implemented during 2002-2004 period, under the continuous scrutiny and supervision of the lending Bank. Further, in three policies taken in April, May and June 2004, the stocks were provided insurance cover of Rs.100 lakhs.