MODERN SYNTEX Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) This complaint has been filed by M/s. Modern Syntex (India) Ltd. claiming an amount of Rs.2,92,964/- and interest on various amounts from various dates as mentioned in para 20 of the complaint. Apart from that an amount of Rs.1,00,000/- has been claimed as expenses incurred by the complainant in pursuing the claim.

(2.) The complainant has obtained an insurance policy from the opposite party with respect to the period from 21.7.1980 to 20.7.81. The sum insured was Rs.21 crores and the risk covered was for TR, RR TPND, theft, pilferage, nondelivery, fresh and rain water damage, warehouse to warehouse risk for incoming raw material and outgoing finished product. The complainant has despatched synthetic blended yarn to their agent M/s. Manak Trading Company, M/s. Swaran Woollen Mills and M/s. Ladlaa Knitwear of Ludhiana on consignment basis valuing Rs.1,65,64,821.50 during the period from 1.12.80 to 30.4.81. Out of this amount payment worth Rs.1,27,03,063.50 were released by the agents. Goods worth Rs.38,61,758/- remained unpaid and it was despatched between 22.12.80 to 3.3.81. Goods worth Rs.30,07,632/- were despatched through M/s. Yadav Tpt. Services and goods worth Rs.8,54,126/- were despatched through M/s. Yadav Transport Company.

(3.) It has been alleged in the complaint that Mr. Swaranjeet Jain and other partners of M/s. Manak Trading Company by making conspiracy with the Manager of Ludhiana office of M/s. Yadav Transport Servicesand M/s. Yadav Transport Company took the unauthorised delivery of goods from the transporter without obtaining original MIRs/frs from the bank/consignee and caused loss to the extent of Rs.38,61,758 /- to the complainant. The complainant lodged the claim on 19.5.81 on account of theft and non-delivery of goods of Rs.29,00,000/- with the opposite party-Insurance Company and further lodged another claim for Rs.10,01,318/-. The opposite party appointed M/s. J. B. Boda Marine and General Service Agencies Pvt. Ltd. as Surveyor for investigating the claim. After investigation the opposite party accepted the claim of Rs.38,61,758/- of the complainant and informed about it by letter dated 24,4.1982. Out of this accepted claim of Rs.38,61,758/- the opposite party had already paid a total amount of Rs.27,91,126/- to the complainant upto 29.6.1982. A sum of Rs.10,70,632/- remained balance payable to the complainant on the said date. The complainant has registered an F. I. R. against the accused persons with the assistance of Rajasthan Police and Detective Agency and recovered goods for Rs.4,84,703/-. After giving credit to this amount, it has been alleged that a sum of Rs.5,85,929/- remained payable by the opposite party. After a lot of pursuation, the opposite party ultimately agreed to release 50% of the above claim of Rs.5,85,929/- by way of loan on certain terms and conditions which were communicated to the complainant on 11.5.84. As required by the opposite party, the complainant submitted an undertaking to it. Upon furnishing of the undertaking the opposite party released a sum of Rs.2,92,965/- in favour of the complainant in June, 1984 leaving a balance of Rs.2,92,964/-. This balance amount of Rs.2,92,965/- has not so far been paid by the opposite party to the complainant. The complainant has, therefore, claimed a sum of Rs.2,92,964/-. He has also claimed interest @ 24% p. a. on Rs.38,61,758/- from 19.5.81 to 26.4.1982, and interest @ 24% p. a. on Rs.25,47,069 /- from 27.4.82 to 6.5.82, interest @ 24 % p. a. on Rs.18,26,151/- from 7.5.82 to 29.6.82, interest @ 24% on Rs.5,85,929/- and again on Rs.5,85,929/- from 30.6.82 to 31.5.84 at the same rate and further interest @ 24% p. a. on Rs.2,92,964/- from June, 1984 till realisation. The complainant has also claimed a sum of Rs.1,00,000/- on account of expenses incurred by him in pursuation of balance amount of the claim by continuous discussions and visits to Delhi, Jaipur and Bhilwara offices of the opposite party and also on account of harassment caused by the opposite party to the complainant. Upon reference being made, the opposite party filed its version on 29.7.92. The case set up by the opposite party is that it was agreed upon between the parties that as the Court case might take some time, 50% of the balance amount i. e. , Rs.2,92,964/- has been released to the complainant by way of loan on the condition that in case the goods lying in custody of the Union Bank of India at Ludhiana belongs to the subject matter of the claim, the complainant shall take delivery of the goods irrespective of the physical condition and on receipt of such delivery of the goods, the complainant shall refund to the Insurance Company within seven days of the judgment of the Court, the loan amount of Rs.2,92,965/- in proportion to the goods recovered and delivered to the complainant. The complainant has furnished an undertaking to this effect which is said to be Annexure 6. According to the opposite party, only a sum of Rs.2,92,965/- was to be paid to the complainant and the rest amount was to be paid after the decision of the Court case. Apart from that, the opposite party also raised objection relating to limitation and pecuniary jurisdiction of the State Commission.