PARAS INDUSTRIES Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) Heard the learned Counsel for the parties. In this matter, there is no dispute about the quantum of loss suffered by the petitioner. There is also no dispute about the insurance policy and the liability of the Insurance Company. In this matter, two Surveyors were appointed. According to the report of Shri Chetal, the first Surveyor, found 300 bags of rice. In the report he mentioned that 50% of the same was damaged and taking the value of Rs. 700 per quintal, he assessed 50% loss in 300 bags of rice to the tune of Rs. 1,05,000. The other Surveyor, Mr. Utkarsh Shingwekar, after segregation of the stock observed that only 19 quintals were damaged, as these were directly affected by rain and after verification of market value from the market, etc., took its value and assessed loss to the tune of Rs. 9,025 + Rs. 25,590 towards expenses incurred in drying, transportation, etc. But there is vast difference about the loss suffered in respect of the quantity of damaged rice in each bag. Mr. S.K. Chetal, first Surveyor, has taken loss of 50% and came to the conclusion that total loss was of Rs. 1,05,000. Shri Shingwekar in his report has assessed loss of only 19 quintals and taking the value of Rs. 475 per quintal, he has assessed loss to the tune of Rs. 9,025. The insured has claimed that the value of rice was Rs. 800 per quintal. The second Surveyor had not specified in his report as to how he did take samples of damaged stock to come to the conclusion that there was loss of only 19 quintals. Besides he had seen the stock after it would have dried to a certain extent, and may be intrinsically damaged and apparently only left a change of a shade or two in colour. In these circumstances, we accept the assessment made by Shri S.K. Chetal and hold that rice to the extent of 50% were damaged.

(2.) As regards market rate of damaged rice, Shri Shingwekar has assessed value of the rice @ Rs. 450 to 500. He has collected information from the market. Mr. Chetal had taken the value of the rice @ Rs. 700 per quintal. We think it would be appropriate and reasonable to accept market rate of rice arrived at by Shri Shingwekar at Rs. 500 per quintal. Calculating loss of rice of 150 quintal @ 500 per quintal the petitioner should be entitled to get Rs. 75,000 in addition to Rs. 25,590 as expenses assessed by Shri Shingwekar towards drying, transportation handling and rebagging, etc., 5% excess as per policy and less Rs. 500 as salvage i.e., in all Rs. 1,03,760.

(3.) There is some dispute about the rate of interest and seeing the circumstances, we feel that instead of awarding interest @ 12% per annum, 9% interest should be appropriate. Accordingly, the complainant shall be entitled to get interest @ 9% per annum from the date of complaint on a sum of Rs. 1,03,760. The revision petition is disposed of accordingly. The parties are left to bear their own cost. Revision Petition disposed of.