(1.) This is the case of extensive damage to the building, machinery and the stock of a textile unit in an accidental fire, in which though the surveyor had requested the insurer to give consent for the loss assessed by him to the tune of Rs. 3,00,524, the Insurance Company had repudiated the claim.
(2.) Complainant, Koyal Textiles, is a reputed proprietary concern of Mr. Dhanjibhai Muljibhai Patel. The complainant had taken an insurance policy against fire accident in the year 1999-2000 for a total amount of Rs. 42,00,000 covering of Rs. 7,00,000 for the building, Rs. 5,00,000 for the machinery and Rs. 30,00,000 for the stock, stock in process and raw materials.
(3.) On 18.7.1999, the factory was damaged by an accidental fire, when there was heavy rain in and around the complainant's factory. The police Panchnama was conducted by the Amraiwadi Police. The Panchnama notes extensive damage caused to the factory building. They have given a detailed description of burnt and half burnt polyester yarn and other stocks. According to the Panchnama, the reason for the fire was short circuit due to torrential rain. The estimated loss was to the tune of Rs. 29,00,000.