NATIONAL INSURANCE CO. LTD. Vs. SHILPA CLOTH HOUSE

JUDGEMENT

(1.) Challenge in this revision petition is to the order dated 28.07.2011 passed by U.P. Consumer Disputes Redressal Commission, Lucknow in Appeal No.672/2009 whereby the State Commission has partly allowed the appeal filed by the petitioner against order dated 25.02.2009 passed by the District Forum, Meerut in Complaint No. 135/2007. Petitioner insurance company was the Opposite Party before the District Forum and the respondent firm was the Complainant.

(2.) The facts of this case which are relevant for its disposal are that the complainant firm was doing retail business of sale of cloth such as Suiting Cloth, Sarees, Pants, Shirting etc. at Modipuram. The complainant firm got its shop insured with the petitioner insurance company for Fire, Burglary, Theft and for carrying Cash. At the time of getting the insurance with the petitioner, the shop was got surveyed by the complainant for which, as per the case set up by the complainant, the employees of respondent came to the shop and after verification the shop and the stock available at the shop were insured for a value of Rs. 10,25,000/- for which a premium of Rs. 5,299/- was paid by the complainant/respondent for the cover period from 23.11.2006 to 22.11.2007. A fire took place on 09.02.2007 in the shop in question and stock of Rs. 11,50,000/- was in the shop at that time. As per the complainant, all the cloth stock including the documents, i.e. all registers and bills were burnt in the fire. The respondent/complainant immediately informed the petitioner/OP about the incident and a report was also lodged with the local Police Station. In spite of some personal visits by the complainant, when there was no response from the Petitioner/OP, the complainant sent intimation in writing to the petitioner insurance company on 22.02.2007. Thereafter, a surveyor was deputed and inspection was carried out. According to the complainant, the firm was promised payment of Rs. 10,25,000/- by way of compensation. However, the complainant did not receive the amount of compensation. It served alleged notice dated 15.03.2007 on the OP/petitioner to which also there was no reply. Alleging this as deficiency in service, the consumer complaint in question came to be filed with the District Forum.

(3.) The complainant submitted before the District Forum that the business got closed on account of burning of the stock of goods, register etc. in fire and since it had not been paid the amount of the claim, the proprietor of the complainant firm had lost the means of his livelihood leading to ruination. The prayer of the complainant firm was for payment of Rs. 10,25,000/- on account of loss in fire, Rs. 50,000/- compensation for mental harassment and Rs. 10,000/- by way of cost of litigation.