HARYANA HOUSING BOARD Vs. RAJ MAL

JUDGEMENT

(1.) The case of the complainant is that it was engaged in business of manufacturing and trading of menthol and allied products for the last three years and for the year 1999-2000 the plant and machinery was insured for a sum of Rs. 3,25,000 and stock of menthol for Rs. 16 lakh. Keeping in view the regular increase in prices of menthol and highly inflammable nature of menthol, the complainant enhanced the secured insurance cover for the stock for Rs. 35,25,000 on 16/8/1999. The price of menthol was Rs. 1,100 per kg. The stock available was 2950 kg. making a total value of Rs. 32,45,000.

(2.) On 23rd/24th October, 1999 at about 1.00 a.m. the factory premises caught fire due to short circuit which was controlled by the Fire Brigade after two hours. Immediately, thereafter the complainant informed the Insurance Company and their banker about the said fire. The complainant also submitted a claim under the following heads : <FRM>KT_253_CPJ1_2007.htm</FRM>

(3.) Despite appointment of surveyor and continuous correspondence the claim was not accepted and the Insurance Company issued repudiation letter on 2/5/2000. The complainant filed a complaint before the National Commission for award of Rs. 26,59,099 with interest @ 24% per annum till realisation and also compensation for harassment and business loss to the tune of Rs. 5.00 lakh. Submissions of the learned Counsel for the complainant :