ASSOCIATED BULK MOVERS Vs. RELIANCE INDUSTRIES LTD

JUDGEMENT

(1.) APPELLANT was the opposite party before the State Commission where the respondents/complainants M/s. Reliance Industries Ltd. and the Oriental Insurance Company have filed a complaint alleging deficiency in service on the part of the appellant Associated Bulk Movers.

(2.) VERY briefly the facts of the case are that M/s. Reliance Industries entrusted a consignment of over 13 M/s of Linear Alkyl Benzene (LAB) from its Unit at Patalganga to Chhindwara (M.P.) to be transported by the appellant Associated Bulk Movers. The said consignment was lost during transit on 29.9.94 and the appellant according to the complainant admitted non-delivery of the entire consignment and a certificate to this effect was also issued on 29.10.1994. Since the goods were also insured, the matter was reported to the Insurance Company, who assessed the loss at Rs. 6,43,434. This amount was paid by the Insurance Company to the Reliance Industries Ltd. after execution of letter of subrogation and special power of attorney in its favour. It is in these circumstances, a complaint was filed by Reliance Industries Ltd. jointly with Oriental Insurance Company against the Associated Bulk Movers before the State Commission who after hearing the parties directed the appellant transporter to pay Rs. 6,43,434 along with interest @ 18% p.a. to the Insurance Company as also cost of Rs. 30,000. Aggrieved by this order, this appeal was filed before us.

(3.) AFTER hearing the learned Counsel for the respondents, we are clearly of the view that matter is squarely covered by the judgement of the Hon'ble Supreme Court in the case of Oberai Forwarding Agency v. New India Insurance Company, II (2000) SLT 862=1 (2000) CPJ 7 (SC)=2000(2) SCC 407. There is no dispute that in the present case also a letter of 'assignment' as well as letter of 'subrogation' and general power of attorney has been executed by the first respondent in favour of the second respondent Insurance Company. The Hon'ble Supreme Court had occasion to deal with this question in the judgment (supra) where after going through extensively into the meaning of 'Subrogation' and 'Assignment' the Hon'ble Supreme Court has held that Insurance Company cannot be a 'consumer' within the meaning of Consumer Protection Act for he had not hired the services. There is no disputing the fact that in the 'letter of subrogation' and 'general power of attorney' the word 'assignment' and 'subrogation' clearly appear, hence in these circumstances, this case stands fully covered by the judgement (supra) of the Hon'ble Supreme Court.