ELLORA PAPER MILLS LTD Vs. DIVISIONAL MANAGER

JUDGEMENT

(1.) THE Complainant M/s. Ellora Paper Mills Ltd.. took Fire Insurance Policies from opposite party, M/s. New India Assurance Company Ltd. for covering the risks against fire to its plant, machinery and building for a total value of Rs.18,34,12,117/- vide policy No.11/150602-04855/930/95 for the period from 6.1.1995 to 5.1.1996 and for the risk against stock of waste paper, pulp, cotton, linters, gunny bags, etc. for Rs.1,50,00,000/- vide policy No.11/150602-4813/930/95 for the period from 10.1.95 to 10.1.96 respectively. After the premises were inspected by the approved surveyor of the opposite party premium payable was fixed accordingly and the Complainant paid the requisite premium of Rs.4,71,092/- for insurance of plant and machinery and an amount of Rs.1,07,730/- for the insurance of stock of waste paper, pulp, cotton, linters, etc. to the opposite party.

(2.) IT is stated by the Complainant that on 28.3.1995 at around 9.50 p.m. fire broke out at their factory premises causing heavy loss to the plant, machinery and building of the factory at Dewada-Khurd near Tumsar. The Complainant gave intimation of the occurrence of fire to the Fire Brigade Department, the Police, the Gram Panchayat and to the office of the opposite party on 29.3.1995. After a couple of days, i.e. on 1.4.1995 again a fire broke out at the insured premises of the Complainant"s works and caused damages to the insured property. Once again the Complainant intimated to the opposite party as well as other concerned authorities.

(3.) THE opposite party withheld sanction for the remaining amount of Rs.8,45,665/-, though it was recommended for sanction by the Surveyor. Further, the opposite party raised another objection, saying that it had inadvertently made a short recovery of the premium for the year 1995-1996 by an amount of Rs.1,73,044/-. The opposite party proposed to deduct this amount from Rs.19,32,919/-, and offered to pay an amount of Rs.17,58,875/- only towards the claim for the loss resulting from the first fire. Thus, to put it shortly, the opposite party no where agreed in writing on 19.6.1995 to settle the claim at Rs.27,49,065/-, reduced it ultimately to Rs.17,58,875/-. The Complainant, refused to accept the amount. Hence, the complaint was filed. This Commission, by the interim order dated 22.10.2003 directed the opposite party to pay agreed amount of Rs.17,58,875/- as it was undisputedly payable by them. Accordingly, opposite party paid this amount in November, 2003.