MD. AHSAN RESIDENT OF GULZAR POKHAR, PROPRIETOR OF M/S S. ELECTRONICS GULZAR POKHAR, DISTRICT/TOWN Vs. NATIONAL INSURANCE COMPANY LIMITED AND OTHERS BARA BAZAR, MUNGER THROUGH BRANCH MANAGER

JUDGEMENT

(1.) This revision petition has been filed under section 21(b) of the Consumer Protection Act, 1986, against the impugned order dated 22.11.2007, passed by the Bihar State Consumer Disputes Redressal Commission, Patna (hereinafter referred to as the State Commission ) in First Appeal No. 162/2006, Branch Manager, National Insurance Co. Ltd. Vs. Md. Ahsan , vide which, while partly accepting the appeal filed by the OP Insurance Company, the order dated 19.01.2006, passed by the District Consumer Disputes Redressal Forum, Munger in Consumer Complaint No. 11/2004, filed by the present petitioner, allowing the said complaint, was modified.

(2.) The facts of the case are that the petitioner/complainant is proprietor of a business concern, M/s. S. Electronics situated at Gulzar Pokhar, Munger and the said shop was insured under the shopkeeper insurance policy with the opposite party (OP) National Insurance Co. Ltd. for the period 31.07.2000 to 30.07.2001, for a sum of Rs. 8 lakhs on stocks of electric goods. The said shop is hypothecated to the Union Bank of India for a cash credit limit of Rs. 5 lakhs. It is stated that a fire broke out at the shop premises in the intervening night of 18 & 19.04.2001, as a result of which, the entire stocks of goods and articles placed in the shop along with furniture and fittings were completely destroyed. An intimation of the incident was given to the local police on the very next day i.e. 19.04.2001 as per S.D. entry no. 456/2001. The Insurance Company was also informed about the incident under the receipt dated 19.04.2001. It is alleged that the fire broke out due to short electric circuit. The Insurance Company appointed a surveyor R.K. Dumrewala to conduct preliminary survey. The said surveyor visited the effected premises on 21.04.2001 and held inquiries on the spot and collected details about the incident. Ultimately, he submitted his report dated 11.12.2001 and assessed the loss as Rs. 2,50,000.00. However, the Insurance Company appointed a second surveyor H.L. Sah, Chartered Accountant for doing the survey and assess the loss. The said surveyor demanded cash book, ledger, income tax return, trading and profit and loss account and also the balance sheet from the insured. He submitted his report on 05.10.2001, stating that the liability of the Insurance Company on account of the loss to the complainant was Rs. 3,84,905.00. The complainant has alleged that the Insurance Company did not settle the claim despite contacting them time and again. Ultimately, the complainant received letter dated 27.11.2003 from the Union Bank of India, informing him that the claim had been settled by the Insurance Company for Rs. 2.5 lakhs. The complainant filed the consumer complaint in question, seeking directions to the OP Insurance Company to pay a sum of Rs. 7 lakhs to him for loss in stocks; compensation of Rs. 1 lakh for deficiency in service and Rs. 10,000.00 as cost of litigation along with interest @ 18% p.a. on the sum of Rs. 7 lakhs from the date of payment till realisation.

(3.) The complaint was resisted by the OP Insurance Company by filing a written statement before the District Forum, in which they stated that the complainant had failed to produce any documents showing the stocks of material. They denied that there was any stock worth Rs. 7 lakhs and hence, there was no deficiency on the part of the Insurance Company in handling the grant of claim.