CTS INDUSTRIES LTD. S.B. TOWER, 3RD FLOOR, 37, SHAKESPEARS SARANI KOLKATA Vs. ORIENTAL INSURANCE COMPANY LTD. A 25/27 ASAF ALI ROAD NEW DELHI

JUDGEMENT

(1.) Aggrieved by the order in SC Case No. 39/0/2007 dated 31.03.2009, passed by the State Consumer Disputes Redressal Commission at West Bengal (for short "the State Commission "), the Complainant preferred this Appeal under Sec. 19 of the Consumer Protection Act, 1986 (for short "the Act "). By the impugned order, the State Commission dismissed the Complaint on the ground that the repudiation was justified as the damage was caused due to 'Rain' and there was no evidence of flood or inundation.

(2.) The brief facts stated in the Complaint are that the Complainant Company, involved in the activity of exporting iron ore fines, took lease of 4,500 sq.mtrs of land at Mangalore Port. To cover the various risks of such iron ore fines, stored in the port, AGL, which, under a Scheme of amalgamation, stood merged with the Complainant Company, took a Standard Fire & Special Perils Policy from the Opposite Party for the period 22.03.2004 to 21.03.2005 for a sum of 15.00 crores. It was averred that between Jan., 2004 to April, 2004, AGL procured materials from various mines and suppliers which were stored in the leased land at Mangalore Port. On 24.07.2000, AGL entered into an Agreement with China Metallurgical Import & Export Baogang Company for export of iron ore fines of Indian origin at a price of 41USD/MT. The loading of iron ore fines in the Ship started on 02.08.2004 and ended on 09.08.2004. During this period of loading of the said cargo, there were rains from time to time at Mangalore Port which interrupted the loading. It was pleaded that in the interim period between 31.07.2004 and 09.08.2004 and also thereafter, due to heavy rains, there were floods and the place where the stock of iron ore fines was lying, was inundated as a result of which, the stock was damaged and washed away.

(3.) On 18.08.2004, AGL intimated the Opposite Party about the damage and claimed that there was a loss of 6050 MTs of iron ore fines. It was stated that on 31.08.2004, after expiry of about nine days of reporting the matter to the Opposite Party, M/s. J.B. Boda Surveyors Pvt.Ltd., appointed by the Opposite Party, made a preliminary survey. Vide letter dated 20.09.2004, the Appellant Company submitted the relevant documents to the Surveyor indicating that 6050 MTs of stock was washed away due to rain and flood. Vide letter dated 23.09.2004 the Complainant again submitted further documents as required by the Surveyor. Despite repeated requests, as the claim was not settled, a letter was written on 15.12.2004 requesting the Surveyor to expedite the submission of the report. It was stated that on 01.04.2006, the Registered Office of AGL shifted to 37, Shakespeare Sarani, Kolkata - 700 017 and the same was informed to the Opposite Party.