GLORIOUS PLASTICS LTD Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) Heard the learned Counsel for the parties.

(2.) The insured M/s. Glorious Plastics Ltd. has filed the complaint against National Insurance Company Ltd. for reimbursement of a sum of Rs. 80 Lakh for the loss suffered by it and for a sum of Rs. 16,80,000 towards interest lost as on 18th August, 1989. It is not disputed that the complainants have insured their assets consisting of tools, machinery, accessories and stocks for the period from 31st July, 1995 to 30th July, 1996. On 4th August, 1995 a major fire broke out at the garment factory situated on the first floor of the building which consisted of ground floor and one storey. For extinguishing fire on the floor of the building where the garment factory was, the Fire Brigade spread water continuously, but before the fire could be controlled, the roof of the building consisting of steel trusses, purlin's and A.C.Sheets was substantially damaged and the entire first floor was exposed to open sky unprotected. On the ground floor, complainant was manufacturing industrial components and audio cassettes by injection moulding process. Due to excessive use of water, the flooring of the first floor was also damaged leading to seepage and leakage of water on the ground floor factory of the complainants. At the relevant time, the factory compound was already surrounded by water accumulated due to excessive rain. This prevented the Fire Brigade from draining out the water, as a result of which the entire machinery, tools and accessories of the complainants factory remained submerged under water.

(3.) On the basis of the claim, on 8th August, 1995 Surveyors from M/s. R.N. Thacker and Company visited the site. He inspected the premises, confirmed the incident, obtained the details of insurance and made inquiries regarding the loss suffered by the complainants.