IMPERIAL EXPORTS LTD Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) COMPLAINT was filed by Ruchi International Ltd., inter alia, alleging that it purchased Fire 'C' policy of Rs. 3.00 crores for three months commencing from 24.3.1998 for the stocks of Soya Deoiled Cake (for short DOC) stored at Galpadar Godown (Rishi Godown) and MMC Godown at Gandhi Dham, Kandla covering the additional perils of flood, storm and tempest, etc. from the opposite party -Insurance Co. Subsequently, stocks kept in Friends and Friends Godown and Adinath Godown was also covered by the policy. It was alleged that the stocks of Soya DOC stored at Galpadar and Friends & Friends Godowns were damaged on account of cyclone which hit Kandla on 9.6.1998. On being informed of damage, the opposite party appointed M/s. Keypsens, Delhi and M/s. Bhatt & Associate, Ahmedabad as Joint Surveyors to assess the loss. Joint Surveyors submitted their survey report dated 1.6.1999. Opposite party further appointed Suresh Kumar Keemati, Chartered Accountant to verify the records of the complainant. Insurance Co. appointed yet another Chartered Accountant, M/s. Raj Kumar Shah & Associate to verify the insurable interest of the complainant in the stock kept in Friends & Friends godown. Both these CAs submitted their reports to the Insurance Co. Opposite party failed to settle the claim despite letters and the service of notice dated 9.3.2001 by the complainant Company. It was prayed that opposite party may be directed to pay a sum of Rs. 166 lakhs with interest @ 18% p.a. from the date of submission of survey report and the cost.

(2.) OPPOSITE party - Insurance Co. contested the complaint by filing written version. Since the dispute between the parties centers around the adjustments made in joint survey report dated 1.6.1999, we only need to notice that in written version, the Insurance Co. does not dispute the purchase of the policy by the complainant, cyclone having caused damage to the stocks of Soya DOC at Galpadar and Friends and Friends Godowns, appointments of M/s. Keypsens and M/s. Bhatt and Associate as joint Surveyors, Suresh Kumar Keemati and M/s. Raj Kumar Shah and Associate, C.A. and submitting of reports by them. K.C. Khanna and Co. was also alleged to have been appointed to investigate the claim specially in the context of insurable interest in the stock of Soya DOC at Friends and Friends Godown and the complainant not having co -operated with K.C. Khanna and Company. It was stated that Joint Surveyors assessed the loss at Rs. 79,00,962.

(3.) ASSESSMENT of loss of materials in two godowns as made by M/s. Keypsens and M/s. Bhatt and Associate in their joint survey report dated 1.6.1999 which is material, runs as follows: "Assessment of loss for Godown situated at Galpadar, Gandhidham Value of Stock - 3,576. 445 M. Tons At Rs. 6,500 per M. Tons : Rs. 2,32,46,892.50 Less : Sound (i) 1,691 M Tons x 6,500 Rs. 1,09,91.500 00 (ii) 59.02 M. Tons x 6,500 (segregated at Indore) Rs. 3,83,630 00 Rs. 1,13,75,130.00 Rs. 1,13,75,130.00 Rs. 1,18,71,762.50 Salvage for damaged goods as segregated at Gandhidham (i) For totally damaged goods (796.500 M. Ton x Rs. 600) Rs. 4,77,900.00 (ii) For partly damaged goods (685.450 M. Ton x Rs. 2,300) Rs. 15,76,535.00 Rs. 20,54,435.00 Rs. 20,54,435.00 Rs. 98,17,327.50 Salvage realizable from Indore for partially damaged goods (i) 182.475 M Tons x Rs. 2300 Rs. 4,19,692.50 (ii) 162.00 M Tons x Rs. 2,300 Rs. 3.72.600.00 Rs. 7,92,292.50 Rs. 7,92,292.50 Assessed Loss for material : Rs. 90,25,035.00 Add (i) Segregation Expenses at Galpadar 3576 M.T. : x Rs. 275 (Gandhidham) Rs. 9,83,400.00 (ii) Segregation Expenses at Indore 397.00 x Rs. 170 (Indore) : Rs. 67,490.00 Total : Rs. 1,00,75,925.00