BAL KRISHAN GUPTA Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) THIS revision is directed against the order dated 22. 3. 2006 passed by the State Commission in Appeal Nos. 1203/2005 and 1241/2005. In the impugned order State Commission has partly allowed the appeal filed by the Insurance Company inasmuch as it has reduced the amount of payment under the Insurance Policy from Rs. 84,000 to Rs. 55,000 and disallowed the compensation of Rs. 10,000 as awarded by the District Forum.

(2.) WE have heard the learned Counsel for the parties. The say of the petitioner is that the State Commission has reduced amount of compensation without any basis and for unjustifiable reasons more particularly so when the terms and conditions of the policy provided that insured was entitled to 100% value in case of total loss. The facts are not in dispute. Car of the petitioner was insured for a sum of Rs. 84,000. His car was stolen and traced somewhere in the jurisdiction of Ludhiana, Punjab where from it was not taken on Superdari by the petitioner on the ground that important components of the car had been removed and the salvage which was left was of no value. District Forum on consideration of facts and circumstances allowed the claim of the petitioner in full and besides directed the Insurance Company to pay compensation of Rs. 10,000.

(3.) AGGRIEVED by the said order the complainant and Insurance Company filed appeals before the State Commission. Insurance Company pleaded for setting aside the order passed by the District Forum and the complainant praying for grant of interest as well in addition to the reliefs already granted to him. The State Commission on a consideration of the material but without giving any justification had reduced the amount of claim from Rs. 84,000 to Rs. 55,000 as consolidated amount of compensation. In our opinion in absence of any cogent reason given by the State Commission, the order of the State Commission reducing the amount of compensation cannot be upheld. Now what should be the amount of compensation is the question which we must consider. Having regard to the totality of the facts and circumstances of the case and the terms and conditions of the Insurance policy, we are of the view that it would adequately meet the ends of justice if the Insurance Company is allowed to make a deduction of 10% as depreciation for about one year period during which car was insured and was stolen and to pay the remaining amount i. e. , Rs. 84,000 Rs. 8,400 = Rs. 75,600 along with cost of litigation of Rs. 10,000. Revision is disposed of accordingly in the above terms. The petitioner has already received the amount awarded by the State Commission and the balance amount in terms of this order shall be paid by the Insurance Company within four weeks from today. Revision Petition disposed of.