UNITED INDIA INSURANCE CO LTD Vs. CHOUODHRY TOBOCCO

JUDGEMENT

(1.) Three firms namely Choudhry Tobacco, owned by Swarna Chenchiah, Sudha Enterprises, a partnership firm with Sri Chidipotho Subha Rao, as its Managing Partners and Kowmudi Tobacco owned by Smt. Kommalapati Subbamma and Smt. Kommalapati Akamma at the time of the alleged incident of fire, had obtained separate insurance policies from United India Insurance Co. Ltd. with respect to the tobacco stated to have been stored in godown owned by one Kandukuri Venkaiah. The case of the complainants / respondents is that in the night intervening 14/15.9.2002, the godown in which tobacco had been stored caught fire, reducing the entire stock of tobacco to ash. On intimation being given to the insurer a surveyor was appointed, followed by the appointment of an investigator. A police case was also registered on the allegation that the incident of fire was a willful act of the proprietors / partners of the aforesaid firms. The claim however, was repudiated by the insurer vide identical letters dated 23.2.2004, which to the extent it is relevant read as under:

(2.) Being aggrieved from the repudiation of the claim, M/s. Choudhry Tobbaco approached the concerned District Forum by way of a consumer complaint whereas, Mrs. Kommalapati Subbamma and Ors., owners of Kowmudi Tobacco and M/s. Sudha Enterprises approached the concerned State Commission by way of separate consumer complaints.

(3.) Vide its order dated 21.4.2005, passed in the consumer complaint of Choudhary Tobacco, the District Forum directed to insurer to pay a sum of Rs.9,43,000/- to the complainant along with interest @ 9% per annum, compensation quantified at Rs.20,000/- and the cost of litigation quantified at Rs.1,000/-. Being aggrieved from the order passed by the District Forum, the insurer approached the concerned State Commission by way of an appeal, being FA No. 720 of 2005.