M/S LAXMIPATI BALAJI SUGAR & DISTILLERIES (P) LTD. Vs. SR. BRANCH MANAGER, UNITED INDIA INSURANCE CO. LTD. & ANR.

JUDGEMENT

(1.) The complainant company is engaged in the production and supply of sugar in Orissa and had obtained an insurance policy from the opposite party namely United India Insurance Co. Ltd. , with respect to the stock of sugar kept in its factory in Bhubaneswar in Orissa. The case of the complainant is that its factory, godown and molasses tanker were heavily damaged due to super cyclone Phalin, between 12. 10. 201 to 15. 10. 2013, damaging sugar worth Rs. 3,60,00,000/- besides other properties worth Rs. 30,00,000/-. This is also the case of the complainant that the cyclone was followed by heavy rain for ten days which resulted in further damage to the goods and properties of the complainant. Consequently, the loss of the complainant increased to Rs. 10. 01 crore. Though a surveyor was appointed to inspect the factory and assess the loss to the complainant, the claim was repudiated vide letter dated 3 3. 2014 which to the extent it is relevant reads as under:

(2.) The complaint has been resisted by the insurer which has inter-alia pleaded that the claim was thoroughly examined by the insurer but the same was not payable. It is further stated in the written version that there was no activity in the factory which was lying dormant and the stocks kept in the godown were old and had deteriorated with the passage of time. It is also alleged that the loss was not attributable to cyclone or the rains. It is also alleged in the written version that there was no damage to the roof or the godown shed and there was no possibility of any loss as alleged by the complainant. It is further alleged that the complainant was not able to utilize or dispose of the stock which suffered gradual deterioration over a period of time.

(3.) The report of the surveyor M/s. SNM Consultants to the extent it appears to be relevant reads as under: