NATIONAL INSURANCE CO LTD Vs. VENKATESHWARA TRADERS

JUDGEMENT

(1.) AGGRIEVED by the Order dated 31. 08. 2004 passed by the A. P. State Consumer Disputes Redressal Commission (hereinafter referred to as the State Commission for short) in Appeal No. 214 of 2002, Opposite Party No. 1-National Insurance Company Limited-petitioner herein, has filed this Revision Petition. By the impugned Order, the State Commission has affirmed the Order passed by the District Consumer Disputes Redressal Forum, Nellore (hereinafter referred to as the District Forum for short ).

(2.) IN short, the facts of the case are: -Complainant-respondent no. 1 (hereinafter referred to as Complainant for short) is doing business in paddy, rice, bran broken and packing material under the name and style of Sri Venkateswara Traders. Complainant took M/s Shaffi Raw and Boiled Rice Mill on lease for milling of paddy. The Complainant had taken loan from Opposite Party No. 2 by hypothecating the paddy stock. He got the paddy stock and other materials insured for a sum of Rs. 30,00,000/- under Policy No. 1999/3100913 through Opposite Party No. 2. The Policy was in operation from 29. 03. 2000 to 28. 03. 2001.

(3.) ON 10. 03. 2001, when the Complainant was processing paddy in the above said M/s Shaffi Raw and Boiled Rice Mill, all of a sudden, the boiler of the said mill stopped working and the paddy that was in the boiler was damaged and became unfit for consumption. Damage to the paddy was valued at Rs. 4,00,000/ -. Complainant informed the said incident and the damage caused to the petitioner as well as to Opposite Party No. 2 and requested them to inspect the material and pay compensation. Petitioner inspected the said premises and the damaged paddy on 12. 03. 2001 and sent a letter to the Complainant repudiating the claim. Complainant, thereafter, filed a complaint before the District Forum seeking appropriate relief.