UNITED INDIA INSURANCE CO LTD Vs. SHITAL INTERNATIONAL

JUDGEMENT

(1.) This F.A. No.167 of 2012 has been filed by the appellant-OP-United India Insurance Company Ltd. (hereinafter, 'OP') against the impugned order dated 21.11.2011 of the Punjab State Consumer Disputes Redressal Commission, Chandigarh (hereinafter, 'State Commission') passed in C.C. No.9 of 2008.

(2.) Briefly, the complaint under section 12 of the Consumer Protection Act, 1986 was filed by the respondent-M/s. Shital International (hereinafter, 'Complainant'), a proprietary concern incorporated in 1978, engaged in the business of manufacturing artificial fur lining, hosiery cloth/fabrics and allied products manufactured from fibers and yarn and thereafter exporting the finished products to destinations abroad. The primary raw materials used in manufacturing of the fabric are acrylic fiber, polyester fiber, yarn etc. The complainant company had insured its plant, machinery, accessories, electrical installations and stocks lying in the factory premises under a Standard Fire and Perils Policy, Extension of Earthquake (Fire and Shock) bearing policy no.201302/11/05/11/00000124 for the period from 31.08.2005 to midnight of 30.08.2006. Besides, factory premises had also been insured for a sum of Rs.35,00,000/- (Rupees Thirty Five Lakh only), plant and machinery for a sum of Rs.29,57,000/- (Rupees Twenty Nine Lakh Fifty Seven Thousand only) and furniture and fittings for Rs.10,00,000/- (Rupees Ten Lakh only) with National Insurance Company Ltd. vide policy No.401112/05/3100000584 for the period from 25.1.2006 to 24.1.2007. Thus, the plant/machinery and accessories were insured for a total sum of Rs.1,79,57,000/- (Rupees One Crore Seventy Nine Lakh Fifty Seven Thousand only) under the above mentioned two policies.

(3.) On 23.06.2006, a major fire broke out in the factory premises at 3.50 A.M.Despite efforts by two employees present, the intense fire spread rapidly.Fire Brigade was informed and fire tenders arrived immediately; fire tenders from Kapurthala and Hoshiarpur were also called.Finally, the fire was brought under control after almost five hours.The category of the fire was Class 'A' i.e. a major fire as per certificate of the Fire Department.Extensive damage was caused to the building, plant, machinery, fixtures, fittings and the stocks lying within the factory premises comprising mainly acrylic and polyester material, both highly combustible and therefore completely gutted.