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M/S. Bassan and Bassan Garments Vs. Oriental Insurance Company Limited - Court Judgment

SooperKanoon Citation

Court

Union Territory Consumer Disputes Redressal Commission UT Chandigarh

Decided On

Case Number

Appeal Case No. 44 of 1999

Judge

Appellant

M/S. Bassan and Bassan Garments

Respondent

Oriental Insurance Company Limited

Excerpt:


consumer protection act, 1986 - section 15 - comparative citations: 1999 (1) cpc 4, 1999 (2) cpj 613.....and in genuine. ultimately the respondent insurance company repudiated the claims of the complainant on 21.10.1993. it is not disputed that the policies were valid and issued in favour of delhi financial corporation. the objection raised on behalf of the respondent that the case is bad for non- joinder of delhi financial corporation being the necessary party and the complainant committed a breach of good faith, is apparent. a perusal of the facts given above shows that the respondent insurance company thoroughly investigated the matter and there was no deficiency on its part. as a conclusion thereof the respondent insurance company has rightly repudiated the claims of the complainant-appellant and the district forum-ii has rightly dismissed the complaint. the appeal is dismissed with the modification that imposition of costs on the appellant by the district forum is hereby set-aside.

Judgment:


Col. P.K. Vasudeva, Member:

1. The complainant M/s. Bassan and Bassan Garments is engaged in the business of preparing ready- made garments with the financial assistance of Delhi Financial Corporation. They lost property worth Rs. 45,845/- and Rs. 1,19,389.20 in an alleged burglary taken place on the intervening night of 19th/20th November, 1991 at his premises in Village Boterla. His machineries, furniture, fixtures etc. were got insured with the respondent Oriental Insurance Company through Delhi Financial Corporation by obtaining two policies, one against burglary and the other in respect of shop insurance. These policies were valid upto 16.7.1992. On institution of a complaint the District Forum-II dismissed it on 19.1.1999 with costs of Rs. 1,100/-. Aggrieved against it the present appeal has been attempted by the appellant/complainant.

2. Briefly the complainant was running a business of readymade garments at Village Boterla, Union Territory, Chandigarh after obtaining loan from Delhi Financial Corporation. The complainant-appellant got it insured by obtaining Policy No. 23115/46/00046/92 and No. 23115/11/00234/92 against the burglary in respect of stock lying in the shop respectively and these were valid upto 16.7.1992. Since the complainant took loan from the Delhi Financial Corporation, the policies were issued in favour of Delhi Financial Corporation A/c M/s. Bassan and Bassan Garments. As alleged by the complainant during the intervening night of 19 / 20.11.1991 a theft took place in the premises of the complainant and he lodged F.I.R. No. 168 dated 20.11.1991 at Police Station Sector 39, Chandigarh and also filed a claim with the respondent Insurance Company. The police investigated the matter but could not find much and hence issued “untraced report”. On receiving the claim put forward by the complainant, the respondent Insurance Company deputed Shri Ashok Agarwal, Chartered Accountant as Surveyor for assessing the loss suffered by the complainant. When the complainant did not cooperate with the Surveyor in producing the relevant record, he submitted his report to the Insurance Company with the recommendation that the total loss was of Rs. 1,32,342.94 but as per the terms and conditions of the policies only a sum of Rs. 14,065.94 is payable to the insured. He also recommended that before sanctioning the claim, the whole case may be technically investigated. Para 14 of the report is reproduced as under:

“14. Recommendations

I have assessed the loss of Rs. 1,13,342.94/- to the best of my knowledge and explanations given to me during my visit to the shop of insured and from the documents/reports produced before me. However, if Insurance Company deems fit, the case may be technically investigated before sanctioning the claim. As there are number of irregularities in the records and documents produced by the insured. The suppliers records and Bank record also need investigation. After taking into consideration various terms and conditions and average clause the net claim of Rs. 14,065.94 is payable to the insured.”

3. On receipt of the report of the Surveyor the respondent Insurance Company deputed Shri S.S. Bajwa, a former retired Superintendent of Police, as a private investigator to investigate the matter and he submitted his report on 27.3.1993 with the finding that the theft took place on 18/19.11.1991 instead of 19/20.11.1991 and the bills produced by the complainant were fake and in genuine. Ultimately the respondent Insurance Company repudiated the claims of the complainant on 21.10.1993.

It is not disputed that the policies were valid and issued in favour of Delhi Financial Corporation. The objection raised on behalf of the respondent that the case is bad for non- joinder of Delhi Financial Corporation being the necessary party and the complainant committed a breach of good faith, is apparent. A perusal of the facts given above shows that the respondent Insurance Company thoroughly investigated the matter and there was no deficiency on its part. As a conclusion thereof the respondent Insurance Company has rightly repudiated the claims of the complainant-appellant and the District Forum-II has rightly dismissed the complaint. The appeal is dismissed with the modification that imposition of costs on the appellant by the District Forum is hereby set-aside.


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