Nayak Mills Vs. National Insurance Co. Ltd. Samastipur and Another - Court Judgment

SooperKanoon Citationsooperkanoon.com/1113575
CourtBihar State Consumer Disputes Redressal Commission SCDRC Patna
Decided OnMar-09-1999
Case NumberAppeal Nos. 453 & 472 of 1995
JudgeA.N. CHATURVEDI, PRESIDENT & THE HONOURABLE MR. V.N. MISHRA, MEMBER
AppellantNayak Mills
RespondentNational Insurance Co. Ltd. Samastipur and Another
Excerpt:
consumer protection act, 1986 - section 15 - result: appeals disposed of. comparative citation: 2000 (2) cpj 371a.n. chaturvedi, president: 1. both the appeals are directed against the order dated 19.5.1995 passed by district forum, samastipur in complaint case no. 16 of 1995 and hence are being disposed of by this common judgment. appeal no. 453/95 has been filed by naik mills through its proprietor arjun prasad naik who was complainant before the district forum in the said case no. 16 of 1995. appeal no. 472/95 has been filed by national insurance company ltd. (opposite party before the district forum) having branch office at samastipur and divisional office at muzaffarpur through its deputy manager of regional office at patna. by the impugned order the district forum has directed the national insurance company to pay rs. 1,14,500/- to the complainant as insurance claim within one month with rs. 100/- as cost. the said complainant has filed the said appeal no. 453/95 for correcting the said amount of rs. 1,14,500/- as 1,30,500/- and allowing him rs. 20,000/- as compensation for the damage caused to the machine, rs. 35,000/- as compensation for avoidance on the part of the insurance company in settlement of the insurance claim and rs. 5,000/- as cost of the case. besides that there is also prayer for cost of appeal no. 453/95. on the other hand the national insurance company has filed the said appeal no. 472/95 for setting aside the impugned order. 2. the case of the complainant (appellant in appeal no. 453/95) before the district forum was that naik mills had been insured by the national insurance company for rs. 1,50,000/- for the period 6.2.1994 to 5.2.1995 under insurance policy nos. 7504855/94 and 3104023/94. in between the night of 7th and 8th april, 1994 there was incident of fire in the mill. fire brigade was informed and the fire was extinguished with the help of the fire brigade. the police and the insurance company were informed about the incident of fire and insurance claim was preferred. the insurance company appointed a surveyor who submitted his report but his claim was not settled which led to the filing of complaint case before the district forum. in the complaint petition damage to granules of tobacco stem, crusher machine and building shown as rs. 1,45,000/-, rs. 20,000/-, and rs. 40,000/- respectively but the insurance claim was confined to rs. 1,50,000/- only. besides this, rs. 35,000/- was claimed as compensation. interest at the rate of 24% over the insurance claim of rs. 1,50,000/- was also claimed. 3. written statement was filed on behalf of the opposite party-insurance company before the district forum and the case was contested. the case of the opposite party was that the complainant had got no cause of action and the right to file the case as the insured was state bank of india, dalsinghsarai branch and it is the said bank which is competent to lodge any claim and to receive compensation, if any, payable under the terms of the policy. the mill was not running regularly and was in the stage of winding up. the proprietor of the mill under a deliberate planning manufactured the entire fire panorama to grab money from the insurance company and to digest the bank loan. the surveyor who visited the spot had reported that at most the insured articles worth rs. 25,800/- had been damaged and destroyed. the building had not been insured but a false claim has been advanced with regard to damage to the building. the complainant was required to provide the position of stock and other details but he failed to do so till 24.8.1995 which goes to show that bogus and fictitious details have been provided after inordinate delay. the claim of the complainant was in the process of re-assessment on his request and the office of the insurance company and the duly authorised surveyor of government of india was waiting for the papers on the basis of which re-assessment could be done but the complainant did not provide the papers and keeping the office of the company and surveyor in dark filed the complaint case stealthly and under the circumstances there was no deficiency in service on the part of the insurance company. on the allegations aforesaid the insurance company (opposite party) had prayed for dismissal of the case. 4. now it has to be considered if the impugned order requires modification as prayed for in appeal no. 453/95 or is fit to be set aside as prayed for in appeal no. 472/95. 5. from the insurance papers brought on the record of the district forum it appears that the insurance was against burglary and fire which covered risk concerning tobacco leaf, tobacco dust and machine equipments. for deciding the insurance claim concerning tobacco, the district forum has relied solely on cash credit account dated 31.3.1994 said to have been submitted by the complainant to the state bank of india. in the cash credit account the total stock has been shown as 40,000 kg. worth rs. 1,45,000/-. besides other papers, the complainant had filed before the district forum photo-copy of the stock register for the year 1993-94. the stock as shown on 31.3.1994 in the photo-copy of the stock register differs from the position of the stock as shown in the cash credit account dated 31.3.1994 but the district forum has neither considered the same nor has assigned any reason for ignoring the same. the insurance claim also concerned damage to crusher machine and on this count rs. 20,000/- had been claimed. strangely enough the district forum has not considered at all this aspect of the insurance claim. besides the insurance claim of rs. 1,50,000/-, the complainant in his complaint petition had also claimed rs. 35,000/- as compensation and interest at the rate of 24% over the insurance claim of rs. 1,50,000/- but the district forum has not considered the same also. 6. it is the specific case of insurance company in the written statement filed before the district forum that the insured was state bank of india and hence the complainant had neither cause of action nor right to file the complaint case. in the insurance papers the state bank of india, dalsinghsarai has been shown as insured a/c nayak mills. the district forum has not considered the plea of the insurance company to the said effect. in view of the above facts, the state bank of india, dalsinghsarai branch, was a necessary party to the case but has not been impleaded as a party to the case. the complainant had filed several documents as per list before the district forum. except the cash credit account, the other documents have not been considered by the district forum. in the written statement filed before the district forum the insurance company had pleaded that the surveyor who visited the spot had reported that at most the insured articles worth rs. 25,800/- had been damaged and destroyed and on the request of the complainant his claim was in the process of re-assessment and the office of the insurance company and the duly authorised surveyor of the government of india was waiting for the papers on the basis of which re-assessment could be done but the complainant who had been required to provide the position of stock and other details, instead of providing the papers filed the complaint before the district forum. the plea to the aforesaid effect goes to show that the insurance company was willing to re-assess the claim of the complainant provided he made available to the company the papers showing position of stock and other details. 7. in view of what has been pointed out above, this case is fit to be remanded back to the district forum for a fresh decision in accordance with law and hence it would not be proper to go into the merits of the cases of the parties. accordingly the impugned order dated 19.5.1995 is hereby set aside and the matter is remitted back to the district forum for a fresh decision in accordance with law. in case the insurance company shows its willingness before the district forum to consider the claim of the complainant, the district forum will give an opportunity to the complainant to make available the relevant papers to the insurance company and the insurance company will be given reasonable time to consider the same. the insurance company will also be given an opportunity to bring on record the report of the surveyor who had been to the spot to assess the damage. the district forum will also give an opportunity to the complainant to implead state bank of india, dalsinghsarai, as party to the case. in case of failure of the complainant in making the relevant papers available to the insurance company or the failure of the insurance company in considering the claim of the complainant within reasonable period fixed by the district forum, the district forum will give an opportunity of hearing to the parties and dispose of the case on merit in accordance with law. both the appeals are disposed of accordingly. under the circumstances of the case there will be no order as to cost. 8. let the record of the district forum alongwith a copy of this order be sent to the district forum so that the hearing of the case may be expedited. copy of this order be sent to both the parties also. appeals disposed of.
Judgment:

A.N. Chaturvedi, President:

1. Both the appeals are directed against the order dated 19.5.1995 passed by District Forum, Samastipur in Complaint Case No. 16 of 1995 and hence are being disposed of by this common judgment. Appeal No. 453/95 has been filed by Naik Mills through its proprietor Arjun Prasad Naik who was complainant before the District Forum in the said Case No. 16 of 1995. Appeal No. 472/95 has been filed by National Insurance Company Ltd. (opposite party before the District Forum) having Branch Office at Samastipur and Divisional Office at Muzaffarpur through its Deputy Manager of Regional Office at Patna. By the impugned order the District Forum has directed the National Insurance Company to pay Rs. 1,14,500/- to the complainant as insurance claim within one month with Rs. 100/- as cost. The said complainant has filed the said appeal No. 453/95 for correcting the said amount of Rs. 1,14,500/- as 1,30,500/- and allowing him Rs. 20,000/- as compensation for the damage caused to the machine, Rs. 35,000/- as compensation for avoidance on the part of the Insurance Company in settlement of the insurance claim and Rs. 5,000/- as cost of the case. Besides that there is also prayer for cost of Appeal No. 453/95. On the other hand the National Insurance Company has filed the said Appeal No. 472/95 for setting aside the impugned order.

2. The case of the complainant (appellant in Appeal No. 453/95) before the District Forum was that Naik Mills had been insured by the National Insurance Company for Rs. 1,50,000/- for the period 6.2.1994 to 5.2.1995 under Insurance Policy Nos. 7504855/94 and 3104023/94. In between the night of 7th and 8th April, 1994 there was incident of fire in the mill. Fire Brigade was informed and the fire was extinguished with the help of the Fire Brigade. The police and the Insurance Company were informed about the incident of fire and insurance claim was preferred. The Insurance Company appointed a Surveyor who submitted his report but his claim was not settled which led to the filing of complaint case before the District Forum. In the complaint petition damage to granules of tobacco stem, crusher machine and building shown as Rs. 1,45,000/-, Rs. 20,000/-, and Rs. 40,000/- respectively but the insurance claim was confined to Rs. 1,50,000/- only. Besides this, Rs. 35,000/- was claimed as compensation. Interest at the rate of 24% over the insurance claim of Rs. 1,50,000/- was also claimed.

3. Written statement was filed on behalf of the opposite party-Insurance Company before the District Forum and the case was contested. The case of the opposite party was that the complainant had got no cause of action and the right to file the case as the insured was State Bank of India, Dalsinghsarai Branch and it is the said Bank which is competent to lodge any claim and to receive compensation, if any, payable under the terms of the policy. The mill was not running regularly and was in the stage of winding up. The proprietor of the mill under a deliberate planning manufactured the entire fire panorama to grab money from the Insurance Company and to digest the Bank loan. The Surveyor who visited the spot had reported that at most the insured articles worth Rs. 25,800/- had been damaged and destroyed. The building had not been insured but a false claim has been advanced with regard to damage to the building. The complainant was required to provide the position of stock and other details but he failed to do so till 24.8.1995 which goes to show that bogus and fictitious details have been provided after inordinate delay. The claim of the complainant was in the process of re-assessment on his request and the office of the Insurance Company and the duly authorised Surveyor of Government of India was waiting for the papers on the basis of which re-assessment could be done but the complainant did not provide the papers and keeping the office of the Company and Surveyor in dark filed the complaint case stealthly and under the circumstances there was no deficiency in service on the part of the Insurance Company. On the allegations aforesaid the Insurance Company (opposite party) had prayed for dismissal of the case.

4. Now it has to be considered if the impugned order requires modification as prayed for in Appeal No. 453/95 or is fit to be set aside as prayed for in Appeal No. 472/95.

5. From the insurance papers brought on the record of the District Forum it appears that the insurance was against burglary and fire which covered risk concerning tobacco leaf, tobacco dust and machine equipments. For deciding the insurance claim concerning tobacco, the District Forum has relied solely on Cash Credit Account dated 31.3.1994 said to have been submitted by the complainant to the State Bank of India. In the Cash Credit Account the total stock has been shown as 40,000 kg. worth Rs. 1,45,000/-. Besides other papers, the complainant had filed before the District Forum photo-copy of the Stock Register for the year 1993-94. The stock as shown on 31.3.1994 in the photo-copy of the Stock Register differs from the position of the stock as shown in the Cash Credit Account dated 31.3.1994 but the District Forum has neither considered the same nor has assigned any reason for ignoring the same. The insurance claim also concerned damage to crusher machine and on this count Rs. 20,000/- had been claimed. Strangely enough the District Forum has not considered at all this aspect of the insurance claim. Besides the insurance claim of Rs. 1,50,000/-, the complainant in his complaint petition had also claimed Rs. 35,000/- as compensation and interest at the rate of 24% over the insurance claim of Rs. 1,50,000/- but the District Forum has not considered the same also.

6. It is the specific case of Insurance Company in the written statement filed before the District Forum that the insured was State Bank of India and hence the complainant had neither cause of action nor right to file the complaint case. In the insurance papers the State Bank of India, Dalsinghsarai has been shown as insured a/c Nayak Mills. The District Forum has not considered the plea of the Insurance Company to the said effect. In view of the above facts, the State Bank of India, Dalsinghsarai Branch, was a necessary party to the case but has not been impleaded as a party to the case. The complainant had filed several documents as per list before the District Forum. Except the Cash Credit Account, the other documents have not been considered by the District Forum. In the written statement filed before the District Forum the Insurance Company had pleaded that the Surveyor who visited the spot had reported that at most the insured articles worth Rs. 25,800/- had been damaged and destroyed and on the request of the complainant his claim was in the process of re-assessment and the office of the Insurance Company and the duly authorised Surveyor of the Government of India was waiting for the papers on the basis of which re-assessment could be done but the complainant who had been required to provide the position of stock and other details, instead of providing the papers filed the complaint before the District Forum. The plea to the aforesaid effect goes to show that the Insurance Company was willing to re-assess the claim of the complainant provided he made available to the Company the papers showing position of stock and other details.

7. In view of what has been pointed out above, this case is fit to be remanded back to the District Forum for a fresh decision in accordance with law and hence it would not be proper to go into the merits of the cases of the parties. Accordingly the impugned order dated 19.5.1995 is hereby set aside and the matter is remitted back to the District Forum for a fresh decision in accordance with law. In case the Insurance Company shows its willingness before the District Forum to consider the claim of the complainant, the District Forum will give an opportunity to the complainant to make available the relevant papers to the Insurance Company and the Insurance Company will be given reasonable time to consider the same. The Insurance Company will also be given an opportunity to bring on record the report of the Surveyor who had been to the spot to assess the damage. The District Forum will also give an opportunity to the complainant to implead State Bank of India, Dalsinghsarai, as party to the case. In case of failure of the complainant in making the relevant papers available to the Insurance Company or the failure of the Insurance Company in considering the claim of the complainant within reasonable period fixed by the District Forum, the District Forum will give an opportunity of hearing to the parties and dispose of the case on merit in accordance with law. Both the appeals are disposed of accordingly. Under the circumstances of the case there will be no order as to cost.

8. Let the record of the District Forum alongwith a copy of this order be sent to the District Forum so that the hearing of the case may be expedited. Copy of this order be sent to both the parties also.

Appeals disposed of.