MAHANAGAR TELEPHONE NIGAM LTD vs PREM PRAKASH

M/s. Surya Synthetics, a cloth manufacturing unit, insured its stock of yarn, semi -finished and finished goods with the New India Assurance Co. Ltd., for Rs. 4 lacs for the period 3.4.1992 to 2.4.1993. There was a fire on 10.10.1992 in the premises resulting in tremendous loss. The Insurance Company paid only a sum of Rs. 87,402/ - to the Bankers of the complainant. Aggrieved against it, the complaint was instituted. District Forum held on 26.3.1997 that the compensation of Rs. 87,402/ - awarded was sufficient. Aggrieved against it, the present appeal has been preferred.

M /s. Surya Synthetics is located in the Industrial Area, Baddi, Himachal Pradesh. It had insured the premises in respect of yarn goods and allied nature and semi -finished and finished goods in the sum of Rs. 4 lacs. On 10.10.1992 late in the evening there was a fire in the premises and despite best efforts made by workmen of the complainant and other agencies there was a considerable loss. A Daily Diary Report No. 20 was also lodged at Police Station Barotiwala on 11.11.1992 (Annexure C -3). The claim put forward which finds mention in para 16 of the complaint is as under: (a) Loss of stock in the fire: Rs. 3,29,696.90 (b) Loss of money due to salary Rs. 21,000.00 paid to workers (as per para 10 -a) (c) Loss of interest (as per Rs. 65,000.00 para 10 -b of this complaint): (d) Loss of money (as per Rs. 7,000.00. para 10 -c of the complaint): (e) Expenditure incurred in Rs. 10,000.00 process of the claim: (g) Misc. and legal expenses: Rs. 5,000.00 Total amount: Rs. 4,37,696.90

The factum of fire and resultant loss is not disputed. Here the dispute relates to the quantum. Originally the respondent -Insurance Company appointed Shri R.C. Chugh as the Surveyor who visited the premises on 14.10.1992 as soon as he received instructions from the respondent - Insurance Company. In his detailed report after deducting value of the goods which could not be verified from the Bank, application of excess clause, etc. he had recommended that a sum of Rs. 2,16,140/ - was payable. On behalf of the appellant, it has been argued that the appointment of Mr. Soni as a subsequent Surveyor was wholly uncalled for. The respondents have also withheld the photographs which were taken by the first Surveyor. The Insurance Company was required to retain and produce those photographs here in a case where the repudiation was under challenge. On behalf of the appellant, our attention has been invited to M/s. Satsandh Cotton Factory v. The Oriental lnsurance Co. Ltd. & Another, III (1993) CPJ 1781, wherein a case of fire, lodging of report with the police and the survey carried out by Surveyor appointed by the Insurance Company was considered sufficient. In Sri Venkata Padmavathi Raw & Boiled Rice Mill v. The New India Assurance Co. Ltd. & Another, I (1993) CPJ 104 (NC), referred by the learned Counsel for the appellant the first preliminary survey report was given considerable importance. The learned Counsel for the respondent could not justify the appointment of a second Surveyor and that too after 5 months of tine occurrence. The conclusion is that the impugned order is set aside, we accept the appeal and it is held that the appellant is entitled to the sum of Rs. 2,16,140/ - together with interest @ 12% per annum w.e.f. the date of institution of the complaint i.e. 31.8.1993 till realisation minus the amount paid to the Bankers of the appellant referred to above. Appeal allowed.