Oriental Insurance Co. Ltd. vs GARG ROLLER FLOUR MILLS

PETITIONER herein is the opposite party before the District Forum. Truck of the respondent met with an accident. A Surveyor was appointed by the Insurance Company who valued the loss on the basis of total loss at Rs. 2,65,000/- considering the motor vehicle average for similar make and model. He also valued the salvage of the truck with RC (Registration Certificate) at Rs. 70,000/- and without RC (Registration Certificate) at Rs. 50,000/-, accordingly arriving at figures of Rs. 1,95,000/- and Rs. 2,15,000/- respectively. However, if we refer to Surveyor''s report, it shows that the complainant agreed the amount of Rs. 2,65,000/- on total loss basis. Subsequently it appears the Insurance Company repudiated the claim by letter dated 28.6.1995. While informing the complainant that the claim was repudiated, the Insurance Company also told him that the Insurance Company had no right on the salvage of the accidental vehicle and the complainant was at liberty to dispose the same as it deems fit. The matter did not rest there. Complainant went to District Forum. The District Forum allowed the claim of the complainant. Aggrieved by the order of the District Forum, the Insurance Company went in appeal to the State Commission. The State Commission upheld the order of the District Forum and dismissed the appeal. State Commission, however, recorded that on an earlier application filed by the Insurance Company it was directed that the complainant would deposit the salvage with the Insurance Company. However, while passing the final order State Commission referred to the aforesaid letter of the Insurance Company and took the view that it had foregone its claim on the salvage. Aggrieved by the order of the State Commission the Insurance Company has filed the present revision. We think there is an apparent mistake by the State Commission in reading the letter dated 28.6.1995 of the Insurance Company to the complainant. The Insurance Company gave up the claim on salvage only when it had repudiated the claim and once they repudiated the claim they could have no claim on the salvage. It is only when the claim was allowed by the District Forum and the State Commission the Insurance Company had lodged its claim on the salvage. This salvage was sold by the complainant for Rs. 48,000/- as per the receipt appearing in Annexure R-1, on record. Accordingly, while affirming the order of the State Commission we direct the respondent/complainant to pay Rs. 48,000/- with interest at the rate of 12% p.a. from 1.8.1997, i.e. one month from the date of the order of the State Commission. This revision is, therefore, allowed in part. No costs. Revision Petition partly allowed.