ORIENTAL INSURANCE CO. LTD. vs RAVJISA YAMASA KSHATRIYA

THE Appeal No. 69 of 1994 has been filed by Oriental Insurance Co. Ltd challenging the order dated 30.8.1993 passed by the State Commission, Maharashtra directing the Insurance Company to pay a sum of Rs. 1,60,000/- to the complainant in the case being the loss sustained by him as a result of theft from a godown which he had insured with the Appellant Company. First Appeal No. 70 of 1994 has been filed by the complainant contending that the disallowance of interest on the aforesaid amount of Rs. 1,60,000/- was not legal and proper.

WE have heard Mr. S.M. Suri, learned Advocate appearing on behalf of the Oriental Insurance Company (Appellant in First Appeal No. 69 of 1994) and the insured who appeared in person Shri Suhash Kshatriya, partner of the Respondent firm. We have also perused the records of the case. In our opinion, the State Commission has given perfectly valid and sound reasons for holding the repudiation of the claim by the Insurance Company was arbitrary and unreasonable and that the insured is entitled to be paid a sum of Rs. 60,000/- as representing the loss sustained by him by reason of the theft of the articles which had been insured with the Appellant in First Appeal No. 69 of 1994. Appeal No. 69 of 1994 is, therefore, wholly devoid of merits and it is dismissed. Coming to First Appeal No. 70 of 1994, we are of opinion that the contention of the Appellant that the total denial to him of interest on the amount of Rs. 1,60,000/- was not just, correct or proper has to be upheld. The insured has made his claim on 19th Decomber,1990 and allowing a reasonable period of four months to the Insurance Company to taking its decision, we are of the opinion that the Insurance Company should be directed to pay interest at 15% on the sum of Rs. 1,60,000 / - which has been found to be payable to the present appellant from 30.4.1991 till the date of actual payment. We direct that the interest at the aforesaid rate for the period specified above together with principal amount of Rs. 1,60,000/- shall be paid within two months from today. The Insurance Company who is the appellant in First Appeal No. 69 of 1994 shall also pay a sum of Rs. 2,500/- by way of costs to the respondent in the said appeal.