Rajesh Textiles vs National Insurance Co. Ltd

THE insured M/s. J.S. Rajesh Textiles has filed the present revision petition. THE petitioner has business premises at D-25, Textiles Market, Pandri, Raipur. His business premises is being insured since last many years '' for fire and allied perils covered.

THE relevant policy was for the period from 06.02.2007 to 05.02.2008 for a sum of Rs.5,50,000. Torrential rains on the night falling between 28th and 29th June, 2007, caused damage to the clothes to the extent of Rs.3,00,000/-. Insurance Company appointed Sh.T.S. Tuteja, who, verbally informed the complainant about the estimated loss of Rs.2,00,000/-. THE Insurance Company was contacted but it did not reimburse the said amount. The complainant filed a complaint before the District Forum, Raipur, on 07.05.2010, wherein it claimed the compensation in the sum of Rs.3,00,000/-. The District Forum awarded a sum of Rs.2,00,000/- and interest @ 6% p.a. from 05.11.2007, till the payment and awarded penalty in the sum of Rs.5,000/- for harassment and Rs.1,000/- for litigation expenses. According to the complainant ''s counsel, that was the correct order.

Aggrieved by that order, the Insurance Company approached the State Commission. The State Commission partly allowed the appeal and directed the insurance company to pay a sum of Rs.1,88,000/- to the complainant, along with interest @ 6% p.a. from the date of filing of the complaint till the date of payment. It also awarded costs in the sum of Rs.2,000/- in favour of the complainant.

We have heard the learned counsel for the parties. The petitioner did not pick up a conflict with the following finding of the learned State Commission:- "10. The insurance company, even after receiving report of the Surveyor, dated 16.08.2007, kept mum for a long time, though the complainant was writing it again and again to pay the amount of compensation. As the estimated cost of the damaged articles was Rs.2,31,780/- but he was agree with the assessment of the Surveyor to the tune of Rs.2,00,000/-. The Surveyor has further reduced the amount and has recommended only Rs.1,03,935/- after deducting, policy excess. The insurance company has not even paid that amount and kept the matter pending on one pretext or another, which is clearly a case of deficiency in service on the part of the insurer and considering it, if the District Forum has passed the impugned award on the figure of Rs.2,00,000/-, which was agreed by the surveyor and informed to the insured, then only the amount of policy excess @ 5%, i.e. Rs.10,000/- and value of salvage Rs.2,000/-, in all Rs.12,000/-, at the most, can be deducted from the amount of award passed by the District Forum and remaining amount is payable by the insurance company ".

The only point raised by the learned counsel for the petitioner was that the interest should be granted from the date of the incident or at the most from the date of Surveyor ''s report. It may be recalled that the incident took place on the night intervening 28th and 29th June, 2007. The date of the Surveyor ''s report is 6th, 7th and 12th July, 2007. The District Forum directed that simple interest @ 6% p.a. from 05.11.2007, till the payment is made, be granted. The State Commission held that interest @ 6% p.a. from the date of filing of the complaint, till its payment is granted. The complaint was filed on 07.05.2010.

IT must be borne in mind that the grant of interest has always been the discretionary power of the courts. No rule of thumb can be laid in this context. The counsel for the petitioner argued that there are several authorities which are in favour of the petitioner. We are also aware of two authorities. The first is reported in United India Insurance Co. Ltd. Vs. Great Eastern Shipping Co. Ltd., (2007) 7 SCC 101, where the Hon ''ble Supreme Court of India was pleased to observe, as under : "26 ... .... Therefore, we affirm the order passed by the Commission on this count also. However, we may modify the order of the Commission with regard to interest. The Commission has granted interest @ 9% from the date of report of the surveyor, but we modify the said order and direct that the claimant will be entitled to interest at the same rate from the date of the order of the Commission, instead of the date of the report of the surveyor ".

Same view was taken by this Commission in M/s. Banaras Beads Ltd. Vs. New India Assurance Co. Ltd., by his Lordship Hon ''ble Mr. Justice M.B. Shah, in OP No. 243/1998, decided on 12.01.2005. The instant case stands on a better footing. In view of the said authorities, the argument urged by the learned counsel for the petitioner does not whittle down the value of order passed by the State Commission and, as such, the revision petition is dismissed.