Full Judgment Text
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PETITIONER:
M/S CHENGALRAYAN CO-OPERATIVE SUGAR MILLS
Vs.
RESPONDENT:
ORIENTAL INSURANCE CO. LTD. & ANR.
DATE OF JUDGMENT: 30/09/1999
BENCH:
D.P.Wadhwa, S.S.Ahmad
JUDGMENT:
D E R The main contention raised by learned counsel for the
appellant is that the National Commission ought to have
allowed the claim on the basis of the report of the Surveyor
who had recommended payment of Rs.41,13,127.87/- for the
value of the gunny bags destroyed in the fire. The National
Commission before which this question was raised, considered
the evidence on record and ultimately recorded a finding
that the appellant itself by its letter dated 19.12.1989 had
invited quotation from various insurance companies for a
Fire Policy setting out the details as under : "1. Fire
Policy Stock of Sugar 400 Lakhs Stock of gunnies 12 Lakhs
Stock of sulphur & 6 Lakhs chemicals Stock of stores and
spares 35 Lakhs ----------- Total value of Fire Policy 453
Lakhs ----------- The entire stock lying in the premises of
the appellant was destroyed by a major fire accident which
took place on 15.11.1990 and although the Policy had not
till then been issued by the respondents, the claim raised
by the appellant was not repudiated and the Policy was also
issued in December, 1990. The appellant and the respondents
mutually settled the claim so far as other items were
concerned but they did not agree on the quantum of
compensation for the stock of gunny bags and consequently,
the appellant approached the National Commission which held
that though there was no deficiency of service, the
respondents were liable to pay Rs.11,69,994/- to the
appellant as they themselves had made that offer by their
letter dated 24.4.1992. The National Commission also
allowed interest at the rate of 18 per cent from the date of
its order provided the amount was not paid within two
months. Having regard to the facts and circumstances of
this case, we are not prepared to accept the contention of
the appellant’s counsel that the claim should have been
allowed in terms of the surveyor’s report. It is not
disputed that the appellant itself by its letter dated
19.12.1989 had invited quotations for a Fire Policy and in
that letter of invitation, it had mentioned the value of the
Policy in which they had indicated the value of the gunny
bags as Rs.12 lakhs. In this background, the National
Commission was justified in not placing any reliance on the
surveyor’s report. We fully endorse the view of the
National Commission and reject the contention raised by the
appellant’s counsel that the claim ought to have been
allowed in terms of the surveyor’s report. We, however,
feel that the interest ought to have been awarded from the
date on which the claim was filed before the National
Commission. Consequently, while maintaining the order of
the National Commission for payment of Rs.11,69,994/- to the
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appellant as value of Gunny Bags, direct that this amount
shall be paid within two months from today and that too,
with interest at the rate of 18 per cent per annum from the
date of filing of the claim before the National Commission
till the date of actual payment. The appeal is disposed of
in the manner indicated above without any order as to costs.