NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

NEW DELHI

 

 

Original Petition No.30 of 1998

 

 

M/s Pankaj Variety Hall                                                        Complainant

10/94, Amrit Buildings

S M Street

Calicut

 

Represented by its Partner

Pankaj A Bhulani

 

Vs.

 

The Oriental Insurance Co. Ltd                                          

Registered Office, Oriental House

A 25/27, Asaf Ali Road

New Delhi.

 

M/s Oriental Insurance Co. Ltd.,

Divisional Office

11/27, 2nd Floor

Promod Buildings

Cherotyz Road

Calicut – 673 001

 

The Federal Bank Ltd.,

Perachunmi Towers

Indira Gandhi Road

Puthiyara 673 004.                                                                           Opposite Parties

 

 

 

Original Petition No.68 of 1998

 

 

M/s Pankaj Saree Emporium                                                          Complainant

10/94, Amrit Buildings

S M Street

Calicut

 

Represented by its Partner

Smt Chandni P Bhulani

 

 

Vs.

 

 

 

The Oriental Insurance Co. Ltd                                          

Registered Office, Oriental House

A 25/27, Asaf Ali Road

New Delhi.

 

M/s Oriental Insurance Co. Ltd.,

Divisional Office

11/27, 2nd Floor

Promod Buildings

Cherotyz Road

Calicut – 673 001                                                                             Opposite Parties

 

                                   

BEFORE:                     

 

                        HON'BLE MR. JUSTICE M.B. SHAH, PRESIDENT

                        MRS RAJYALAKSHMI RAO, MEMBER

                        MR. ANUPAM DASGUPTA, MEMBER

 

           

For the Complainant                         Shri S. K. Pattajoshi, Advocate

 

For the Opposite Parties                             Shri Vishnu Mehra, Advocate

                                                                        Ms Sakshi Mittal, Advocate

 

 

Dated the    16th    November,  2007

 

 

O  R  D  E  R

 

M.B. SHAH, J., PRESIDENT

 

          Sister concerns, M/s. Pankaj Variety Hall – Complainant in Original Petition No.30/1998,  and           M/s. Pankaj Saree Emporium – Complainant  in Original Petition No.68/1998 had their shops in the same building situated in the prominent locality of Calicut.  M/s.Pankaj Variety Hall was doing business in ladies garments and having their shop on the ground floor, while M/s. Pankaj Saree Emporium was dealing in sarees and also having its shop on the first floor.  They had taken insurance policies for a sum of Rs.25 lakhs and Rs.11 lakh respectively for the period from 11.7.1994 to 12.7.1995.

 

2.                During the currency of the policies taken by  Complainants,  on 17th February, 1995 at about 11.30 P.M. the shop of one M/s.Kannankandy Textiles caught fire and in that fire, 15 shops in row, including those of the complainants, were badly damaged. First floor was entirely brunt and stock (sarees and garments) was also destroyed.

 

 3.               For this fire and damage, there is no dispute.

 

 4.              However, as there was no satisfactory response from the Insurance Company in settling the claims preferred by the Complainants, the Complainants approached this Commission by filing the above-stated  two Original Petitions.

 

5.                Since the facts in both the cases are common and the survey reports and the contentions are also  similar, we dispose of both the Original Petitions by this common judgment.

6.                The dispute in both these complaints is with regard to the assessment of loss made by the surveyors.   It is contended that:

(i)      even though the building (claim is only in OP No. 30 of 1998) was fully renovated in 1972-73 and was a Class-I construction, which was required to be demolished because of the  fire, the surveyor, while assessing  the loss, had depreciated it by 50% without giving any justifiable reasons;

(ii)      there was no reason for not assessing the loss suffered by the complainants for the burnt garments/sarees; and

(iii)     the  assessment of the value of the salvage (damaged goods) is  totally arbitrary and unjustified and it is open to the Insurance Company to take it back and pay the value of the stock.

 

Original Petition No. 30 of  1998

7.                Complainant is a registered partnership firm running its business under the name and style of M/s Pankaj Variety Hall at Calicut. Complainant’s firm was dealing in ladies garments, hosiery items, etc. It was running its business on the ground floor of the building it had taken a policy in all for a sum of Rs.25 lakh, the details whereof are as under:

1.

Building

Rs.8,00,000/-

2.

Furniture & Fittings & Name Board

Rs.1,00,000/-

3.

Electrical Fittings, Exhaust Fan

Rs.   30,000/-

4.

Generator Birla Yamha 6A 2000, 88700

Rs.   20,000/-

5.

Emergency Lamp   S339

Rs.   10,000/-

6.

Air Conditioner 2 Nos. 1.5 tons (including stablizer

Rs.   30,000/-

 

Show cases – 3 Nos.  (i)    47x72”

                                    (ii)    47x72’’                     Rs.    10,000/-

   (iii)    90x65”

 

Stocks – All types of textiles                             Rs.15,00,000/-

               Piece goods, readymades

                Hosieries, mosquito nets etc.

                                                                             --------------------

                                                                             Rs.25,00,000/-

                                                                             -------------------

 

8.                As the claim  was not settled, the insured had  filed this complaint  claiming a sum of Rs.81,92,630/-.

 

Original Petition No. 68 of  1998

 9.              In the same building, also on the  first floor, the complainant was running a firm known as M/s.Pankaj Saree Emporium. Complainant had taken an insurance policy for a sum of Rs.11 lakh, the break up of which is as under:

 

I

Stock – all types of sarees and ladies apparels

Rs.10,00,000/-

II

Furniture & Fittings (including name board)

Rs.     90,000/-

 

Vaccum Cleaner

Rs.       3,000/-

 

Tape Recorder

Rs.       5,000/-

 

Franking Machine

Rs.      2,000/-

 

Total

Rs.11,00,000/-

 

10.              In this case, the Complainant claimed  a sum of Rs.46,05,700/-.  It is not necessary to mention the details of the claims made by the Complainant.

 

Original  Petition No.30 of 1998

Survey Reports:

I.                 Associated Engineers & Surveyors:

11.             On receipt of information from the complainant, the Insurance Company appointed M/s Associated Engineers and Surveyors who submitted their preliminary Survey Report on 8th June, 1995.

12.             In this survey report, in respect of the damage caused to the building it has been mentioned as under:

 

(a).    Situation

“The building, in which a portion is occupied by the insured, is situated on the eastern side of S M Street, Calicut. It is a two storeyed building. A major portion of both floors are occupied by the insured. The area occupied by M/s Pankaj Variety Hall and Pankaj Saree Emporium has got the door number 10/94 of Calicut Corporation. The portion occupied by Bharat Stores on the ground floor has the door number 10/95. The top floor is having the door number 10/93. The building as a whole is named as Amrat Buildings.”

 

 

(b).    Construction

 

(b1).           “The building is of Class I construction. It is quite an old one, the exact age of which is not known. However, the approximate age of the building will be around 85 years. A total renovation of the building was carried out during 1972-73.

 

                    Thereafter, it is further stated, “….. the ground floor was furnished quite lavishly and exuberantly since show is a vital part in textile sales and the insured has spent quite a good amount in furnishing the premises.”

 

(b2).           With regard to the loss due to fire it is mentioned, “…. the fire had spread through the roof which was mainly of tiles over hardwood frame. Textile and such other goods were stocked and/ or stored/ displayed in these rooms. Some had plastic goods also inside. The whole of the top floor in the row got almost totally burnt. However, the ground floor was safe from direct attack of fire in the insured premises, except in one corner room. 19 shops got affected due to fire.

 

(b3).           For the loss to the building, it was stated by the surveyor that on the 18th morning, he alongwith Mr.Raman, Branch Manager of the Insurance Company, inspected the premises. Again on the 19th it was inspected by the surveyor along with Mr. T.K.Vanchi, Sr. D.M., and Mr.Raman, and thereafter the surveyor observed as under:

 

“The rooms were not allowed to be opened from the front at that time by the authorities. Therefore, fixed glasses on the left side of Pankaj Saree Emporium were broken and access to it made. After taking photographs we made arrangements for salvaging the goods. Two rooms from the nearby Hotel Arya Bhavan was hired by the insured and stock was shifted to that safe place.

Hot water was dripping from the cracks of roof and walls. The water was mixed with ash, dirt and filth. Goods kept in almirahs and shelves with glass covering was safe from getting wet. Other goods got wet and dirtied. Smoke and heat had affected most of the stock. We found it very difficult to stay inside the rooms due to suffocation. The roof was cracked and main beams got partially burnt and broken. It appeared that the roof might give in at any time. Walls were leaking and water had dampened the cloths kept close to such walls inside shelves.  Clothes kept on tables, though covered with cotton clothes for preventing accumulation of dust, also got wet by the dripping water.

The roof appeared cracked and was sloping to the center. The pillars inside were some how holding it temporarily. The whole building was damaged totally and was beyond repairs. Top floor was completely burnt. Ground floor walls got cracked and roof severely damaged.”

 

(b4). Finally, it was observed as under:

“The building was almost completely damaged. The age of the building warrants that no repairs but reconstruction is inevitable. Laterite and undamaged wooden parts can be salvaged. Electrical wiring was damaged. Lamps and fans got wet. Air conditioners were seen externally unaffected.”

 

(b5).           Further, in the next paragraph, it was noted that the report was delayed due to non-cooperation of the insured by not providing information. The surveyor also noted that even though the insured had stated that he had maintained all the books of accounts up-to-date and meticulously, he had not shown any of the books.

 

 

II.       M/s. Team Surveyors

13.              Thereafter, the Insurance Company appointed M/s Team Surveyors, who submitted their final survey report on 25th September, 1995.

 

(a)  Building:

14.             The aforesaid surveyors assessed the loss caused to the building at Rs.9,65,144/-; however, they reduced it by 50% on the ground of depreciation and, thereafter, further reduced it by Rs.50,000/- for the salvage value. Hence, the surveyors finally assessed the net loss for the building at Rs.4,32,572/-.

 

(b)     Furniture, Fittings, etc.     

 15.               The loss caused to furniture, fittings, name board, electrical fittings and exhaust fan is  assessed  at Rs.33,312/-, which is not disputed by the Complainant.

(c)     Textile Goods

 

16.    For the value of stock, the loss suffered was assessed as under:

1.

Value of sound items (in selling rate)

Rs.4,65,077.90

 

 

Less 80% salvage value on selling price

Rs.3,72,062.32

 

 

(We consider 20% loss on account of suspected damages due to smoke/ wetness etc., though had been segregated as sound item by the insured’s employees in our presence)

Rs.   93,015.58

Rs.  93,015.58

2.

Value of wet/stained goods (on selling rate)

Rs.2,63,107.40

 

 

Less  Salvage value @ 50% on selling rate

Rs.1,31,553.70

 

 

 

Rs.1,31,533.70

Rs.1,31,533.70

3.

 Value of partially burnt goods (on selling rate)

Rs.     8,720.50

Rs.     8,720.50

 

Less  Salvage value

NIL

 

 

TOTAL

 

Rs.2,33,289.78

 

Considering 17.5% profit margin on cost price, the actual value of loss was worked out to    Rs.2,33,289.78 x 100 = Rs.1,98,544.49

                                                          117.5

17.              Therefore, the assessed loss on stock of all types of textile goods comes to Rs.1,98,544.49.

18.             Summary of Assessment

1.

Building

Rs.4,32,572.00

2.

Furniture, Fittings & Name Board

Rs.   11,750.00

3.

Electrical Fittings and Exhaust Fan

Rs.   21,562.50

4.

Stock of Textile Goods

Rs.1,98,544.49

 

TOTAL

Rs.6,64,428.99

          Thus, the net assessed loss for all items is Rs.6,64,429/-.

 

III.      M/s. N. Velayutham & Company

19.             It appears that, not being satisfied with the assessment made by the Team Surveyors, and without seeking any explanation from the Team Surveyors, the Insurance Company appointed one M/s.N.Velayutham & Company as a third surveyor, who submitted their report on 14th January, 1997.  Their  assessment of  loss is as under:

 

(a).    Building

Reconstruction cost of buildings

Rs.9,65,144/-

Less : Depreciation 64.5%

Rs.6,22,518/-

Depreciated value of building

Rs.3,42,626/-

 

(b).    Furniture, Fittings and Name Board        

                    For this, the damage assessed by the Team Surveyors needed no revision.

 

(c).    Abstract of Assessment

                   Ultimately, their assessment is as under:

         

1.

Stock

Rs.2,34,963.40

2.

Building

Rs.3,42,626.00

3.

Furniture etc.,

Rs.   11,750.00

4.

Electrical items

Rs.   28,750.00

 

Total

Rs.6,18,089.40

 

         

20.             After receipt of the said survey report, the Insurance Company,  by its letter dated 02nd September, 1997,  offered a sum of Rs.5,75,425/- to the complainant. The same was not accepted and these  complaints were filed before this Commission.

 

 21.            By an interim order dated 20th April, 2006 passed by this Commission, the Insurance Company was directed to pay a sum of Rs.5,75,425/- with interest @ 12% p.a. from 1st August, 1995 i.e. six months from the date of the fire. That amount is admittedly paid to the complainant. 

Findings

Original Petition No.30 of 1998

22.    In this complaint, the dispute is only with regard to the arbitrary  and imaginary  method adopted  by the Surveyors in assessing the loss caused  to the building and the stocks.

 

I.        Buildings

23.              The learned Counsel for the complainant vehemently pointed out that after assessing the loss for the building at Rs.9,65,144/-, there was no justifiable grounds for depreciating it by 50% or 65% by the Team Surveyors and N.Velayuthan & Co., respectively. He submitted that, no doubt, the building was old, but it was fully renovated in the year 1972,  as mentioned by the preliminary surveyor, namely, M/s Associated Engineers and Surveyors. Further, the preliminary surveyor had mentioned that the building was a class I construction and a total renovation of the building was carried out during the year 1972/1973. The preliminary surveyor had stated that the ground floor was furnished quite lavishly and exuberantly since a grandeur show for  such shop was vital. For this, the insured had spent quite a good amount in furnishing the premises. He also noted that the fire continued for nine hours and that the whole of the top floor got almost totally burnt. Since the top floor was burnt almost fully, heat was radiating downwards. The roof of the ground floor got damaged. Hot water was dripping from the cracks of roof and walls. The water was mixed with ash, dirt and filth. Even the second surveyor, namely, M/s.Team Surveyors, stated that in  these circumstances the building was required to be completely demolished and re-built. For reconstruction, they assessed the cost at Rs.9,65,144/- and reduced the loss by deducting Rs.4,32,572/- (50% of the assessed cost of reconstruction).

 

24.             As against this, the complainant produced on record evidence to the effect that they spent more than Rs.21 lakh for reconstruction of the building.

 

25.              In our view, simply because the complainant claims to have spent a large amount for reconstruction, it would not mean that the complainant is entitled to recover that amount (in this case the sum assured for the buildings was Rs.8 lakh.)

 

26.              However, depreciation of the assessed cost of reconstructing the insured building by 50% appears to be totally unjustified and without any basis, as the building was completely renovated in the year 1972 and, the shops were well decorated and maintained.

 

27.              Further, no reason is given by the surveyor in reducing the cost of reconstruction of the building by 50%. That assessment apparently requires to be modified. At the same time, in our view it would not be proper to grant the sum assured, i.e., Rs.8 lakh as contended by the complainant.

 

28.             In this set of circumstances, in our view it would be just and reasonable to fix the depreciation at 25%, i.e., it should be reduced  by  Rs.2,41,000/- only  (i.e., 25% of  Rs.9,65,000/-).   Hence, it is ordered that for the building, the complainant would be entitled to get/- a further sum of Rs.2,41,000/-, in addition to Rs.4,32,572, i.e., Rs.6,73,572/- [Rs.2,41,000/- + Rs.4,32,572]  less Rs.50,000/-  on account of salvage as assessed by the Surveyor, which comes to Rs.6,23,572/-.

 

II.       Stocks

29.             For the textile goods, the learned Counsel for the complainant submitted that the loss assessment was totally unjustified because all throughout the relevant period, as supported by the bank statements, the complainant was keeping stocks worth more than Rs.12 lakh. He further submitted that on the basis of the purchase bills and accounts which were audited by a Chartered Accountant, in all,  the stock was for a sum of Rs.15,10,000/-.  However, Mr. Mehra, the learned Counsel for the Insurance Company submitted that subsequent preparation of the accounts by the Chartered Accountant could not be relied upon for giving compensation, because the Complainant did not show the account books to both the surveyors despite demand 

 

30.             M/s.Team Surveyors had stated that the insured had not submitted any documents showing the stock position held at their premises and the total stock value and type/ extent of loss/ damage was arrived at by them only, on the basis of the list prepared, for sound items, partially damaged and partially burnt.

 

31.             Mr.Mehra further submitted that the surveyor M/s. N.Velayutham & Company had also mentioned that the complainant had not furnished the accounting records, registers, purchase bills, etc. Thereafter, some books of accounts were shown to the surveyor. Therefore, they appointed a Chartered Accountant to verify the books of accounts, which were produced before them.   In addition, the learned Counsel Mr.Mehra relied upon the statement in the reply to the legal notice dated 07th January, 1997 wherein it was stated that the account books as well as the stock position, balance sheets, profit and loss accounts were not produced till then.

 

32.             Considering the above facts, there was no reason for the Complainants not to produce the relevant books of accounts before the surveyor.  There was also no reason for the Complainants not to produce at least the computerized accounts which, according to the Complainants, were maintained by them.

 

33.             In this set of circumstances, it would be proper to rely upon the assessment made by the surveyor.

 

34.             At the same time, it is to be highlighted that the Team Surveyors did not take into consideration the stocks of textile goods which were completely burnt.

 

35.             For this purpose, learned Counsel Mr.Pattjoshi submitted that the statements furnished to the bank should be taken into consideration. Learned Counsel for the complainants further submitted that, in any case, the salvage value assessed for the damaged goods @ 80% and 50% respectively was totally unjustified. He, therefore, pointed out that the value of the damaged articles was Rs.4,65,077.90 as per the survey report of M/s. Team Surveyors.   On this, there was a deduction of 80%, i.e., Rs.3,72,062.32 and the surveyor assessed the loss payable at Rs.93,015.58. Similarly, for the wet/stained goods, the surveyor assessed the loss at Rs.2,63,107/- and its salvage value was assessed at Rs.1,31,553/-  i.e., by reducing it by 50%. He therefore, submited that deduction of Rs.5,03,616/- (i.e., Rs.3,72,062.32 plus Rs.1,31,553/-) on the basis of salvage value was not justified. He further submitted that the complainant was not interested now in keeping the said salvage goods with him, though, in the year 1995, the complainant had offered a sum of Rs.2,95,000/- for the damaged stocks which was not accepted by the Insurance Company,  at the relevant time.

 

 36.             The learned Counsel for the complainant submitted that it would be open to the Insurance Company to sell or destroy the said stocks. Learned Counsel for the complainant further submitted that as far as the complainants were concerned, they had sought permission to sell the damaged goods but no reply was given by the Insurance Company.

 

37.               It is also true that today the damaged stock would be of no use to the complainants or to the Insurance Company. Further, considering the facts of the case that no action was taken by the complainants or the Insurance Company for the disposal of the damaged stock, in our opinion, it would be just and proper to reduce the salvage value of the goods to Rs.2,00,000/- only, instead of Rs.5,03,616/-.

 

38.              It is also true that for the burnt stock, no assessment was made but the learned Counsel for the opposite party Shri Mehra rightly submitted that the complainant did not produce the documents at the relevant time showing the exact stock position of the complainant on the date of the fire.  Hence, there was no basis to assess the loss to the goods which were totally burnt.          We accept the said contention of the learned Counsel Mr.Mehra.

 

39.             In the result, the complaint is partly allowed, as summarized below:

 

                    (i). For the building, the Insurance Company is directed to pay a sum of Rs.4,32,572/- plus Rs.2,41,000/- as stated above, i.e., Rs.6,73,572/-  (-) Rs.50,000/-  on account of salvage value which comes to Rs. 6,23,572/-. 

                    (ii). In respect of textile goods, instead of deducting Rs.5,03,616/- from the value of stock, the deduction would be Rs.2 lakh. Hence, the Complainant is entitled  to get Rs.3 lakh more, i.e., in all Rs.4,98,000/- (rounded)  (consisting of Rs.1,98,544/-   as assessed by the surveyor + Rs.3,00,000/-).

                    (iii). The complainant is also entitled to get a sum of Rs.11,750/- towards the furniture, fittings and name board, as assessed by the surveyor and a further sum of Rs.21,562.50 for electrical fittings and exhaust fan.

 

40.             In this view of the matter, the net amount payable by the Insurance Company would be as under:

 

1.

Building

Rs.6,23,572 [Rs.6,73,572  (-) Rs.50,000 salvage value]

2.

Furniture, fitting and Name Board

Rs.   11,750

3.

Electrical fittings & Exhaust Fan

Rs.   21,562.50

4.

Stock of Textile Goods

Rs.4,98,000

 

Total

Rs.11,54,884.50

 

Less already paid in terms of this Commission’s order dated 20.04.2006

Rs.5,75,425

 

The net amount payable by the Insurance Company would be Rupees six lakhs thirty two thousand six hundred nineteen and paise fifty only

Rs.5,79,459.50, rounded off to Rs.5,79,500

 

 

41.              The alleged claim made by the complainant for compensation, cannot, however, be justified and is rejected.

 

42.              Hence, the Insurance Company is directed to pay the remaining amount of Rs.5,79,500/-  (rounded) to the Complainant with interest at the rate of 12% p.a. from 1.8.1995, i.e., after six months from the date of the accident till its payment.

 

 

 

ORIGINAL PETITION No. 68 of 1998

 

43.              This complaint is filed by M/s. Pankaj Saree Emporium which was on the first floor of the aforesaid building. Complainant lodged a claim for a larger amount. However, M/s Team Surveyors assessed the loss by its report dated 25th September, 1995 as under:

 

 

 

Assessment of the loss

 

I.       Sarees and Ladies Apparels

 

44.    Based on the details furnished in our “extent of loss/ damage” column under sub-heading “Sarees and Ladies Apparels” “without prejudice” the loss is assessed as below.

 

1.

Value of sound goods

Rs.1,78,903.00

 

 

Less :  80% salvage value on selling rate

Rs.1,43,122.40

 

 

(we have considered 20% loss on selling rate on account of suspected damage due to smoke/wetness etc., though have been segregated as sound item by the insured’s employees in our presence)

Rs.   35,780.60

Rs.   35,780.60

2.

Value of wet & stained sarees

Rs.4,54,587.00

 

 

Less : 50% salvage value

Rs.2,27,298.50

 

 

 

Rs.2.27.293.50

Rs.2,27,293.50

3.

Value of partially burnt sarees

Rs.     4,474.00

Rs.     4,474.00

 

Less : Salvage value

NIL

 

 

TOTAL

 

Rs.2,67,548.10

 

          Considering 20% profit margin on cost price, the actual value of loss is worked out = Rs. 2,67,548.10x100     = Rs.2,22,956.75

                                                120

 

Assessed loss on stock of sarees/ ladies apparels = Rs.2,22,956.75.

 

 

II.      Furniture, Fittings Including Name Board

 

 

 45.            For the aforesaid items the loss assessed is as under:

 

1.

Repair/ replacement charges of furniture and fittings

Rs.20,550.00

 

Less : Salvage value

Rs.  1,500.00

 

 

Rs.19,050.00

 

 

III.     Vacuum Cleaner, Tape Recorder and Franking Machine:

 

 

a.

Vacuum Cleaner

Rs.2,500.00

b.

Tape Recorder

Rs.2,500.00

3.

Franking Machine

Rs.2,000.00

 

Total

Rs.7,000.00

 

 

Summary of Assessment

 

1.

Stock – all types of sarees and ladies apparels

Rs.2,22,956.75

2.

Furniture & Fittings

Rs.   19,050.00

3.

Vacuum cleaner, Tape Recorder and Franking machine

Rs.     7,000.00

 

Total

Rs.2,49,006.75

 

 

46.             Therefore the net assessed loss rounded off comes to Rs.2,49,007/-.

         

47.              Learned Counsel for the complainant vehemently contended that there was no justifiable ground in not assessing the loss for the stock of sarees and ladies apparels which were burnt, on the basis of the stock statement submitted by the complainant to the bank for hypothecation purposes. He further submited that, in this set of circumstances, there was no justifiable reason for arriving at the conclusion that the goods damaged due to smoke and wetness would fetch 80% of their value. He submitted that once the sarees are damaged, they would not fetch much value. 
Same is the contention with regard to the wet and stained sarees for which the salvage value was assessed at 50%.

 

48.             With regard to the burnt sarees, the learned Counsel for the Insurance Company submitted that the surveyor tried to verify the accounts books of the complainant, but the complainant failed to produce the same before the surveyor.

 

49.             As in the previous complaint, the learned Counsel for the complainant further submitted that today the damaged sarees and ladies apparels would not fetch any value and the said stock  kept  by

the complainant in his premises, could be taken away by the Insurance Company by paying full amount as assessed by the surveyor.

 

50.              It is true that at present, the damaged sarees or ladies apparels would not fetch  any value for the Insurance Company or to the Complainant. At the same time, as the insured had offered a sum of Rs.1,20,000/- in the year 1995, we think that it is just and proper to assess the value of the said salvage stock at Rs.50,000/-.   Instead of deducting Rs.1,43,122.40 (80% salvage value of  sound goods on selling rate) and Rs.2,27,293.50  (50% salvage value of wet and stained sarees), deduction would be only Rs.50,000/-.  This would mean that deduction of Rs.3,20,000/-  was unjustified.  Hence,  the Complainant is entitled to  get additional amount of Rs.3,20,400/-.

 

51.              In the result, the insured is entitled to get a sum of Rs.2,49,000/- as assessed by the surveyor plus Rs. 3,20,400/- for the damaged goods (sarees and ladies apparels).

         

52.              In this case also, it is admitted that on the basis of our order dated 20th April, 2006, the Insurance Company has paid Rs.2,41,934/- with interest @ 12% from 01st August, 1995. In this view of the matter, the Insurance Company is directed to pay the remaining amount of Rs.3,28,498.65 with interest @ 12% from 01st August, 1995,  i.e., six months from the date of the accident.

 

53.              In regard to the alleged claim of the complainant for compensation, in our view, it cannot be justified and is rejected.

 

54.              In the result, the complaints are allowed accordingly. In Original  Petition No. 30 of 1998 the Insurance Company is directed to pay a sum of Rs.5,79,500/- with interest at the rate of 12% p.a. from 1.8.1995  to the Complainant within a period of six weeks from today.

 

55.              Similarly, in complaint No. 68 of 1998, the Insurance Company is directed to pay a sum of Rs.3,28,500/- (rounded figure)  with interest at the rate of 12% p.a. from 1.8.1995, i.e. six months from the date of the accident to the Complainant within a period of six weeks from today.

 

                   There shall be no order as to costs.

 

………………………………J

[ M B Shah ]

President

 

 

………………………………

[ Rajyalakshmi Rao ]

Member

 

 

………………………………

[ Anupam Dasgupta ]

Member