(1) CIVIL Appeal No. 2339 of 1992 The respondent M/s Roshan Lal Oil Mills (P) Ltd., together with Punjab Financial Corporation, Punjab State Industrial Development Corporation and State Bank of Patiala, had jointly obtained from the appellant a fire insurance policy in respect of the "stock of mustard seeds and/or toria and/or soyabean and other goods of oilseeds of like nature stored in a silo installed near the oil mill in the factory premises of the respondent situated at Mansa Road, Bhatinda". The details of goods insured are: Oilseeds stock (value) Rs 1,00,00,000 Silo (1st class construction) Rs 10,00,000 It was also mentioned in the insurance policy that the stock of oilseed of the value of Rs 1 crore was pledged with State Bank of Patiala (City Branch), Bhatinda, together with a silo which was pledged/hypothecated with Punjab Financial Corporation and Punjab State Industrial Development Corporation, Chandigarh for Rs 10,00,000.

(2) IN consideration of additional premium, the appellant subsequently extended the insurance cover to "loss or damage by fire only to the property insured caused by its own fermentation, natural heating or spontaneous combustion".

(3) ON 3-8-1990, the respondent reported to the Senior Divisional Manager, United India Insurance Co., Bhatinda, as under:

"Please refer to above policy regarding storage of (i) seeds. It is for your information that about 9860 (I) mustard seed stored in silo has been affected due to self-spontaneous combustion. You are requested to please register our claim and arrange to depute the surveyor to assess the loss and to avoid any further loss to goods."

(4) IMMEDIATELY on the receipt of this information, the appellant appointed one Shri D.K. Garg of Bhatinda to carry out the preliminary survey who visited the respondents premises on 4-8-1990 and submitted his report after four months in January 1991. Three days later i.e. on 7-8-1990, the appellant appointed M/s Thapar Srinivasan & Kapoor Pvt. Ltd. to survey and assess the loss caused to the respondent. They visited the respondents premises on 7-8-1990 and again on 16-8-1990. On that date, namely, on 16-8-1990 the appellant also appointed M/s Mehta & Padamsey Surveyor Pvt. Ltd. to survey and assess the loss jointly with M/s Thapar Srinivasan & Kapoor Pvt. Ltd. Thereafter the two surveyors visited the respondents premises and surveyed the affected area in the presence of Shri D.K. Garg, the preliminary surveyor. Joint surveyors submitted their report on 14-6-1991 in which they indicated that though spontaneous combustion had taken place, it had not resulted in "fire". They reported and enumerated several factors on a consideration of which they came to the conclusion that "fire" had not resulted on account of spontaneous combustion or heating of the stock stored in the silo. The appellant, therefore, repudiated the claim of the respondent on the ground that damage to stock was not covered within the ambit of the insurance policy. The respondent thereafter filed the claim petition before the National Consumer Disputes Redressal Commission (for short "the Commission") and the Commission by its order dated 26-3-1992 allowed the claim of the respondent for a sum of Rs 61,65,902. The Commission also allowed compensation amounting to Rs 50,000 to the respondent on account of delay which had taken place in the settlement of their claim. The Commission also awarded interest @ 18% per annum on the amount awarded under the insurance policy w.e.f. 3-11-1990 (three months after the incident) till the date of the actual payment. It is against this judgment that the present appeal has been filed in this Court.

(5) MR M.L. Verma, learned Senior Counsel appearing on behalf of the appellant has contended that risk covered under the policy was for loss or damage by "fire" only to the stock of oilseeds insured with the appellant The "fire", it is contended, should have been caused on account of t