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SUPREME COURT OF INDIA
AJAY RASTOGI, C.T. RAVIKUMAR, JJ.
Karnavati Veneers Pvt. Ltd. - Appellant
Versus
New India Assurance Company Limited And Others - Respondents
Civil Appeal No(s). 3893 of 2013
Decided on : 09-02-2023
Consumer Protection Act, 1986 – Section 23[Consumer Protection Act, 2019 – Section 67] – Insurance – Standard Fire and Special Perils Policy – Loss incurred in fire accident – Repudiation of insurance claim for alleged non-submission of required documents, affirmed by NCDRC – Surveyor’s report was not disputed by either of parties – Once that assessment has been made regarding loss/damage which took place due to fire and that was not disputed by respondent Company, repudiating claim was unfair and is not legally sustainable – Order passed by National Commission set aside – Respondent Company directed to make payment as assessed by Surveyor along with 8% interest. (Paras 5 16 and 17)
Facts of the case:
Instant appeal is directed against the judgment dated 3rd September, 2012 passed by the National Consumer Disputes Redressal Commission, affirming the repudiation claim of the appellant by letter dated 11th September, 2007.
Findings of Court:
Invoking condition no. 6(b) of policy for repudiation dated 11th September, 2007 was unsustainable in law for the reason that clause 6(b) only desires to submit necessary document for the purpose of assessment of claim regarding the loss/damages caused due to the fire which took place. Whatever the material documents available with the insured were indisputedly made available to the Surveyor who has made its own physical inspection in reference to the loss which took place due to fire on 20th October, 2006 and submitted its report on 1st June, 2007.
Result : Appeal allowed.
JUDGMENT :
Rastogi, J.
1. The instant appeal is directed against the judgment dated 3rd September, 2012 passed by the National Consumer Disputes Redressal Commission(hereinafter being referred to as the “National Commission”) affirming the repudiation claim of the appellant by letter dated 11th September, 2007.
2. The facts from which the controversy arises are that the appellantcomplainant is the private company which was engaged in the manufacture of veneers from the woods. The appellant took a standard fire and special perils policy(hereinafter being referred to as the “policy”) from the respondent. The New India Assurance Company Limited in the year 2001 which was renewed from time to time and the cover was renewed to the extent of Rs. 1,20,00,000/(Rupees One Crore Twenty Lakhs) from 7th October, 2006 to 6th October, 2007. It has come on record that with effect from 11th July, 2006, as per orders passed by Forest Department, the factory was sealed and manufacturing process was stopped. Consequent upon that, the power was also disconnected from 18th August, 2006 having no manufacturing activity thereafter. Unfortunately, devastating fire took place on 20th October, 2006 in the factory premises in which the appellant suffered huge loss. In consequence thereto, the appellant submitted claim under the policy but that came to be repudiated by the respondent by its communication dated 11th September, 2007 on the premise that the appellant has failed to submit the required documents which is in breach of condition no. 6(b) of the policy.
3. Letter dated 11th September, 2007 pursuant to which the claim was repudiated by the respondent Insurance Company is reproduced as under:
| “THE NEW INDIA ASSURANCE COMPANY LIMITED 214217, AMARSINHJI SHOPPING MALL TOWER ROAD, HIMATNAGAR 383001 | |||
| 11th September 2007 | |||
| WITHOUT PREJUDICE | |||
| To M/S. Karnavati Veneers Pvt. Ltd. At: VillageOran At & Po: Tajpur Kui N.H.8 Taluka Prantij Dist. Sabarkantha Dear Sirs, | BY REGISTERED A.D. | ||
| “Re: Policy no. 212103/11/06/11/00001152 Claim no: 212103/11/06/11/90000017 Dt. Of loss: 20.10.2006 | |||
| With reference to the above claim we have to state that your claim for damages due to alleged fire occurred in the factory on 20.10.2006. M/s. A.M. Patel Surveyors Pvt. Ltd. was appointed to assess the loss. M/s. A.M. Patel Surveyors Pvt. Ltd. had written several letters for the compliance for the requirements/clarifications/documents from time to time. At least the surveyors released their report on 01.06.2007 on the basis of available papers/documents/information. We have also issued a final notice to you on 12.07.2007 to comply with the requirement/documents/information asked by the surveyor but you have not submitted the documents/requirements/information as required by the surveyors. Surveyors have specifically mentioned in their reply dt. 9th August 2007 that they are not satisfied with the compliance from the insured’s end. Non-submission of required documents is a breach of policy condition no. 6(b) of Standard Fire & Special Perils policy which reads as under: “The Insured shall also at all times at his own expenses produce, procure and give to the company all such further particulars, plans, specification books, vouchers, invoices, duplicates or copies thereof, documents, investigation reports (internal/external), proofs and information with respect to the claim and the origin and cause of the loss and the circumstances under which the loss or damage occurred, and any matter touching the liability or the amount of the liability of the company as may be reasonably required by or on behalf of the company together with a declaration on oath or in other legal form of the truth of the claim and of | |||
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