Mr. Justice S.K.M. Lodha, President — The complainant has filed this complaint under Section 12 read with Sec. 17(a)(1) of the Consumer Protection Act (“the Act” herein) before the State Commission on 17.6.91. The material facts for the disposal of the complaint are these:—

2. The complainant was then having its name as M/s. Ajay Paper Mills Ltd. It had taken Marine Cargo Inland Transport Insurance Policy in the name of its Spinning Mills (Orient Syntex) from opposite party (M/s. National Insurance Co. Ltd.) covering rail/road risk from anywhere in India to anywhere in India in respect of:—

(i) Yarns of all kinds packed in card board, cartoons and bags.

(ii) Cotton, man made fibre NCSW and like raw materials packed in FPIB bales.

(iii) Cotton raw material, man made fibre (NCSW) packed in loose bags.

In respect of item No.1, risk covered was upto Rs.12 crores. For item No. 2, risk covered was upto Rs.6 crores and for item No. 3 risk covered was for Rs. 1 crore. Thus all risk covered in respect of item Nos. 1, 2 and 3 was for Rs. 19 crores. This was Special Declaration Policy covering the period 16.4.1988 to 15.4.1989. The premium of Rs. 2,50,001/- was deposited against the premium amount vide policy No. 352003/ 4400139 (Prov.) issued on 6.10.1988. The complainant used to despatch goods to self for sale in the course of Inter-State by transfering documents of title. The goods despatched were meant for disposal outside the State/Sale in course of Inter-State trade. The goods mentioned in para 3 of the complaint were despatched from Bhiwadi (Rajasthan) to Bhiwandi (Maharashtra) through M/s. Jainsons Roadways. The complainant has alleged that during the currency of the insurance policy, fire broke out in the godown of the transporter M/s. Jainsons Roadways on 15.10.1988 and there was loss due to fire which was calculated as under :—

GR No. Date Quality No. of Bags Kgs. Rate Rs. Value Rs.

2880 4.10.88 32sNCSW/V. 48/52Slub dyed. 9 450/- 100/- 45,000/-

2881 “ -do- 6/15 300 100/- 30,000/-

75,000/-

2882 32sPV 48/52 Grasibow 6 300 110/- 33,000/-

2883 “ -do- 6 300 110/- 33,000/-

2884 “ -do- 9 450 110/- 49,500/-

2885 “ -do- 3 163 110/- 17,930/-

2886 “ -do- 7/15 110 110/- 34,430/-

1,67,860/-

2887 “ 32sPV 48/52 Olympic 9 450 105/- 47,250/-

2888 “ -do- 6/15 300/750 105/- 31,500/-

78,750/-

2889 “ 32s SF100% Slub Grey 5 250 60/- 15,000/-

2890 “ -do- 5 250 60/- 15,000/-

2891 “ -do- 5 250 60/- 15,000/-

2892 “ -do- 3/18 157/907 60/- 9,420/-

54,420/-

2893 “ 15s VSF 100% 5 250 50/- 12,500/-

2984 “ -do- 5 250 50/- 12,500/-

2895 “ -do- 5 250 50/- 12,500/-

2896 “ -do- 3 150 50/- 7,500/-

2897 “ -do- 3 131 50/- 6,550/-

2898 “ -do- 5 250 50/- . 12,500/-

Gr No. Date Quality No. of Bags Kgs. Rate Rs. Value Rs.

2899 4.10.88 -do- 5 250 50/- 12,500/-

2900 “ -do- 5 250 50/- 12,500/-

2902 “ -do- 5 250 50/- 12,500/-

2903 “ -do- 3 150 50/- 7,500/-

2904 “ -do- 3/47 148/2329 50/- 7,400/-

1,16,45/-

Grand Total: 126 6262 4,92,480

3. According to the complainant the goods at S. Nos. 1 to 7 had reached Bhiwandi at transporter’s place on 9.10.88 and goods at S. No. 8 on 12.10.88. In respect of item Nos. 1 to 8 the complainant lodged a claim for Rs. 2,74,280/- . The Insurance Company’s Western Regional Office, Bombay was intimated about loss vide letter dated 26.10.88. M/s. Mehta & Padamsy Pvt. Ltd., Bombay were deputed as Surveyor for survey of consignments in question. The complainant provided all the relevant information vide letter dated 27.10.88 and 9.2.89 to the Surveyor and Alwar Office of the Insurance Company was also apprised of the loss vide letter dated 29.11.88. Survey report dated 10.2.1989 was produced in which loss assessed was Rs. 2,74,280/- and after adding share of fire fighting expenses amounting to Rs. 115/- and deducting the cost of salvage, the net loss was assessed at Rs. 2,72,940/- . The survey fee was assessed at Rs. 2,090/- and share of expenses Rs. 50/- thu