Mr. Justice G. Balagangadharan Nair, President— The complainant is a registered firm with its Head Office at Cannanore engaged in the manufacture and sale of wooden sizes and frames etc. The Opposite Party is an Insurance Company engaged in the business of General Insurance.

2. On 28.10.1989 the complainant insured with the Opposite Party its stocks of logs & sawn timber kept in its Match factory and yard of the plywood Factory at Pappinisseri, called Purushothamam Goculdas Plywood Co., under Policy No. 1176080100499 for Rs. 14,00,000/ - for a period of one year from 1.11.1988 to 31.10.1989.

3. On 14.7.1989 a fire broke out in the Company’s factory at Pappinisseri where the Company’s stock of timer logs & sawn timber were kept, causing extensive damages to the plywood works and the logs etc. The incident was immediately reported to the Manager of the Opposite party’s branch office at Cannanore by letter dated 17.7.1989.

4. The loss caused has been assessed by the Kerala Fire Fighting Force at Rupees six lakhs for the building and materials stocked there.

5. The value of the stock of timber as on 30.6.1989 had been checked and assessed by the Indian Bank Officers at Rs. 6,88,675/-. On verification of the stock as on 31.7.1989 it was found that, out of 529.74 cums. of sawn timber kept at pappinisseri, 451.207 cums valued at Rs. 3,49,685/- were lost in the fire accident on 14.7.1989.

6. Thereafter the complainant and the Indian Bank jointly submitted the claim on 19.3.1990 in the prescribed form to the Opposite Party’s branch office at Cannanore for Rs. 3,00,000/-.

7. On 1.2.1991 the Divisional Manager of the Opposite Party, wrote to the complainant asking for the Police & Fire Brigade Reports and to make available for perusal the purchases and sale records

8. On receipt of the letter the complainant forwarded the reports of the Police & Fire Brigade and also conveyed the willingness to produce the books required at the office of the Opposite Party in Cannanore if so advised.

9. Thereafter two members of the Opposite Party’s staff visited the plywood works and the complainant’s office and wanted the complainant to make available the Balance Sheet and Profit & Loss Account. The complainant hence wrote to the Opposite Party on 1.4.1991 promising to intimate it on receipt of the Balance Sheet and Profit & Loss Account from the Auditors whose office was at Coimbatore. Thereafter the complainant wrote to the Opposite Party’s Divisional Manager at Cannanore on 18.4.1991 stating that the Balance Sheet and Profit & Loss Account were ready for his verification. Again two members of the Opposite Party’s staff visited the complainant’s office and verified the same.

10. In spite of repeated demands even personally the Opposite Party has not settled the claim.

11. The complainant is put to considerable loss on account of the unaccountable and unreasonable delay in the settlement of the claim and hence is constrained to make the complainant. The complainant wound up the claim asking this Commission to pay Rs. 3,00,000/-.

The version of the Opposite Party :

(The complainant has filed another statement by way of reply to the versions of the Opposite Party. That can be touched upon after noting the reply statement.)

(i) The complaint is bad for misjoinder. The complaint is not maintainable against the Opposite Party since the claim put forward by the complainant has been thoroughly probed, surveys conducted by the real insurer and “it is learnt that the process of settlement is under way by the Oriental Insurance Co. Ltd., who actually insured the risk occured to the complainant on 14.7.1989.”

(ii) The complaint is bad for non-joinder of parties; The Indian Bank, Cannanore is also a necessary party.

(iii) Averments in paras 1 to 3 are admitted and the averments in paras 4 & 5 are put to proof.

(iv) Averments in para 6 are correct to the extent that a fire broke out within the Saw Mill on 14.7.1989. The allegation that extensive damage was caused by fir