S.N. Kapoor, Presiding Member—Feeling aggrieved by the direction of the State Commission to pay Rs. 2,05,000 as damage/compensation along with interest @ 12% per annum on the above sum from 7.3.1994 and in case of failure to pay the sum within a period of three months, further interest @18% per annum was supposed to accrue; the Oriental Insurance Co. Ltd. has filed this appeal.

2. The necessary facts are being given in brief here-in-after. The complainant-respondent purchased a truck in the year 1988. He had a temporary permit to ply the vehicle from Assam to Tura and vice versa and that was valid upto 27.6.1993. The vehicle was insured for a sum of Rs. 2,50,000 for the period from 8.12.1992 to 7.12.1993 with the appellant-insurance company. The vehicle was hired by Ghasolia Roadways (Beltola) to carry 100 bags of ginger having total weight of 600 kg. from Dadangiri to Guwahati at a fare of Rs. 1,600. On 2.6.1993, the truck met with an accident near Rangi River bridge. The accident was allegedly caused due to sudden breakage of draggling and due to mechanical failure.

3. The complainant-insured preferred a claim. This claim was repudiated by the Insurance Company relying on cl