P.N. Kashalkar, Presiding Judicial Member—The complainant is a textile firm having textile business at Industrial Estate, Plot No.21, Building No.34 at Ichalkaranji and OP No. l & 2 are Insurance Company. OP No. l is the branch of OP No. 2. We will be referring both OPs herein after as OP Insurance Company.

2. The complainant Firm had taken Fire Insurance Policy from OP Insurance Company bearing No.11/153200/13546. The complainant had paid agreed premium to Insurance Company and Company accepted the liability to compensate losses for damages in the event of its textile goods, furniture, damaged in the fire. On 5.9.1997, at about midnight there was a fire due to electric short circuit in the textile shop of the complainant and textile goods and furniture lying in the said shop was burnt. Incident of fire was reported immediately to Police and Fire Brigade. Fire Brigade Officers tried to control and extinguish the fire but there was loss of goods to the extent of Rs.10,00,000. Complainant reported this incident of fire to the OP Insurance Company. The Company’s representative visited the premises of the complainant on 6.9.1997 and Shri S. S. Dange another officer assessed the loss. Thereafter complainant submitted fire insurance claim with requisite documents to the OP Insurance Company claiming actual loss of Rs.9,77,643 and requested OP Insurance Company to do the needful. However, despite many letters written, the OP Insurance Company did not bother to pay damages arising out of fire but sent letter as late as on 26.5.1998 wherein they mentioned that they had approved claim of Rs.7,55,000 and directed complainant to send consent letter to OP for processing the matter further. Complainant retorted and in reply told OP Insurance Company that it suffered actual loss of Rs.9,77,643 and therefore OP Company should reassess complainant’s damages and approve full claim. Complainant under pressure of circumstances agreed to accept the amount of Rs. 7,55,000 under protest. Complainant requested OP Insurance Company to furnish copy of surveyor report but it was not given copy thereof. According to complainant, it had taken cash credit advance facility from Ichalkaranji Mahila Sahakari Bank Limited to the extent of Rs. 5,00,000 and Bank used to give cash credit facility of 50% of the total stock available with the complainant firm.

3. According to complainant Insurance Company approved insurance claim finally and sent letter dated 11.8.1998 regarding approval of their claim for Rs. 7,53,104 and requested complainant to sign the voucher and send it back to OP Insurance Company so as to issue the cheque. Complainant signed the said voucher and sent it back to OP Insurance Company with the hope that he would get enhanced claim of Rs.9,77,643 from OP Insurance Company. However, complainant was shocked to know from their Bank by letter dated 17.9.1998 that Bank had sent two proforma one in the name of Mutha Textiles and another in the name of Praveen Textiles and requested complainant to withdraw unconditionally his protest letter dated 31.7.1998 and requested complainant to send proforma letter on their letter head with seal and signature to the Bank. According to complainant OP Insurance Company forced him to withdraw protest letter unconditionally as a condition to approve amount of insurance claim of Rs.7,53,104 as a full and final settlement of claim lest they threatened to withhold the payment. The letter of OP dated 26.10.1998 in that behalf is illegal and bad in law asserts complainant. Complainant then sent notice on 31.10.1998 calling upon OP to pay approved amount with interest at the rate of 21% per annum but O.P. failed or neglected to pay the approved amount. Thus OP illegally withheld payment of insurance claim to it by adopting unfair trade practice and by not giving approved claim and thereby complainant pleaded that OP committed deficiency in service and therefore it prayed that OP should be directed to pay Rs.9,77,643