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KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Justice Shri. P.Q. Barkathali, President and Shri. V.V. Jose, Member
WESTERN INDIA PLYWOODS LIMITED - Appellant
Versus
ORIENTAL INSURANCE COMPANY LTD. - Respondent
CC No. 13 of 2012
Decided on : 03-05-2017
M/S Vazhuthacadu R. Narendran Nair, Moidu Ahammed Nissar, C.R. Subramanian and Others, Advocates, for the Complainant; Sri. Varkala B. Ravikumar, Advocate, for the Opposite Parties
The main legal point established in the judgment is that the complainant company is considered a consumer under the Consumer Protection Act and had insurable interest in the materials destroyed in the fire, leading to the court's decision in their favor.
Headnote:
Insurance Claim - Fire Incident - Consumer Protection Act - [COMPLAINT] - [INSURANCE CLAIM, FIRE INCIDENT] - [Consumer Protection Act, Section 2(1)(d)] - The court held that the complainant company is a consumer as defined under section 2(1)(d) of the Consumer Protection Act, as the policies were taken not for business purposes but to cover the goods available. The court also analyzed the location of the fire incident and the insurable interest of the complainant company, ultimately ruling in favor of the complainant and directing the opposite parties to pay the claimed amount with interest and costs.
Fact of the Case:
Complaint filed by a company directing the insurance company to pay for the loss sustained due to a fire incident in their plywood factory premises, along with compensation and cost.
Finding of the Court:
The court found that the complainant company is a consumer under the Consumer Protection Act and had insurable interest in the materials destroyed in the fire. The court also determined the amount of loss sustained by the complainant and awarded compensation and costs accordingly.
Issues: 1. Maintainability of the complaint 2. Ownership of the site of the fire incident 3. Deficiency of service by the opposite parties 4. Entitlement of the complainant to reliefs
Ratio Decidendi: The complainant company was considered a consumer under the Consumer Protection Act, and the court found that they had insurable interest in the materials destroyed in the fire. The court also relied on various documents and reports to establish the ownership of the site of the fire incident, ultimately ruling in favor of the complainant.
Final Decision: The complaint was allowed in part, and the opposite parties were directed to pay the complainant the claimed amount with interest and costs.
JUDGMENT
Justice Shri. P.Q. Barkathali, President.—This is a complaint filed by the complainant, company directing the opposite parties, insurance company to pay to the complainant Rs.99,66,853/- being the loss sustained by them on account of an incident of fire occurred in their plywood factory premises along with compensation and cost.
2. The case of the complainant as detailed in the complaint in brief is this:- Complainant is M/s Western India Plywood Limited, a company registered under the Indian Companies Act represented by its Managing Director, Mr. P.K. Mohammed. The complainant company is engaged in the manufacture of plywoods, hard boards, furniture etc and as its factory at Baliapatam, Kannur District, Kerala. Complainant Company used to insure the factory, stock etc under various heads with the opposite party, insurance company. Complainant insured the stock etc of the company with the opposite party, insurance company under two fire policies. Policy No.441600/11/2008/102 is valid for the period from 2.8.2007 to 1.8.2008 covers 9.5 crores. Policy No.441600/11/2007/241 is valid for the period from 1.1.2007 to 31.12.2007. On December 01, 2007 at about 4.30 am a fire broke out in a shed in the factory situated in resurvey No.5/1 of Valapattanam Amsom. The entire timbers including stock in process were lost in the fire. The complainant submitted the claim before the opposite party insurance company on December 14, 2007 claiming a total sum of Rs.99,66,853/- being the value of the stocks damaged. Complainant also claimed an expense of Rs.50,000/- towards the fire fighting expenses. The opposite parties deputed the surveyor who submitted a report on July 19, 2008 stating that the fire affected shed belonged to M/s Kohinoor Saw Mills. He has also reported that there was under insurance, lack of loss etc. On a request made by the complainant a joint inspection was conducted by the representatives of opposite party and the complainant company on September 25, 2008. At the time of the said inspection opposite parties and the surveyor were convinced the fire affected goods and property belonged to the complainant company. Surveyor requested for additional documents to show that property belonged to the complainant company which were given to him. The surveyor issued a second report stating that Complainant Company has no insurable interest in the goods lost. Thereafter one Mr. K.A. Gopal, Advocate, Tirur was deputed by the opposite parties to look into the matter and submit a report. On March 3, 2011 complainant received a letter from the opposite parties stating that their claim has been repudiated. Repudiation by the opposite parties of the insurance claim is illegal and without any valid reasons which amounts to deficiency of service. Therefore complainant filed this complaint directing the opposite parties to pay to the complainant Rs.99,66,853/- along with compensation and cost.
3. Opposite parties 1 to 3 are M/s Oriental Insurance Company Limited. They in their version raised the following contentions. The existence of the two policies mentioned in the complaint is admitted. The incident of fire is also admitted. Complainant Company had no interest over the place of fire and the stock destroyed in fire. The allegation in the complaint is that the building wherein the fire occurred is in survey No.5/1 of Valapattanam is false. The incident occurred in building No. VP-1/221 situated in survey No.5/2 and 5/3 of Valappattanam village which belongs to Kohinoor Saw Mills. Police records also show that the fire affected building is VP/1-221. That being so these opposite parties are perfectly justified in repudiating the claim of the complainant. That apart as per the trading account of Western India Plywoods Limited as on November 30, 2007 the total timber stock was only Rs.57.47 lakhs. The value of the same stock physically verified by the surveyors in the fire affected building was for Rs.58.75 lakhs. Therefore it has to be p
