IMPORTANT POINT
Corroboration of Evidence – The surveyor is an expert and its report stands on the footing of expert evidence and has to be corroborated with other evidence on record, in order to examine bonafide / malafide of the Surveyor.

ORDER

Ram Surat Ram Maurya, Presiding Member.—Heard Mr. Aman Preet Singh Rahi, Advocate, for M/s. Balaji Textiles and Dr. Sudhir Bisla, Advocate, for New India Assurance Company Ltd.

2. M/s. Balaji Textiles filed Consumer Complaint No.26 of 2010, for directing New India Assurance Company Ltd. (the Insurer) to pay (i) balance insurance claim of Rs.6500000/- with interest @12% per annum, with monthly rest, under the insurance policy (ii) Rs.10/- lacs as compensation for mental torture and harassment (iii) Rs.3/- lacs as the cost of litigation and (iv) Rs.50000/- as expenses incurred in preparation of photographs, debris sheet and map, etc. State Commission, by impugned order dated 07.11.2014, allowed the complaint and directed New India Assurance Company Ltd. to pay (i) balance insurance claim of Rs.5908872/-, (ii) Rs.1/- lac as compensation and (iii) Rs.11000/- lacs as the cost of litigation. The Insured and the Insurer both have filed their separate appeals. As these appeals arise out of the same order passed in one complaint as such, these appeals were consolidated and heard together.

3. The facts, as stated in the complaint and emerged from the documents attached with the complaint, are as follows:-

(a) M/s. Balaji Textiles (the Insured) was a sole proprietorship concern and engaged in wholesale business of ladies suits and clothes at Bathinda, from October, 2008. The Insured had cash credit facility up to Rs.24/- lacs from Canara Bank Bathinda.

(b) New India Assurance Company Ltd. (for short the Insurer) is a public insurance company, engaged in the business of providing insurance services of different nature. M/s. Balaji Textiles (the Insured) obtained Standard Fire and Special Peril Policy vide Cover Note No. 143291, (Policy No.360601/11/09/11/00000592) from the Insurer through Canara Bank, valid from 29.07.2009 to 28.07.2010, sum insured was Rs.65/- lacs, covering risk on stock of all kinds of cloths, suit, dress material, saree and/or pieces good and/or other goods of insured whist stored and/or lying in the shop, built of A class construction. It was alleged that Canara Bank was Development Officer cum agent of the Insurer.

(c) On the intervening night of 17/18.10.2009, fire was broke out in the shop at first floor. Ramesh Kumar, the husband of Smt. Robina, the proprietor, had his wholesale shop of ladies garments at ground floor, in the name of M/s. Goyal & Company. Sandeep Singh and Varinder Singh, who were living in the neighbourhood of the shop, noticed the fire at about 2:10 AM. They informed Ramesh Kumar, the husband of Smt. Robina, the proprietor, who informed Fire Service Station Bathinda, from where, two fire tenders were deputed on the spot, which controlled the fire, after hectic efforts. But the fire caused extensive damages in the two shops. The Insured informed the local police about the fire incident, where it was registered vide DDR No.10 dated 18.10.2009.

(d) The Insured informed the Insurer regarding the incident of the fire in the shop, on telephone on 18.10.2009 and in writing on 20.10.2009. The Insurer appointed M/s. Mittal Surveyor Pvt. Ltd., Bathinda, on 18.10.2009, for survey and assessment of the loss. Mr. Parmod Mittal, the Surveyor inspected the shops on 18.10.2009, 19.10.2009 and 26.10.2009 and submitted his preliminary report dated 05.11.2009, in which, he had mentioned that the fire was devastating in nature and damaged the entire stock of cloths at first floor. The stocks at ground floor were also badly burnt but large quantity of stocks had its physical entity. Cause of fire was not known. However, the Insured suspected from electric short circuit, originated from first floor, near the generator set.

(e) The Surveyor vide letter dated 19.10.2009 demanded the papers from the Insured i.e. Claim Form, Fire Brigade Report, Police Report, Newspaper reports, Map, Statement in writing about expected cause of fire and loss, Statements of neighbours, Bank’s statement of stock, Bank stat