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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Ram Surat Ram Maurya, Presiding Member
M/s. R.K.G. International Ltd.
and Anr. – Complainants
versus
Bajaj Allianz General Insurance Co. Ltd.
and Anr. – Opp. Parties
Consumer Case No.160 of 2008
Decided on 6.1.2022
(A) Consumer Protection Act, 1986 – Section 21[Consumer Protection Act, 2019 – Section 58] – Services – Insurance – Repudiation of Claim – Shortage in weight of consignment / Damaged condition – Compliant filed seeking claim for shortage in weight / damage caused to consignment – Whether shortage of the material as claimed by the Insured stands proved – The findings of the Surveyors and the Insurer that the shortage of the material as claimed by the Insured was not proved does not suffer from any illegality – Thus, in the Certificate of Kandla Port Trust (Annexure-A-11), shortage of 10 Steel Plates has been shown. Some of the Weighment Certificates (Annexure-A-11) are unsigned and unstamped – In the absence of any certificate that how many weighment certificates were issued for the whole cargos, shortage cannot be determined on its basis – Also, in the report of Gupta & Associates (Assessors) Pvt. Ltd. dated 01.02.2007 (Annexure-A-15) shortage of 10 HR Steel Plates and 98.325 MTs of HMS Scrap were shown – Further, addendum dated 01.01.2008, quantity of HMS Scrap was shown as 99.735 MTs and in Bill of Lading [Annexure-A-3 (page-29)], HMS Scrap was shown in bulk and not in number. Therefore on facts, certificate of Kandla Port Trust dated 05.04.2007, does not corroborate with the report of Gupta & Associates (Assessors) Pvt. Ltd. in which it has been mentioned that there was short landing of HMS Scrap. [Para 7]
(B) Consumer Protection Act, 1986 – Section 21[Consumer Protection Act, 2019 – Section 58] – Services – Insurance – Whether report of second Surveyor which stated that he was not permitted to verify the damaged materials, is illegal – When the consignments were brought to Faridabad second Surveyor was appointed to verify and assess the loss of the damaged materials – The Insured in his letter dated 14.03.2007 (Annexure R-10) written to second surveyor has admitted that damage materials were sold before verification of second surveyor. The Insured have not brought on record, the papers relating to the amount realised from the sale of damaged materials – Thus, report of second Surveyor that he was not permitted to verify the damaged materials, cannot be held to be illegal – Repudiation of Claim held proper, Compliant dismissed.
(C) Consumer Protection Act, 1986 – Section 21[Consumer Protection Act, 2019 – Section 58] – Services – Insurance – repudiation of Claim – Quantity of damaged matrial if stands proved – Before this Commission also the complainants have not filed any paper showing the sale price realised from the damage materials – Thus in such circumstances, the quantity of damaged material is not proved nor is it proved that any CR sheet were sold for lesser price to prove that it were damaged than its actual price in market. Therefore, from the evidence on record it is also not proved that any CR sheet was damaged and what was the actual quantity of the damaged sheets. Claim mitigation charges are also not payable inasmuch as the damaged material is not proved. [Para 8].
Result: Complaint dismissed.
ORDER
Ram Surat Ram Maurya, Presiding Member.—Heard Mr. Manoj Ranjan Sinha, Advocate, for the complainants and Mr. Ramesh Kumar, Advocate, for the opposite party.
2. This complaint has been filed for directing Bajaj Allianz General Insurance Company Ltd. (the Insurer) to pay (i) Rs.20379745.68/- with interest @ 24% per annum, under Policy No. OG-07-1103-1001-00000016 (ii) Rs. 25/- lacs as compensation for mental torture and harassment (iii) Rs.5/- lacs as the cost of litigation and (iv) any other relief which may deemed fit and proper in the circumstances of the case.
3. The facts, as stated in the complaint and emerged from the documents attached with the complaint, are as follows:-
(a) M/s. Mauria Udyog Ltd. (the Insured) was dealing in import of various Ferrous and Non-Ferrous metals for last four decades and importing all kinds of metals from all over the world. He enjoyed very good reputation in the market. The Insured and M/s. Jotindra Steel & Tubes Ltd. entered into purchase contracts on 09.05.2006 with an overseas supplier, namely M/s. Global Steel Philippines (SPV-AMC) Inc. for supply of 5502.251 MTs of steel, including CR Coils, CR Sheets, HR Sheets, Hot Rolled Non-Alloy Steel Plates and Heavy Melting Steel Scrap. Above named supplier issued 11 numbers of Invoices, relating 5502.251 MTs of steel on 30.05.2006.
(b) Bajaj Allianz General Insurance Company Ltd. (for short the Insurer) is an Insurance Company, engaged in the business of providing insurance services of different nature. M/s. Mauria Udyog Ltd. (the Insured) obtained Marine Cargo Import Sea Voyage Policy i.e. Policy No. OG-07-1103-1001-00000016, of the aforementioned consignments, on the basis of 11 Invoices bearing Nos.513 to 523, on 02.06.2006. Every invoice contained (i) Description of the goods, (ii) Quantity in metric tonnes, (iii) Number of pieces, (iv) Net price and (v) Total price. The Insurer charged premium of Rs.123465/- on the basis of price mentioned in the invoices and insured the cargos in transit from Philippines to Faridabad, India (warehouse to warehouse) against loss, damage, liability or expenses, for sum of Rs.100000204/-. A chart, giving details of consignments was attached with Insurance Policy, which included 499.775 MTs. and 499.940 MTs. Heavy Melting Steel Scrap of M/s. Jotindra Steel & Tubes Ltd.
(c) Above cargos were securely packed and loaded on the vessel MV THANH SON VOY 06-10 during 14.06.2006 to 26.06.2006, at sea port GSPI Private Port, Iligan City, Philippines, on the basis of Bill of Lading Nos. SPS-06-38/2006 to SPS-06-48/2006. Every Bill of lading contained (i) Description of the goods, (ii) Quantity in metric tonnes, (iii) Number of pieces. M/s. Mauria Udyog Ltd. (the Insured) entered into high sea sale agreement dated 11.07.2006, for selling 499.835 MTs, 499.935 MTs., 499.845 MTs CR sheets and 460.616 MTs. Heavy Melting Steel Scrap and 499.956 MTs Hot Rolled Non Alloy Steel Plates to M/s. R.K.G. International Pvt. Ltd. M/s. Jotindra Steel & Tubes Ltd. also entered into high sea sale agreement dated 11.07.2006, for selling 499.775 MTs. and 499.940 MTs. Heavy Melting Steel Scrap to M/s. Mathura Udyog Ltd.
(d) The vessel reached to Kandla Port, Kutch, Gujarat on 18.07.2006. The Insured appointed M/s. Flamingo Shipping & Forwarder Pvt. Ltd. Gandhidham as his Clearing and Forwarding Agent, who engaged Gupta & Associates (Assessors) Pvt. Ltd. to supervise and tally the packages of steel cargo, discharged from the vessel. During discharge of the cargos from the vessel, they noticed that some of the cargos were damaged. On information, the Insured vide email dated 21.07.2006, requested the Insurer to appoint a Surveyor, for survey of the damaged consignment. The Insurer appointed G.P. Dave & Sons, Jamnagar, on 22.07.2006, for survey and assessment of the loss. The Surveyor inspected Kandla Port on 22.07.2006. On 25.07.2006, the Surveyor directed the Clearing and Forwarding Agent to segregate of damaged cargos, at the
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