IMPORTANT POINT
Both interest and compensation for mental agony cannot be awarded.

ORDER

Kumkum Rani, President.—This appeal under Section 41 of the Consumer Protection Act, 2019 has been directed against the impugned judgment and order dated 15.11.2022 passed by learned District Consumer Disputes Redressal Commission, Nainital (hereinafter to be referred as “The District Commission”) in consumer complaint No. 02 of 2020, styled as Sh. Pawan Singh Bisht Vs. Branch Manager, Tata AIG General SC/5/A/12/2023 Tata AIG General Insurance Company Ltd. and another 04.08.2025 Versus Sh. Pawan Singh Bisht Insurance Company Limited and another, wherein and whereby the consumer complaint was allowed and the appellants / opposite parties were directed to pay compensation of Rs. 13,50,000/- to respondent / complainant together with Rs. 50,000/- towards mental agony; financial loss and litigation expenses, within a period of 45 days’ from the date of impugned judgment and order, failing which the respondent / complainant was also held entitled to interest @8% p.a. on the amount of Rs. 13,50,000/- from the date of filing of the consumer complaint till payment.

2. The facts giving rise to the present appeal, in brief, are, as such that the respondent / complainant carries on the readymade business of Ulan under the name & style of M/s Kausani Gramin Udyog, which is the only source of livelihood for the complainant and his family. The complainant had obtained a “My Business My Choice” Package policy bearing No. 2270145704 for his enterprise from the appellant No. 1 for insured sum of Rs. 20,00,000/-, which was valid for the period from 03.03.2019 to 02.03.2020. During the currency of the insurance policy, fire broke out in the insured enterprise on 12.03.2019 at 8:30 p.m. due to short circuit, intimation whereof was immediately given by Sh. Gajendra Singh, Manager, Pratiksha Hotel to the Fire Brigade authorities, who with a great difficulty, were able to extinguish the fire. The F.I.R. of the incident was lodged with the P.S. Kausani on 13.03.2019. In the said incident of fire, fire broke out in 4 shops and the Fire Brigade authorities extinguished the fire in all the 4 shops at one time and submitted a joint report, wherein the estimated loss caused to the complainant’s shop was assessed as Rs. 18,00,000/-. The intimation of loss was given by the complainant to the insurance company and all the requisite documents including the documents SC/5/A/12/2023 Tata AIG General Insurance Company Ltd. and another 04.08.2025 Versus Sh. Pawan Singh Bisht sought by the surveyor of the insurance company, were duly submitted. On the date of loss, there was stock of Rs. 21,00,000/- in the insured enterprise. The complainant had availed loan from Canara Bank, Chanoda, Almora for his business and on the basis of stock report of the bank, had taken the insurance policy of Rs. 20,00,000/-. On 07.03.2019, the financier - bank had submitted the inspection report of stock, wherein the value of the remaining stock was shown as Rs. 22,00,000/- and after 5 days’ of the inspection, fire took place. However, the claim was not settled by the insurance company, which amounts to deficiency in service on their part. The complainant sent a legal notice dated 06.11.2019 through his counsel to the insurance company, which was duly served upon the insurance company, but inspite of that, the claim was not settled. Therefore, the consumer complaint was filed by the complainant before the District Commission, thereby seeking reliefs mentioned in the relief clause of the consumer complaint.

3. The appellants / opposite parties (insurance company) filed joint written statement before the District Commission and pleaded that on receipt of intimation of loss caused by fire dated12.03.2019, the insurance company deputed surveyor - Rakesh Kapoor & Co., who visited the insured premises. The complainant furnished a list of damaged garments along with their approximate value and submitted a loss of Rs. 24,00,000/-. On the basis of physical inspection of the premises in quest