The main legal point established in the judgment is that the petitioner cannot be held liable for the damage caused by the fire accident due to the inaction of the opposite party no.2 in challenging the survey report and the repudiation letter.

JUDGMENT :

Biswajit Mohanty, J.

This writ application has been filed with a prayer to direct opposite parties to settle the claim regarding damage caused at the petitioner’s mill on account of fire accident and to pay the said amount to the petitioner’s mill.

2. According to Mr. U.K. Samal, learned counsel for the petitioner, the case of the petitioner is that the petitioner mill had participated in Kharif Marketing Season 2013-2014 and had procured paddy for milling. The paddy so procured, were stored in the godown of the petitioner’s mill. As per Clause 23 of the agreement under Annexure-A/2 executed between the petitioner’s mill and Odisha State Civil Supplied Corporation Limited (opposite party no.2) for KMS 2013-14 it was specifically mentioned as follows:

“Clause-23 Insurance:-It is the responsibility of the Custom Miller for safe and scientific storage of paddy, rice keep under joint custody and gunny bags supplied by Corporation OSCSC head office on behalf of the custom miller shall take up Standard Fire Policy of the stock with nationalized insurance company as insurance against fire and allied perils for stocks. The Corporation shall not be responsible for any damage of stock due to fire and other natural calamities kept unscientifically and in safe manner. Custom miller will be responsible for storage/damage of paddy, rice and gunny bags due to happening of theft, burglary or other reasons not covered under Standard Fire Policy. The insurance premium shall be borne by the millers.”

As per the above agreement, the petitioner mill deposited the entire insurance premium with the opposite party no.2 and the said opposite party insured the entire paddy and rice stock of the petitioner’s mill with the National Insurance Company Limited (opposite party no.4). Due to heavy rain and flood, some paddy, rice and gunny packets kept in the mills premises, got damaged. This was informed by the ACSO-cum-Authorised Officer of opposite party no.2 to the Civil Supply Officer-cum-District Magistrate, OSCSC Ltd., Samablpur (opposite party no.3) on 8.8.2014 under Annexure-1 requesting him to take necessary action for settlement of the insurance claim. There he indicated about the quantum of the damage suffered by the mill in respect of the paddy, rice and gunny bags. In his turn, the opposite party no.3 wrote a letter to the Deputy General Manager (Finance) on the same day, i.e., 8.8.2014 vide Annexure-2 requesting for making necessary arrangement for deputing a surveyor of opposite party no.4 for settlement of claims in respect of the mill of the petitioner. There, the opposite party no.3 clearly indicated about the quantum of damage suffered by the petitioner’s mill. Accordingly, the Deputy General Manager (Finance) of opposite party no.2 vide his letter dated 11.8.2014 under Annexure-3 intimated the same to the Senior Divisional Manager of opposite party no.4.

While so on 17.9.2014, when the proprietor of the petitioner and his family members were away at Raigarh, after receiving the information that one of his family members had met with an accident, the petitioner’s mill and godown got substantially damaged due to fire accident on account of electric short circuit. Staff of the petitioner’s mill informed the said fact to the fire brigade and also to the ACSO and Authorized Officer the petitioner’s mill. The ACSO and Authorized Officer of the petitioner’s mill after receiving the telephonic message, rushed to the spot and found that fire brigade staffs busy in controlling the fire in order to save the balance portion of mill. According to him near about 45 to 50 per cent of paddy/rice at that time had already been burnt by fire. On the same date, i.e., 17.9.2014 vide Annexure-4 he intimated the matter to opposite party no.3 and requested him to pay a personal visit to the mill. On the same date, the opposite party no.3 vide Annexure-5 requested the ACSO & Authorised Officer of the mill to lodge an F.I.R. in the local police station immed