The definition of coverage in insurance policies must be adhered to strictly, particularly regarding the specification of property locations insured and the implications of their construction.

1. Heard Ms. Priya Kumar, Advocate and Mr. Tejas Chhabra, Advocate, for the complainant and Mr. Amit Kumar Singh, Advocate and Ms. Chubalemla Chang, Advocate, for the opposite party.

2. M/s. Mittal Cot Fab Private Limited (the Insured) has filed above complaint for directing the opposite party to pay (i) Rs. 2,12,47,665 with interest @24% per annum from 18.05.2003 till the date of payment, (ii) Rs. 50 lacs, as the compensation, for mental agony and harassment, (iii) Cost of the litigation and (iv) any other relief which is deemed fit and proper, in the facts and 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) The Insured was a company incorporated under the Companies Act, 1956 and engaged in manufacture and trade of cotton yarns, cotton spun & staple and fibre yarn in its factory situated at G.T. Road, village Sewah, district Panipat, Haryana. New India Assurance Company Ltd. (the Insurer) is a public sector Insurance company and used to provide different types of insurance services. The complainant obtained Policy No. 353900/11/02/00353, i.e. Standard Fire and Special Perils Policy, for a sum of Rs. 1,084.16 lacs, for the period of 9.6.2002 to 8.6.2003, from the Insurer. The policy covered risk of Rs. 110 lacs, on Stock of all kind of Cotton yarn / Raw cotton / Silk yarn / Polyester yarn / Acrylic yarn / Woollen yarn / All kind of waste, i.e. synthetic waste or cotton waste or other goods of like nature whilst stored or lying or arranged in insured factory built of first class construction, Rs. 74 lacs on complete Building occupied as cotton spinning unit and Rs. 801.6 lacs on complete Machinery as per list. Initially, the agent / employee of the Insurer supplied Cover Note No. 058304 dated 6.6.2002 to the Insured. By Endorsement No. 353900/11/02/30006 dated 14.6.2002, the clause “Reinstatement basis”, has been deleted and “depreciation basis” was inserted, as applicable for the Building and Machinery. The Insured obtained Cover Note No. 074895 dated 18.2.2003 (Policy No. 353900/11/02/01988), i.e. Standard Fire and Special Perils Policy, for a sum of Rs. 90 lacs, for the period of 18.2.2003 to 17.2.2004, from the Insurer, on Stock of all kind of Cotton Woollen yarn, wool waste, synthetic yarn, synthetic waste or comer or all kinds of waste or all kinds of yarn and other goods of like nature whilst stored or lying or arranged in insured building built of 1st class construction.
(b) On 18.5.2003 at 18:30 hours, which was Sunday and weekly holiday of the factory, fire broke out in the factory premises. Gulab Chand Rai, who was on duty as Security Guard, noticed smoke and flames billowing out of the shed, in which, step cleaning machines were installed. When he came to the place of fire, he found that the cotton stacked within the shed was on fire. Gulab Chand Rai immediately informed Munish Kumar, the Director of the company, who was present there and raised fire alarm. On which, the workmen present in the factory started fighting with the fire equipment present in the factory. The Insured informed Fire Service Station, Panipat, on telephone, from where, two fire tenders were sent on the spot. By the time, the fire tenders reached on the spot, the fire took devastating nature. Therefore, fires tenders from Gharonda, Karnal, Gannaur, Devi Lal Thermal Power Station, National Fertilizer Ltd. and Indian Oil Corporation were also called and they controlled the fire. The Insured informed the police on 19.5.2003.
(c) The Insured informed the Insurer on telephone about the fire on 18.5.2003. The Insurer instructed Ajay Mahajan, Panipat for preliminary survey. Ajay Ma