No material damage was proven as a result of flooding; hence repudiation of the insurance claim was valid.

1. Heard Ms. Namitha Mathews, Advocate, for the complainants and Mr. S.M. Tripathi, Advocate, for the opposite party.

2. M/s. Landmark Buildwell Pvt. Ltd. and M/s. Splendor Landbase Ltd. (the Insured) have filed above complaint for directing Royal Sundaram Alliance Insurance Company Limited (the Insurer) to pay (i) Rs. 2,71,21,164 with interest @24% per annum, from 26.3.2012 till the date of payment, as the insurance claim, (ii) Rs. 50 lacs, as the compensation for mental agony and harassment, (iii) Rs. 10 lacs as the cost of litigation; and (iv) any other relief, which is 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. Landmark Buildwell Pvt. Ltd. (complainant - 1) was a company, registered under the Companies Act, 1956 and engaged in construction of all types of buildings on contract basis, including multi - stories residential complex, institutional buildings, hospitals and large industrial projects. M/s. Splendor Landbase Ltd. (complainant - 2) was a company, registered under the Companies Act, 1956 and engaged in the business of development and construction of group housing and commercial complex. M/s. Splendor Landbase Ltd. (complainant - 2) undertook a project of commercial complex, namely Splendor Trade Tower at Sector - 65, Gurgaon, in the year 2009. M/s. Splendor Landbase Ltd. gave contract for construction work of Phase - 1 of the said project to M/s. Landmark Buildwell Pvt. Ltd. vide agreement dated 30.6.2009.
(b) Royal Sundaram Alliance Insurance Company Limited (the opposite party) is a Private Insurance Company and engaged in the business of providing different types of insurance services to the general public. The complainants obtained ˜ Contractors All Risk Insurance Policy No. EC00000950000100, for a sum of Rs. 8,85,20,000 for Material Damage and Rs. 41,20,000 for Third Party Liability, for the period of 11.7.2009 to 10.11.2010 from the opposite party, of the said commercial complex. The Insured also obtained another Workmen Compensation Insurance Policy from the Insurer.
(c) Phase - 1 of Splendor Trade Tower consisted two parts, i.e. Tower part, having three basements, ground floor plus seven stories and other was Lower rise Structure, having three basements, ground floor and first floor. The basements of both portions were connected with each other and had only one expansion joint. In Soil Testing Report, underground water level was found 10.5 meter below the natural ground level. The road in one side of the project was 2 meter high from natural ground level. After obtaining Soil Testing Report, excavation for Tower portion was done by Sapna Earth Movers and Lower rise Structure was done by complainant - 1, up to 12 meters deep from road level. Basement was constructed around June, 2009 to July, 2009 of Tower portion. In the portion of Lower rise Structure, TIE slab connecting isolated foundation / footings of different sizes for various columns and retaining walls were constructed. As per Soil Testing Report, possibility of underground water level rise was up to “8 meter and the foundation was designed as an inverted flat slab, capable to bearing ground water pressure up to 3 meter.
(d) Delhi and NCR region experienced a torrential rainfall during July, 2010 to September, 2010, which broke the rainfall record of previous 20 years. Total rainfall of 811.90 mm was recorded during July, 2010 to September, 2010. Due to continuous heavy rainfall, huge quantity of water along with soil gushed in the basement pit of the Project site up to the height of