ORDER

THIRU.N. RAJASEKAR, PRESIDING JUDICIAL MEMBER.

1. This appeal has been filed by the appellant/1st opposite party under section 15 read with section 17(1) (a) (ii) of the Consumer Protection Act, 1986 against the order of the learned District Commission, Theni made in C.C.No.71/2011, dated 03.07.2014, partly allowing the complaint.

2. For the sake of convenience and brevity, the parties are referred to here as they stood arrayed in the learned District Consumer Disputes Redresssal Commission Theni.

3. The first opposite party suffering by an order, first opposite party liable to pay a sum of Rs.4,72,879/-, and less the amount the first opposite party already paid as a compensation of Rs.3,18,371/- (Rs.7,91,250/- - Rs.3,18,371/- = Rs.4,72,879/-) with 8% interest and also to pay a sum of Rs.5000/- as cost to the complainant. Further, the first opposite party is directed to pay the amount to the complainant through the 2nd opposite party the amount should be deposited in the accounts belongs to the complainant. And dismiss the complaint against second opposite party. In the hands of the learned District Consumer Disputes Redressal Commission, Theni (hereinafter in short “District Commission”) have preferred this appeal before this Commission.

4. The case of the complainant’s is as follows: The complainant factory was started by the proprietor by obtaining loan from the second opposite party by hypothecating the goods and stocks. The factory is an agro based unit. It deals with coir and coir pith. As there was fire risk, the factory. The complainant insured factory and store with the first opposite party under the scheme STANDARD FIRE AND SPECIAL PERILS POLICY SCHEME on 04.02.2008.(mistakenly mentioned as year 1008). The policy number is 453701/11/2008/174. The building plan and machinery, furniture, fixtures and fittings, store - both raw materials and finished goods are kept in open place. The period of insurance begin from 00.00 hrs. on 07.02.2008 to Midnight of 06.02.2009. The factory got fire on 26.02.2008 and there was a damage and loss to the tune of Rs.15,00,000/-. An FIR was registered and the matter was intimated to the first opposite party. The machineries turned to ashes and the stocks were also burnt. The factory was inspected by the surveyor on 27.02.2008. After his inspection, the Opposite Party No.1 requested the complainant to produce the necessary documents along with claim application. The claim application was filed on 30.06.2008. The District Industries Centre General Manager had issued a certificate in respect of the stock burnt and their uselessness on 28.01.2009. The required certificates from Fire Station, Coir Board and other authorities were also furnished. The claim was made for Rs. 11,03,368/-. The first opposite Party failed to disburse the claim amount. The complainant made reminders through letters and calls. Due to fire, the factory was unable to be run and there stood an outstanding balance of nearly Rs.13,00,000/- with the second opposite party. So, the second opposite party issued SARFEASI NOTICE followed by the possession notice to the complainant.

After very many persuasions, the first opposite party sent a letter to the complainant stating that a cheque for Rs.3,18,377/- has been issued in favour of the second opposite party and requested the complainant to acknowledge the receipt of the same, on 16.06.2010. The complainant queried the fixation of the claim amount through a letter dated 01.07.2010. As there was no reply for it, the complainant issued a legal notice dated 12.08.2010 for the balance claim. In the reply, the first opposite party had stated that the claim was settled on 'Compromised basis’. It is a false statement given by the first opposite party. The second opposite party has not issued any reply. The Opposite Parties have colluded each other in settling the actual claim and due to their defi