NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI CONSUMER COMPLAINT NO. NC/CC/201/2016 ECOFUEL SYSTEMS INDIA PRIVATE LIMITED PRESENT ADDRESS - B/101, BELLONA, 90, FEET ROAD, , GHATKOPAR(EAST), , MUMBAI-

400075 , .......Complainant(s)

Versus NATIONAL INSURANCE COMPANY LIMITED PRESENT ADDRESS - 3, MIDDLETON STREET, PRAFULLACHANDRA SEN SARANI, , KOLKATA, , WEST BENGAL-700 071 , .......Opposite Party(s)

BEFORE:

HON'BLE MR. JUSTICE SUDIP AHLUWALIA , PRESIDING MEMBER HON'BLE AVM J. RAJENDRA AVSM VSM RETD. , MEMBER FOR THE COMPLAINANT:

MR. SANTOSH PAUL, SR. ADVOCATE MR. SREENATH S., ADVOCATE MS. ADITI RAI, ADVOCATE MS. PRATIKSHA VERMA, ADVOCATE FOR THE OPPOSITE PARTY:

MR. JALADHAR DAS, ADVOCATE DATED: 26/09/2025

ORDER

JUSTICE SUDIP AHLUWALIA, MEMBER Brief facts of the case as per the Complaint are that, the Complainant had availed credit facilities of Rs. 24.5 crores from Dhanlaxmi Bank (Rs. 14.5 crores under Cash Credit limit and Rs. 10.00 crores under Letter of Credit limit) against goods stored in godowns, which were insured with the Opposite Party under a Standard Fire and Special Perils Policy for a sum insured of Rs. 15.00 crores. The Policy included an Agreed Bank Clause making any claim amount payable to the Bank, as a security for its advances. A premium of Rs. 3,85,327/- was paid for the said Policy. On 04.04.2013, a fire broke out at the insured premises, causing substantial loss to the Complainant’s stock and resulting in complete disruption of its business operations. The incident was immediately reported to the Opposite Party as well as the Police and Fire authorities. The Opposite Party appointed a Surveyor who, after submitting a Preliminary Report dated 20.04.2013, filed the Final Survey Report on 27.12.2013 assessing the net loss at Rs. 8,23,21,540/- against the claimed amount of Rs. 8,93,66,721/-. Despite furnishing all necessary documents and making continuous follow-ups, the Opposite Party failed to settle the Claim within a reasonable time. Throughout the delay, the Complainant made multiple visits to the Opposite Party's offices, and letters were sent by Dhanlaxmi Bank and Lovato, Italy (the Complainant’s Principal Supplier), highlighting the adverse financial consequences of the delay, including inability to honour Letters of Credit, loss of credibility, and freezing of the Complainant’s Bank Account. The Bank ultimately declared the account as NPA. The Complainant alleged that the Opposite Party had unjustly withheld the claim amount of approximately Rs. 9.00 crores for over 20 months, despite the mandate of IRDA (Protection of Policyholders’ Interests) Regulations, 2002. On 19.12.2014, the Opposite Party presented a Discharge Voucher for Rs. 7,75,60,980/- and insisted that it be signed in full and final settlement, without disclosing any basis for the deduction of Rs. 47,60,560/- from the assessed amount. Aggrieved with the deficiency of service and alleging unfair trade practice on the part of the Opposite Party, the Complainant filed the present Complaint and prayed that –

“a. Direct the 'Opposite Party' to pay an amount of Rs. 3,71,64,861/-. The amount is made up as follows:

i). loss due to interest and bank charges caused by the Opposite Party - Rs. 2,37,83,175/-

ii). Balance amount of the Claim along with interest @15% - Rs. 58,31,686/-

iii). Expenses incurred on behalf of Opposite Party for sorting out the salvage inviting tenders and sale to the approved bidder (Opposite Party derived the benefit of Rs. 1,17,04,761/-for the salvage) - Rs. 15,00,000/-

iv). Loss of Business cost by the Opposite Party - Rs. 50,00,000 v). Mental trauma and agony caused to the Managing Director of the Complainant - Rs.

10,00,000/-

vi). legal expense for the present Complaint - Rs. 50,000/-

b. Any other and further reliefs as this Hon'ble Commission may deem fit and proper in the facts and circumstances of the case.”

2. Upon notice, the Complaint was resisted by the Opposite Party by filing its Written Statement, contending that R