FA/4/2015

For the Appellant         : Mr. Aman Preet Singh Rahi, Advocate

For Respondent-1        : Mr. Rajesh K. Gupta, Advocate

For Respondent-2       : Mr. Himanshu Munshi, Advocate

FA/417/2015

For the Appellant        : Mr. Rajesh K. Gupta, Advocate

For Respondent-1        : Mr. Mr. Aman Preet Singh Rahi, Advocate

For Respondent-2       : Mr. Himanshu Munshi, Advocate

1.      Heard Mr. Aman Preet Singh Rahi, Advocate, for M/s. Goyal and Company and Mr. Rajesh K. Gupta, Advocate, for United India Insurance Company Ltd. and Mr. Himanshu Munshi, Advocate, for Indian Bank. 

2.      M/s. Goyal and Company filed Consumer Complaint No.25 of 2010, for directing United India Insurance Company Ltd. (the Insurer) to pay (i) balance insurance claim of Rs.7520335/- with interest @18% per annum, with monthly rest, under two insurance policies (ii) Rs.10/- lacs as compensation for mental torture and harassment (iii) Rs.3/- lacs as the cost of litigation and (iv) Rs.50000/- as  expenses incurred in preparation of photographs, debris sheet and map, etc. State Commission, by impugned order dated 07.11.2014, allowed the complaint and directed United India Insurance Company Ltd. to pay (i) balance insurance claim of Rs.5908872/-, (ii) Rs.1/- lac as compensation and (iii) Rs.11000/- lacs as the cost of litigation. The Insured and the Insurer, both have filed their separate appeals. As these appeals arise out of the same order passed in one complaint as such, these appeals were consolidated and heard together.   

3.      The facts, as stated in the complaint and emerged from the documents attached with the complaint, are as follows:-

(a) M/s. Goyal and Company (the Insured) was a sole proprietorship concern and dealing in wholesale business of ladies suits and clothes at Bathinda. The Insured had cash credit facility up to Rs.10/- lacs from Syndicate Bank Bathinda, which was subsequently enhanced to Rs.20/- lacs. Later on the Insured obtained cash credit facility from Indian Bank, Bathinda from 23.12.2008 and closed its account in Syndicate Bank, which was later on enhanced to Rs.30 lacs. 

 (b)    United India Insurance Company Ltd. (for short the Insurer) is a public insurance company, engaged in the business of providing insurance services of different nature. M/s. Goyal and Company (the Insured) obtained Shopkeepers Insurance Policy vide Cover Note No. 68565, for a sum of Rs. 10/- lacs on 06.11.2007. It was renewed vide Cover Note No.453425, (Policy No.200400/48/08/34/00000860) on 10.11.2008, by the Insurer through Syndicate Bank, valid from 11.11.2008 to 10.11.2009, sum insured was Rs.25/- lacs, covering risk of Fire & Allied Perils, on stock of all kinds of cloths in trade, in