ORDER

1.      Heard Ms. Sukruta A. Chimalker, Advocate, for the complainant and Mr. Samir Dawar, Advocate, for the opposite party.

2.      Navinya Shipping Services Private Limited (the Insured) has filed above complaint, for directing IFFCO Tokio General Insurance Company Limited (the Insurer) to pay (i) Rs.40000000/- with interest @12% per annum from 23.06.2015 till the date of payment, towards insurance claim; (ii) Rs.one lakh, as litigation costs; and (iii) Any other relief, which is deemed fit and proper in the facts of the case.

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

(a)     Navinya Shipping Services Private Limited (the Insured) was a company, registered under the Companies Act, 1956 and engaged in the shipping business since 2010. The Insured used to operate maximum cargos in west coast of India for river minor ports. The Insured purchased the vessel ‘Costal Pride’ and obtained its Certificate of Indian Registry on 18.02.2013. IFFCO Tokio General Insurance Company Limited (the Insurer) was an insurance company and used to provide insurance services to the general public. The Insured obtained “Marine Hull Insurance Policy” No.21891157 of the vessel ‘Costal Pride’ for a period of 15.11.2014 to 14.11.2015, for a sum insured of Rs.40000000/-, for hull and machinery. Insured obtained Indian River-Sea Vessel Safety Certificate dated 13.05.2015 & Certificate of Class-BOM14P639 dated 13.05.2015 of above vessel.

(b)     The vessel ‘Costal Pride’ was loaded about 1960 metric tonnes cement in bags and sailed from Porbandar port on 20.06.2015 at 16:30 hours (IST). While passing Danau on 22.06.2015, the ship was drifted due to adverse weather condition at that time, which resulted in shearing of air vent pipes of water ballast tank due to which water entered into ‘Port Side Ballast Tank’ and in ‘ Port Fuel Tank’. While the ship was at a distance of about 20 nautical miles from Tarapur in the gulf of Khambhat, about 10 nm South-West of Umargaon on 23.06.2015 at 00:30 hours, the Chief Engineer on the vessel reported that both the main Engines of the ship failed due to contamination of the diesel with water. About 15 minutes thereafter Auxiliary Engine No.3 also stopped and there had become total blackout. Chief Engineer opened air vent plugs of the fuel filters of Auxiliary Engine and found presence of water contamination in diesel. Then he opened the drain cocks of ‘Fuel Service Tank’ and found excess water contamination in starboard fuel tank. He then shut the valve of the starboard fuel tank. By using ‘Port Fuel Tank’, he started Auxiliary Engine at about 02:30 hours and resumed power supply. He reported to the Master that due to contamination of the diesel with water, it was not possible to start main Engines.

(c)     The Master dropped the Anchor. However, weather condition continued to become more adverse. The Master informed above conditions in the office of the Insured in morning of 23.06.2015. As both the Engines were stopped, the Insured realized that a Tug would be required. The Insured contacted Mr. Narayanan of M/s. KNK Shipping, Mumbai for a Tug, who reverted with a quote of Rs.30/- lacs, for Tug at about 11:45 hours on 23.06.2015. The Insured approved it and paid Rs.15/- lacs to Mr. Nagesh Bhode of M/s. Innovative Maritime Solution Pvt. Ltd., Mumbai, for the Tug, who confirmed that Tug would depart at 17:30 on 23.06.2015, for the place, where the ship was anchored. Around 20:30 hours, Gajendra Mishra, the owner of the Tug, informed that the Master of the Tug was not available and expressed his inability to depart the Tug. Around midnight of 23/24.06.2015, he informed that the Master of the Tug has come and boarded the Tug but due to Weather Warning Signal hoisted in the port of Mumbai, he did not depart. Capt. Edwin Das, the Master of Tug MERMAID-2, informed at 8:00 hours on 24.06.2015, that he was approaching Ferry Wharf (Baucha Dhakka) and would launch