ORDER

CC NO. 303 OF 2017

For the Complainant                :         Mr. Arvind Nayar, Sr. Advocate

Mr. K. Maruthi Rao, Advocate

                                                          Mr. C. Madhu Babu, Advocate

For Opp. Parties No.1 & 2       :         Mr.Yogesh Malhotra, Advocate

For Opp. Party No.3                :         Mr. Arjun Malik, Advocate

CC NO. 259OF 2018

For the Complainant                :         Mr. Sameer Abhyankar, Advocate

                                                          Mr. Akshay Joshi, Advocate

                                                          Ms. Vani V. Chhetri, Advocate

                                                          Ms. Nishi S., Advocate

                                                          Ms. Sugandh Rathore, Advocate

                                                          Mr. C. Madhu B., Advocate    

For Opp. Parties No.1 & 2       :         Mr.Vishnu Mehra, Advocate

For Opp. Party No.3                :         Mr. Arjun Malik, Advocate

ORDER

1.       As the facts and the dispute involved in the aforesaid two Consumer Complaints are same, they are disposed of by common order treating CC/303/2017 as the lead case.

2.       The Complainant is a cold storage and acts as a custodian for the agricultural produce stored by the farmers. The Complainant obtained a Standard Fire & Special Perils Policy No.566018111310000062 for a sum of Rs.14 crores (Rs.4 crores for building, plant & machinery and Rs.10 crores for stock) valid from 30.03.2014 to 29.03.2015 from National Insurance Company Limited. On 09.09.2014, vide endorsement No.566018111382100004, the sum insured was enhanced from Rs.14 crores to Rs.19.5 crores (Rs.5,50,000/- towards building, plant & machinery and Rs.14 crores towards stock). The insured stocks consisted of dry chilly, onion, potato, cashew nut, bengal gram, red gram, green gram, black gram, coriander, fruits, pulses, groundnuts and other agricultural products.

          The Complainant also took another Standard Fire & Special Policy No.463400/11/2015/70 on the stocks of mirchi, bengal gram, daal and all agricultural products for a sum of Rs.8 crores valid from 30.05.2014 to 29.05.2015 from Oriental Insurance Company Limited. The farmers used to take loans from the Bank by pledging their cold storage bonds issued by the Complainant. The Complainant signed as a guarantor for the farmers who took loan from the Bank. The Bank had also taken collateral securities from the Complainant apart from guarantor agreements. It was a common practice of all the cold storages to have an agreement with the bankers to give loan facility to the farmers on the guarantee and collateral securities of the cold storage.

          On 15.10.2014 at about 2.00 am, a major fire accident broke in the cold storage of the Complainant. The incident was immediately reported to the Police and A.P. State Disaster Response as well as the Fire Service Department and the local authorities. The Complainant also informed the Opposite Parties about the fire accident. Entire stocks got burnt in the fire and the building also completely collapsed. Deputy Electrical Inspector, Guntur, alongwith local electricity authorities, inspected the premises and conducted necessary investigation and enquiries. On 15.10.2014, the Opposite Parties appointed Mr. Y. Siva to conduct preliminary survey. On receipt of preliminary Survey Report, the Opposite Parties appointed M/s Comtec Surveyors for conducting final survey and assessment of loss. The Opposite Parties withdrew the said Surveyor and on 03.12.2014 appointed Mr. B. Nageswara Rao as Surveyor & Loss Assessor for assessment of loss. The Complainant submitted all documents sought by the Surveyor. The Complainant filed a claim before National Insurance Company Limited for Rs.13,98,39,112/- for loss of stocks and Rs.5,50,96,707/- towards building, plant & machinery. The Opposite Parties also appointed M/s Truth Labs for ascertaining the cause of fire. As the claim was