ORDER

AVM J. RAJENDRA, AVSM, VSM (RETD.), MEMBER

1.      The present First Appeal has been filed under Section 51(1) of the Consumer Protection Act, 2019 (hereinafter referred to as “the Act”) against the Order dated 02.07.2021 passed by the State Consumer Disputes Redressal Commission, U.T. Chandigarh (hereinafter referred as “the State Commission”), in Consumer Complaint No. 16 of 2021, wherein the Complaint filed by the Appellant was dismissed in limine for want of jurisdiction.

2.      For the sake of Convenience, the parties in the matter being referred to as mentioned in the Complaint before the State Commission. “M/s. Nirmal Spinning Mills Pvt. Ltd.” is identified as the Complainant/Appellant. "National Insurance Co. Ltd. & Ors." are referred as the Respondents/Opposite Parties in this matter.

3.      There was a delay of 127 days in filing the Appeal. The State Commission passed the impugned order on 02.07.2021. While the period for filing Appeal lapsed on 31.07.2021, the present Appeal was filed on 06.12.2021. In adherence to orders of the Hon’ble Supreme Court’s Suo Motu Writ Petition (Civil) No. 3 of 2020 in re: Cognizance for Extension of Limitation the present Appeal is treated as having been filed within limitation.

4.      Brief facts of the case as per the Complainant are that, the Complainant paid the premium of Rs.2,43,120/- for two insurance policies No.404400111810000146 and 404400111810000112 valid for the period from 25.03.2019 to 24.03.2020 towards insurance of plant & machinery and stocks for Rs.14 Crores and Rs.1.30 Crores respectively, kept in the premises of the insured where the Complainant was running the business. The stocks suffered damage and loss to the tune of Rs.70 to 80 Lakhs due to heavy rains as the insured premises was flooded on 18.08.2019 with about two feet height water. Later, the Complainant submitted revised claims for Rs.2,13,77,725 for loss of stocks; Rs.9,24,807 towards loss to machinery; and Rs.5,15,350.00 towards building loss on 16.10.2019. On receipt of the claim, the Insurer appointed M/s. Protech Insurance Surveyors & Loss Assessors to do the spot and final survey. The Complainant supplied relevant Stock statements, Fixed Assets Schedule, Quotations, ITRs, Sales Tax Returns etc. as required by the Opposite Parties. The Surveyor assessed the gross loss as Rs.1,70,01,649.75 and net loss as Rs.98,60,376.95. However, the OP issued an acceptance letter for a lessor amount than earlier being only Rs.88,69,700/- vide consent letter dated 02.07.2020.

5.      The Ops declined to pay even the assessed/accepted amount on untenable grounds. Being aggrieved, the Complainant issued a legal notice dated 24.02.2021 claiming Rs.2,28,17,882 with interest and compensation for mental harassment. However, the OPs repudiated the claim vide letter dated 30.03.2021 citing non-submission of reply by the Complainant for its communication dated 11.02.2021. Being aggrieved, the Complainant filed the Complaint before the State Commission seeking the following:

(a) That the OPs be directed to pay the sum of Rs.2,28,17,882/- being the claimed loss amount or Rs.98,50,000/- the assessed/accepted claimable indemnification amount under the policies along with interest @ 18% per annum w.e.f. 18.08.2019 till payment.

(b) That the OPs be directed to pay Rs.15,00,000/- as compensation for the physical and mental harassment caused to the insured by deliberately not settling its claim as per the law of insurance and their own Insurance policy and delaying the claim inordinately and thus causing further business loss and loss of income.

(c) That the OPs be directed to pay a further sum of Rs.10,00,000/- as punitive damages for the unfair trade practice and UNFAIR CONTRACT adopted by them.

(d) That the Complaint be also allowed with further legal costs of Rs.1,10,000/-.

(e) Any other relief which this Court deems fit, may also be granted in favour of the complainant.”

6.      Vide the Impu