The National Commission numbered that respondent No.
112119000249 Rs.40 194/94 Stock of Wheat, Wheat Lakh Products and Packing material and Goods of like nature of Krishna Flour Oil Mills 2.
Ltd. Company for short is a companypany registered under the Companies Act, 1956 as applicable to the State of Jammu Kashmir.
Grindlays Bank has number challenged the order passed by the National Commission.
The order passed by the National Commission, therefore, deserves interference by allowing the appeals of the Insurance Company.
25,58,798 00 Thus, according to the companyplainants, total loss in respect of raw materials and allied perils was to the extent of Rs.
With regard to the raw material, it was companyered by policy No.1131190000312 and the companyerage was for Rs.
In the appeals, it was companytended by the Insurance Company that the National Commission was in error in granting relief in favour of the companyplainants.
The claim put forward by the companyplainants was for Rs.37,78,618/ .
It believed the case of the companyplainants that there was terrorist attack on both the units on November 12, 1991 and the militants set on fire the units.
05,40,079 00 Interest 18 Rs.
1131190000249.
The figure was companymunicated by the Insurance Company to the companyplainants.
The prayer was also made to pay appropriate amount towards harassment caused to the companyplainants.
The National Commission companysidered the relevant documentary and oral evidence and observed that the risk was companyered by the terms and companyditions of the insurance policy.
It was stated that there was watch and ward staff as also some other personnel who looked after the premises and stocks and raw materials lying in the units.
forty lakhs and premium of Rs.5,814/ was paid.
194, 209 and 210 of 1994.
The final survey report at the instance of the Insurance Company recommended to settle the claim of the companyplainants at Rs.5,18,619/ .
It further recorded a finding that there was numberevidence whatsoever to companyclude that there was pilferage either by the intruders or by the staff members of any of the units.
113119000312 Rs.25 210/94 Stocks of Raw Material Lakh like Flour, Maida, Ghee, chemicals etc.
in godowns belonging to Krishna Food Baking Industries 3.
08,66,471 00 TOTAL Rs.
The prayer made in the companyplaints and the demand in respect of policies and sums may be summarized thus S No.
Moreover, though there was destruction of raw material due to fire in the units, since the raw materials were unfit for human companysumption, the companyplainants claim was number well founded.
The policy was for an amount of Rs.
The Company was dealing in manufacturing bread, biscuits, cakes and other bakery items.
The Insurance Company was directed to make payment of Rs.31,373/ towards damage to building with interest at the rate of 12 per cent and the companyplaints were accordingly disposed of.
It is the case of the companyplainants that during the period of disturbances caused by militancy in early nineties of the last century, Mr. Praneet Sawhney, only son of Rajendra Kumar Sawhney was shot dead by the terrorists on March 27, 1990 in his office.
Canara Bank, however, has filed two appeals by obtaining special leave from this Court against orders passed in Original Petition Nos.
The amount which was offered by the Insurance Company was adequate and sufficient.
With regard to raw materials and stocks, the amount was substantially curtailed by the Insurance Company inter alia on the grounds that the stocks were perishable in nature and had become unfit for human companysumption and the same had been badly affected by bacterial growth.
113119000313 Rs.53 209/94 Plant Machinery Lakhs installed in Krishna Food Baking Industries.
Upon the query by the companyplainants, however, the Insurance Company, instead of giving response to the query, repudiated the claim vide letter dated April 19, 1995 on the ground that there was pilferage and hence, the Insurance Company was number liable.
2 Grindlays Bank supported the case of the companyplainants and prayed that the amount claimed by the companyplainants be given to them as the companyplainants executed mortgage documents in the favour of the Bank.
53,00,000 The Insurance companypany, on the other hand, stated that the companyplainants were entitled only to Rs.31,373/ and numberhing more.
The Insurance Company also examined Mr. V.K. Malik and Mr. M.R. Grover.
It was also stated in the companyplaints that the companyplainants were able to transfer records from Srinagar to Delhi.
Being aggrieved by the order passed by the National Commission, three appeals have been filed by the companyplainants.
Rs.450/bag 21,04,200 Krishna 271 Bags 80 Kg.
It was, therefore, held that the companyplainants were number entitled to the claim.
Immediately thereafter, operations of both the units were suspended and the companyplainants had to migrate to Delhi.
The surveyors, in their report, narrated the facts and circumstances of the case and left the amount of valuation of raw materials to the opposite party.
Similarly, raw materials and stocks had become unfit for human companysumption and the companyplainants were number entitled to the amount claimed by the companyplainants from the Insurance Company.
The amount on account of poor quality of goods and materials had been rightly deducted.
Both the units were located in Nawab Bazar, Srinagar, in the State of Jammu Kashmir.
On the said claim, the Insurance Company appointed three investigators, i.e. Mr. Hamdani, Andrasabi and Adarsh Associates.
Rs.400/bag 1,08,400 Bhog Atta Super 5952 Bags 10 Kg Rs.55/bag 3,27,360 Fine Atta Bran 2090 Bag 10 Kg Rs.100/bag 2,09,000 Bardana Total value as per 1,74,267 Packing Books Material Total 37,78,619 The National Commission held that surveyors of the companyplainants had prepared a report and submitted to the Insurance Company, but the claim was repudiated on the ground that there were numberstock worth its while as there was pilferage since the units remained closed for about twenty months.
Accordingly, it held that the companyplainants were entitled to the said amount.
The National Commission companysidered the evidence of Mr. Ghulam Rasool Wani, the only witness examined on behalf of the companyplainants who was an illiterate staff member.
Wheat 2138.48 Qtls.
Premium of Rs.4,821/ was paid and the policy was subsisting.
25,58,798/ .
25 lakhs.
On behalf of the Insurance Company, two surveyors, Mr. Andrasabi and Mr. A.K. Gupta were examined.
28,00,000 Manufacture of Biscuits, Bread etc.
209 of 1994 and 210 of 1994.
8,55,392 Maida 4676 Bags 90 Kg.
According to the companyplainants, the stocks which were lying in the units were as under Commodity Quantity Rate Amount Rs.
It was also companytended by the Insurance Company that the stock was number fit for human companysumption.
In a subsequent report, however, they gave a figure of Rs.4,33,122/ for settlement of the claim and asked the companyplainants whether they were ready to accept the amount.
It, however, held that stocks were worthless, and as such, the companyplainants were number entitled to the amount claimed.
It also held that the units companyld number work in view of militancy in the area and the units were required to be closed down.
The break up given for such claim was as under Raw Materials Rs.
The companyplainants were number entitled to any relief since in absence of the Managing Director and other responsible persons, there was pilferage by intruders and staff members themselves for which the Insurance Company cannot be held liable number it can be directed to make payment.
Rs.400/Qtl.
11,52,248 00 Packing Materials Rs.
According to the National Commission, an amount of Rs.5,18,619/ as recommended by the surveyors of the Insurance Company was a reasonable figure and ought to have been accepted by the Insurance Company.
Two appeals are filed by the Insurance Company.
194 of 1994 and companypanion matters.
Both were sister companycerns.
K. THAKKER, J. All these appeals have been filed against a companymon judgment and order dated June 01, 2001 passed by the National Consumer Disputes Redressal Commission National Commission for short in Original Petition No.
