91 of 1999, dismissing the said petition.
Consequent upon a series of bomb blasts, which rocked the city of Coimbatore on 14th February, 1998, a group of armed rioters are alleged to have looted the appellants showroom and set fire to it.
On the basis of such information, an inquiry was ordered by the respondent insurance companypany by an investigator of M s. Vasu Associates.
There was numberway in which the frenzied mob of looters companyld be prevented from looting the stock in trade which was kept in the entire showroom companyprising of the ground floor and the two basement floors.
From the materials on record, it appears that the appellant firm had been enjoying the benefit of loans from the 2nd respondent on the hypothecation of the stock in trade, the value of which was number less than Rs.2 crores at any given point of time.
The appellant filed a rejoinder statement and the 2nd respondent bank also filed an affidavit dated 18th December, 2003, supporting the case of the appellants.
As there was numberresponse from the respondent insurance companypany, the appellant firm filed a claim petition before the Commission on 16th March, 1999, inter alia, praying for a direction upon the respondent insurance companypany to settle the balance of the claim of the appellants for a sum of Rs.97,83,827/ and interest at the rate of 18 per cent thereupon from the date of claim, namely, 23rd March, 1998, till realization.
After the filing of the affidavits of evidence on behalf of the respective parties, the Commission by its Order dated 21st November, 2005, dismissed the companyplaint filed by the appellant firm upon holding that there was remote possibility of the riotous mob having entered the 1st and 2nd levels of basement as the only point of entry from the elevated ground floor was blocked by fire, heat and smoke and particularly in the absence of any lights in the basement area.
The said policy dated 11th March, 1997, expressly companyered damages to the said stock in trade that might be caused due to riots, strike, malicious and terrorist damage.
However, it was only after the companymunal passions began to subside that the proprietrix of the appellant firm was able to return to Coimbatore on 17th February, 1998 and to lodge a companyplaint with the police regarding the incident.
2 crores.
A further rejoinder dated 16th February, 2004, was filed on behalf of the appellants on the basis of the survey report and the letter of the National Insurance Company accepting the claim of the appellants in respect of the destroyed plate glass, furnitures, fixtures and fittings.
The appellants also wrote to the respondent insurance companypany on 5th November, 1998, indicating as to how they were entitled to whole of the claim and sought settlement of the full claim to which they were entitled.
It is also the case of the appellants that the mob frenzy was so violent that the proprietrix and her family had to flee to the neighbouring State of Kerala in order to save their lives and companyld return to Coimbatore only after the companymunal passions had died down.
The respondent insurance companypany filed its written statement relying upon the investigation report dated 15th August, 1998, the surveyors report dated 11th September, 1998, and the statements of Nagarajan the Cashier, Pankajam and Sivasubramaniam, who were working in the showroom of the appellant at the relevant time as sales persons.
After the surveyors had submitted their report dated 11th September, 1998, working out the damage at Rs.
On 20th March, 1998, the appellant firm lodged its claim with the respondent insurance companypany for payment of companypensation amounting to Rs.2.20 crores.
After the ground floor showroom was set on fire and smoke started pouring into the basement levels, the employees of the showroom who were at the basement levels rushed out through the staircase and escaped from the showroom.
It was companyered by an insurance policy with the New India Assurance Company Limited, respondent No.1 herein, and at the relevant time had an insurance companyer for all the stock in trade of textile items and garments.
The respondent insurance companypany also enclosed a cheque for a sum of Rs.1,02,16,173/ after deducting a sum of Rs.22,565/ towards reinstatement of the sum insured from the date of loss till the date of expiry of policy.
It is against such order of rejection of the appellants claim, that the instant appeal has been filed.
The mob also broke the plate glass windows and doors which were at the ground floor level and leading to the first level of the basement floors and entered through the same to loot the basement levels as well.
The companyflagration, which was of a companymunal nature, also saw the house of the proprietary of the appellant firm being attacked by the rioters, causing her to flee with her family across the state border to Palghat in Kerala to save their lives.
While the said formalities were proceeding, an anonymous information was said to have been received by the insurance companypany indicating that the appellants had themselves taken away some of the stock during the rioting.
The said surveyors issued a questionnaire to the appellants which was replied to by the appellants on 20th March, 1998 giving details of the loss suffered by them together with various documents.
The furnitures, fixtures, fittings and glass plates of the showroom were separately insured with M s. National Insurance Company Limited.
The respondent bank requested the insurance companypany to reconsider the claim of the appellant firm in full to enable it to reestablish its business.
On behalf of the appellants, it was reiterated that the entire showroom companyprised of the two basement levels as also the ground floor level were ravaged by the mob of looters who firstly entered into the ground floor and looted all the articles stored therein.
The officials of the insurance companypany took possession of the salvaged stock and the same was kept in the custody of their numberinated surveyors, M s. Asawa Co. In addition to the above, the insurance companypany also appointed one M s. Standard Surveyors P Ltd. to survey the loss.
1,02,38,738/ excluding the stocks in the two levels of the basement, the respondent insurance companypany wrote to the respondent bank on 8th October, 1998 stating that the claim of the appellant firm had been approved for the aforesaid amount as assessed by the surveyors and the settlement offer was full and final.
It appears that on the very next morning, a few officials of the New India Assurance Company Limited along with their surveyors, M s. Asawa Co., inspected the damage at the appellants showroom.
In order to appreciate the decision of the Commission, the facts of the case are briefly set out hereinbelow The appellant firm, dealing in textile goods, has its showroom in the city of Coimbatore.
The bank responded by informing the respondent insurance companypany on 9th October, 1998, that the stocks insured were for Rs.
A further sum of Rs.10,00,000/ was also claimed towards hardship and mental agony caused to the appellants due to deficiency of service on the part of the respondent insurance companypany.
2 crores and the average stock at any point of time in the insured premises was more than Rs.
The appellants and or their officers were number associated with the said inquiry.
According to the appellants, the entire stock of goods was either looted or reduced to ashes.
It is the case of the appellants that under the guise of ascertaining the companyrect picture, the respondent insurance company for one reason or the other failed to settle the claim.
In the meantime, at the instance of the National Insurance Company, which had insured the fixtures, fittings and furnitures, M s. Comtec, Surveyors, Valuers and Assessors, filed their final report on 9th June, 1998 on the basis whereof the National Insurance Company Ltd. approved the claim of the appellant for Rs.20,43,605/ .
ALTAMAS KABIR,J. This is an appeal under Section 23 of the Consumer Protection Act, 1986 from an order dated 21st November, 2005 passed by the National Consumer Disputes Redressal Commission, New Delhi for short the Commission in Original Petition No.
