B.C. Gupta ORDER
V.K. Jain, J. (Presiding Member)
1. The complainant company obtained a standard Fire and Special Perils plus Earthquake Policy from the opposite party to the extent of Rs. 7,00,00,000.00 (Rupees seven crores) in respect of stock of grey and finished fabrics, suitings & shirtings, threads, yarns, stock in process and/or colour and chemical, coal and wood, fuel and gas, diesel and petrol, spares and stores, inventories and motors, packing material and polythenes, electric equipment and wiring and office equipment, computer and accessories and lab equipment etc. A fire broke out in the finished goods godown of the complainant at about 05:15 am on 15.03.2008. On intimation being given to the insurance company, one Mr. G.P. Singh was appointed as the preliminary surveyor, followed by appointment of M/s. Associated Surveyors and Consultants as the final surveyor. Though the complainant lodged a claim of Rs. 6,16,90,843.02, the insurance company paid only an amount of Rs. 3,59,20,590/- after obtaining a discharge voucher whereby the complainant company accepted the aforesaid amount in full and final discharge of its claim. The complainant also gave an undertaking to the insurance company accepting the report of the final surveyor and undertaking not to raise any dispute in future, as far as the quantum of the claim was concerned. Before submission of the aforesaid undertaking and payments, pursuant thereto, the insurance company had written a letter dated 11.09.2009 to the complainant intimating it that the competent authority had approved 'on account' payment of Rs. 2.00 crores, subject to its giving an undertaking that it will not take any legal recourse after accepting the said payment, will accept final surveyor's report in toto and not raise any dispute in future as far as the quantum of the claim was concerned. Vide its letter dated 18.09.2009, the complainant objected to the insurance company requiring the furnishing of undertaking in terms of letter dated 11.09.2009 and stated that submission of such a consent letter would be unjustified. The insurance company was requested to pay the entire claim amount immediately. The complainant however, submitted the undertaking desired by the insurance company on 14.10.2009 and the said undertaking was stated to be without any force or coercion. After releasing part payment of Rs. 2.00 crores on 23.10.2009 (Rs. 1,99,99,999/-), the insurance company released the balance payment of Rs. 1,59,19,073/-, less Rs. 1,518/- to the complainant on 17.03.2010.
2. Since the complainant is not satisfied with the payment made to it by the insurance company, the company is before this Commission, seeking payment of the balance amount of Rs. 2,57,70,253/-, along with interest till filing of the complaint quantified at Rs. 2,60,92,000/-, compensation quantified at Rs. 2,70,00,000/- and cost of litigation quantified at Rs. 5,00,000/-, thereby making a total claim of Rs. 7,93,62,263/-.
3. The complaint has been resisted by the insurance company which has taken a preliminary objection that having settled the claim at Rs. 3,59,20,590/- in accordance with the assessment made by the surveyor in full and final satisfaction and unconditional discharge of its claim, the complainant is precluded from demanding any further amount from the insurance company. On merits, the insurance company has sought to justify the assessment made by the final surveyor and the payment made to the complainant.
4. The principal claim made in the complainant can be divided into the following four heads:-
(a) Payment in respect of the fabric of Suntana Textile Mills Pvt. Ltd. (Rs. 39,82,021/-)
(b) Salvage value of Rs. 5,05,236.12 deducted by the surveyor
(c) Difference as regards quantity of the undamaged stock (value of the differential stock being Rs. 71,62,807.70)
(d) Deduction of Rs. 1,41,20,188.58 on account of the alleged underinsurance.
Fabric of Suntana Textile Mills Pvt. Ltd.
5. The case of the complainant, which used to process the fabric belonging to other persons is that 91730.49 mtr. Fabric, belonging to Suntana Textile Mills Pvt. Ltd. ........