M. Shreesha ORDER
M. Shreesha, Member
1. Aggrieved by the order dated 16.04.2015 in CC No. 48 of 2006 passed by the State Consumer Disputes Redressal Commission, Tamil Nadu (for short the "State Commission"), New India Assurance Company Ltd. (for short "the Insurance Company") preferred the present First Appeal under Section 19 of the Consumer Protection Act, 1986 (for short "the Act"). By the impugned order, the State Commission has allowed the Complaint in part directing the Insurance Company to pay a sum of 54,46,940/- with interest @ 9% p.a. from 04.08.2006 till the date of payment together with compensation of 25,000/- and costs of 10,000/-.
2. The facts in brief are that the Complainant is an SSI Unit trading in edible oil and availed the financial assistance from the Second Opposite Party, hereinafter referred to as "the Bank" and insured for a period covering from 13.08.2005 to 12.08.2006. It is stated that the Complainant's Unit is equipped with two underground sump tanks, four rectangular tanks and two over-head tanks connected with necessary pipelines for the purpose of loading and unloading oils. It is also having packing machines and filtering machines along-with necessary electrical fittings, located in a plot area of approximately 10,000 sq. ft. protected on all sides with 8 ft. high compound wall, a main steel panelled gate and also a wicket gate. It is averred that the factory premises was well secured in all respects.
3. While so, there was heavy incessant rains on 26th and 27th October, 2005 due to which there was a flood and the rain water entered into the Complainant's factory premises eroding the soil in the underground sump and damaging the pipeline connected to the storage tank thereby damaging the entire stock of R.B.D. Pamolein Oil around 1,37,549 kgs worth 55,77,058/- and also packing materials worth 1,20,000/- which got washed away with the flood causing heavy losses. It was also pleaded that assets of unit worth about 1,50,000/- were also ruined thereby causing a total loss of 60,47,058/- due to inundation. The same was intimated to the Insurance Company on 28.10.2005 through phonogram, telephone and telegram and on 29.10.2005 and followed by a detailed Complaint in writing. A Police Complaint was lodged on 01.11.2005. The Surveyor inspected the unit on 29.10.2005 and vide letter dated 03.11.2005 called upon the Complainant to furnish the Claim Forum together with other documents as required by the officer of the Insurance Company with the request to settle the claim early. On 24.11.2005, the Unit was inspected by another officer by name Mr. R. Selvaraj and the Complainant once again submitted all the necessary documents i.e. lease agreement copy, EB card, sales tax registration certificates, stock register etc. On 29.12.2005 M/s. J.B. Boda Surveyors Pvt. Ltd., inspected the unit and submitted their Report on 30.12.2005 erroneously stating that the incident occurred on 26th and 27th December, 2005 whereas the actual incident occurred on 26th and 27th October, 2005. The documents required by the Surveyor were once again submitted on 05.01.2006 with the request to furnish the claim at the earliest. On 03.01.2006 nearly 70 days after the incident, the officers of the Insurance company collected samples of remnants at the bottom of the storage tank for testing. The Test Report alleged to have been obtained by the Insurance Company states that the analysis reveals that the sample collection was not meeting the required specifications. The Complainant averred that when the entire stock of the oil stored in the tank was washed out because of the floods ........