Order dictated by:

Sh.Anoop Sharma, Presiding Member

1.       The complainant  has brought the instant complaint under section 12 & 13 of the Consumer Protection Act, 1986 on the allegations that the complainant is a registered Cooperative Society under the provisions of The Punjab Cooperative Societies Act, 1961. The Managing Committee of the Society had authorized Harpal Singh Salesman of the Society vide resolution dated 22.7.2016 to file and pursue the present complaint and the present complaint is being filed by duly authorized and competent person. The complainant society is providing fertilizer, insecticides, pesticides, essential  commodities to its members in control/ subsidized rates as per policies of the government. The Society was not having its own building and godown at village: Makowal to run its office and godown, as such the society had taken on rent a building at Village: Sudhar from the Sudhar Cooperative Agricultural Service Society on 21.3.2005 at the monthly rent of Rs.50/- in which the office of society is functioning  and godown is being used to store fertilizer, insecticides, pesticides, ghee, oil and other essential commodities etc. The rent of godown was increased to Rs.1000/- by the Society vide resolution dated 10.9.2013 w.e.f. 1.9.2013. The society had  insured the godown situated at Village: Sudhar from Opposite Party w.e.f. 1.4.2015 to 31.3.2016 for Rs.6 lacs and had paid premium of Rs.2540/- to the Opposite Party. The concerned  officials of the Opposite Party had visited the office and godown of the society at village: Sudhar and after satisfying that the fertilizer and other goods are stored in the godown by the society and finding it fit for insurance, the Opposite Party had affected insurance and issued cover note on 11.4.2015. The officials of the society had locked the office and godown of the society on 22.1.2016. the office was closed for Saturday and Sunday on 23.1.2016 and 24.1.2016. When the Secretary Jaswant Singh and Salesman Harpal Singh came to office on 25.1.2016 at about 9 AM, they found that some unidentified persons after breaking the lock and shutter of godown, had stolen fertilizer, Ghee, Refined Oil etc. from the godown. Jaswant Singh Secretary had immediately gave intimation to the Police Station Ramdas and an FIR No.0009/2016 dated 25.1.2016 was registered under section 457/380 IPC by the police. After stock verification of the stocks in the godown, it was found that the fertilizer NPK 238 bags, DAP 26 bags, Ghee 28 Tin, Oil 30 Tin, Refined Oil 41 Tin had been stolen from the godown valuing Rs.4,20,227/- and the list of the missing goods was duly supplied to the SHO Police Station Ramdass. The entry of the missing stocks had been duly entered in the stock register of the society. The society had intimated  the Opposite Party about the theft in the godown and lodged the insurance claim enclosing all the requisite documents for settlement of claim for the loss of Rs.4,20,227/-. The Opposite Party had deputed Sh.Rajiv Arora Surveyor and gave its report in favour of the society. However, the Opposite Party vide their letter dated 4.4.2016 had declared the claim of society as ‘No Claim’ for the reasons that  “the claim was  reported for loss of stocks at Sudhar due to theft. We find the policy covered location is VPO Makowal, Tehsil: Ajnala, District Amritsar, however, loss occurred at village; Sudhar, Tehsil: Ajnala, District Amritsar, therefore the loss location is not covered under issued policy.”  The complainant society was shocked to find that their genuine claim was declared as ‘No Claim’ hence the Managing Committee passed a resolution on 17.6.2016 and resolved that the Society  is running  its godown at village Sudhar since 21.3.2015 and the insurance of the godown at Sudhar was done by the Opposite Party. Hence the rejection of claim of the society vide letter dated 4.4.2016 is wrong, illegal, unlawful and without any justification as the Opposite Party had insured the godown of complainant situated at Sudhar, because there is no godown and office of society at village: Makowal and the society is running  its godown since 2005 on rented accommodation belonging to Sudhar Cooperative Agricultural Service Society. Vide instant complaint, the complainant has sought the following reliefs.

a)       Opposite Party may kindly be ordered to pay the insurance claim of society amounting to Rs.4,20,277/- alongwith interest @ 12% per annum w.e.f. 21.1.2016 till its realization. Opposite Party may kindly be ordered to pay compensation of Rs.20,000/- for the inconvenience, harassment and financial loss suffered by the complainant at the hands of the Opposite Party alongwith a sum of Rs.15,000/- as litigation expenses, in the interest of justice, equity and fairplay.  

Hence, this complaint.

2.       Upon notice, Opposite Party  appeared and contested the complaint by filing  written statement taking preliminary objections therein inter alia that the complaint is not maintainable. There is no deficiency in service or negligence or unfair trade practice on the part of Opposite Party.  Infact, the insurance as per the information given by the complainant was done of the stock situated at village and PO Makhowal, Tehsil: Ajnala, District Amritsar and the loss has been reportedly  of the stock at village: Sudhar due to alleged theft. Since there was no insurance policy which cover the said location, so the claim was rightly repudiated to the complainant.  The complainant is a Cooperative Society and the Cooperative Society at the time of getting the requisite documents and insurance from Opposite Party had intimated regarding the insurance of the stocks situated at village: Makhowal. Therefore, the Opposite Party after receiving the intimation immediately appointed the surveyor for loss and assessor and he intimated to the insurance company that as per the policy the stocks were not lying at village: Makhowal, so accordingly the claim of the complainant was repudiated on this ground and was rightly intimated to the complainant vide repudiation letter dated 4.4.2016 after examining the entire facts and circumstances of the case. On merits, the Opposite Party almost took up the same and similar pleas as taken up by them in the preliminary objections.      Remaining facts mentioned in the complaint are also denied and a prayer for dismissal of the complaint with cost was made.

3.       In his bid  to prove the case, complainant Harpal Singh tendered into evidence  affidavit Ex.CW1/A in support of the allegations made in the complaint and also produced copies of documents Ex.C1  to Ex.C11  and closed his evidence.

4.       On the other hand, to rebut the evidence of the complainant, the Opposite Party tendered into evidence the affidavit of Sh.Sanket Gupta, Vice President Ex.OPW1/A alongwith copies of documents Ex. OP1 to Ex.OP38  and closed the evidence on behalf of the Opposite Party.

5.       We have heard the ld.counsel for the parties and have carefully gone through the evidence on record.

6.       Complainant Harpal Singh has submitted his affidavit Ex.CW1/A in which he has reiterated the facts as detailed in the complaint and contended that the complainant is a registered Cooperative Society under the provisions of The Punjab Cooperative Societies Act, 1961. The Managing Committee of the Society had authorized Harpal Singh Salesman of the Society vide resolution dated 22.7.2016 to file and pursue the present complaint and the present complaint is being filed by duly authorized and competent person. The complainant society is providing fertilizer, insecticides, pesticides, essential  commodities to its members in control/ subsidized rates as per policies of the government. The Society was not having its own building and godown at village: Makowal to run its office and godown, as such the society had taken on rent a building at Village: Sudhar from the Sudhar Cooperative Agricultural Service Society on 21.3.2005 at the monthly rent of Rs.50/- in which the office of society is functioning  and godown is being used to store fertilizer, insecticides, pesticides, ghee, oil and other essential commodities etc. The rent of godown was increased to Rs.1000/- by the Society vide resolution dated 10.9.2013 w.e.f. 1.9.2013. The society had  insured the godown situated at Village: Sudhar from Opposite Party w.e.f. 1.4.2015 to 31.3.2016 for Rs.6 lacs and had paid premium of Rs.2540/- to the Opposite Party. The concerned  officials of the Opposite Party had visited the office and godown of the society at village: Sudhar and after satisfying that the fertilizer and other goods are stored in the godown by the society and finding it fit for insurance, the Opposite Party had affected insurance and issued cover note on 11.4.2015. The officials of the society had locked the office and godown of the society on 22.1.2016. the office was closed for Saturday and Sunday on 23.1.2016 and 24.1.2016. When the Secretary Jaswant Singh and Salesman Harpal Singh came to office on 25.1.2016 at about 9 AM, they found that some unidentified persons after breaking the lock and shutter of godown, had stolen fertilizer, Ghee, Refined Oil etc. from the godown. Jaswant Singh Secretary had immediately gave intimation to the Police Station Ramdas and an FIR No.0009/2016 dated 25.1.2016 was registered under section 457/380 IPC by the police. After stock verification of the stocks in the godown, it was found that the fertilizer NPK 238 bags, DAP 26 bags, Ghee 28 Tin, Oil 30 Tin, Refined Oil 41 Tin had been stolen from the godown valuing Rs.4,20,227/- and the list of the missing goods was duly supplied to the SHO Police Station Ramdass. The entry of the missing stocks had been duly entered in the stock register of the society. The society had intimated  the Opposite Party about the theft in the godown and lodged the insurance claim enclosing all the requisite documents for settlement of claim for the loss of Rs.4,20,227/-. The Opposite Party had deputed Sh.Rajiv Arora Surveyor and gave its report in favour of the society. However, the Opposite Party vide their letter dated 4.4.2016 had declared the claim of society as ‘No Claim’ for the reasons that  “the claim was  reported for loss of stocks at Sudhar due to theft. We find the policy covered location is VPO Makowal, Tehsil: Ajnala, District Amritsar, however, loss occurred at village; Sudhar, Tehsil: Ajnala, District Amritsar, therefore the loss location is not covered under issued policy.”  The complainant society was shocked to find that their genuine claim was declared as ‘No Claim’ hence the Managing Committee passed a resolution on 17.6.2016 and resolved that the Society  is running  its godown at village Sudhar since 21.3.2015 and the insurance of the godown at Sudhar was done by the Opposite Party. Hence the rejection of claim of the society vide letter dated 4.4.2016 is wrong, illegal, unlawful and without any justification as the Opposite Party had insured the godown of complainant situated at Sudhar, because there is no godown and office of society at village: Makowal and the society is running  its godown since 2005 on rented accommodation belonging to Sudhar Cooperative Agricultural Service Society and hence, there is deficiency in service on the part of the Opposite Party.

8.       On the other hand, ld.counsel for the Opposite Party has repelled the aforesaid contention of the ld.counsel for the complainant on the ground that  there is no deficiency in service or negligence or unfair trade practice on the part of Opposite Party.  Infact, the insurance as per the information given by the complainant was done of the stock situated at village and PO Makhowal, Tehsil: Ajnala, District Amritsar and the loss has been reportedly  of the stock at village: Sudhar due to alleged theft. Since there was no insurance policy which cover the said location, so the claim was rightly repudiated to the complainant.  The complainant is a Cooperative Society and the Cooperative Society at the time of getting the requisite documents and insurance from Opposite Party had intimated regarding the insurance of the stocks situated at village: Makhowal. Therefore, the Opposite Party after receiving the intimation immediately appointed the surveyor for loss and assessor and he intimated to the insurance company that as per the policy the stocks were not lying at village: Makhowal, so accordingly the claim of the complainant was repudiated on this ground and was rightly intimated to the complainant vide repudiation letter dated 4.4.2016 after examining the entire facts and circumstances of the case. Perusal of the cover note Ex.C2 shows that there is no mention that the complainant has got insured the premises of their godown situated at Sudhar and hence the complainant has vehemently failed to establish that the complainant has got the premises insured from the Opposite Party in which the stock lying was allegedly stolen. The Opposite Party had deputed Sh.Rajiv Arora Surveyor and gave its report in favour of the society and on the basis of the report of the surveyor, the Opposite Party vide their letter dated 4.4.2016 had declared the claim of society as ‘No Claim’ for the reasons that  “the claim was  reported for loss of stocks at Sudhar due to theft. We find the policy covered location is VPO Makowal, Tehsil: Ajnala, District Amritsar, however, loss occurred at village; Sudhar, Tehsil: Ajnala, District Amritsar, therefore the loss location is not covered under issued policy.”  Moreover, Sudhar Cooperative Agricultural Service Society  has different identity and have no concern the  present complainant society with regard to its insurance with the Opposite Party.  Hon’ble Supreme Court of India in case Sri Venkateshwar Syndicate Vs. Oriental Insurance Company Limited, II(2010) CPJ 1 (SC) has held that the report of the surveyor is to be given due importance and weighage and it can not be brushed aside without valid reasons.   

9.       Keeping in view the aforesaid facts and circumstances of the case, we find no deficiency in service on the part of the Opposite Party and hence the instant complaint stands dismissed. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room. Case could not be disposed of within the stipulated period due to heavy pendency of the cases in this Forum.

Announced in Open Forum