O R D E R
Per Sri A. Hazarath Rao, President:-
The complainant filed this complaint u/s 12 of the Consumer Protection Act seeking Rs.2,46,000/- being the value of burnt chillis; Rs.1,07,010/- being the interest; Rs.1,00,000/- towards mental agony and Rs.10,000/- towards costs.
2. In short the averments of the complaint are hereunder:
The complainant firm is doing commission business in chillies at AMC, Guntur. The complainant firm took Standard Fire and Special Perils Insurance Policy from the 1st opposite party on 29-03-08 for Rs.3,69,700/- vide policy No.620901/11/07/011/00000756. The policy was valid upto the midnight of 28-03-09. On 03-05-08 during the early hours a major fire accident took place in the AMC Yard, Guntur and in the said accident 2,51,746 bags were gutted to fire causing loss to the farmers who brought the chillis to the market yard besides to owners of the shops. The Government on 21-05-08 issued the GO.Rt.No.609 (Agricultural and co-operative Department) fixing the rate at Rs.1200/- per bag of 40 kgs and Rs.3,000/- per quintal without differentiating red and white chillies. The complainant on 25-08-08 submitted claim forms to the 1st opposite party and stock statement on 28-01-09. The opposite parties were postponing of settlement of claim for the reasons best known to them inspite of many requests. The complainant having vexed with the attitude of the opposite parties got issued notice to the opposite parties on 30-09-11. Both the opposite parties neither gave reply nor settled the claim though received notice. The complaint therefore be allowed.
3. The 2nd opposite party filed memo adopting the version of the 1st opposite party and their contention in nutshell is hereunder:
The complainant took the Standard Fire and Special Perils Policy bearing No.620901/11/07/011/00000756 for its building and stock worth of Rs.1,23,700/- and Rs.2,46,000/- respectively. The policy was valid from 29-03-08 to 28-03-09. The complaint is not maintainable for not adding the concerned farmers. A fire accident occurred on the night of 03-05-08 in Agricultural Market Committee, Guntur and several commission agents made the claims for the structure and stock. None of the commission agents submitted relevant documents for settlement of claims. After considering various factors and views exchanged by the insurance companies and commission agents the District Collector on 22-09-09 required the claimants to submit documents mentioned therein for settlement of claim. The above referred documents are necessary for settlement of claims. The opposite parties appointed Sri CH. Veera Babu, Chartered accountant/insurance surveyor to assess the loss allegedly caused and he submitted his report on 22-01-10. The said surveyor assessed the net loss to the building at Rs.50,000/- and paid Rs.49,787/- to the complainant through the cheque bearing No.22230 dated 23-03-10. The complainant submitted the letter of Agricultural Market Committee dated 28-01-09 stating that the chillies worth of Rs.2,46,000/- belonging to the complainant were gutted in fire. The Agricultural Market Committee issued the said letter on the information given by the complainant and not as per their record. The Agricultural Market Committee was unable to mention the number of bags that were available in the shed of the complainant at the time of fire accident. The insured did not produce any evidence for receipt of the stocks on the above dates. The opposite parties asked the complainant in its letter dated 21-12-09:
a) Profit & Loss account, Balance sheet, computation of total income and copy of acknowledgement of the return of income filed with Income Tax Department for the financial year 2007-08.
b) Copy of the AMC assessment order for the financial year 2007-08.
c) Stock register for the financial year 2007-08.
d) Details of transaction carried on after accident on 03-05-08 during financial year 2008-09 and evidence for the same i.e., stock register, amanath patties, producer takpatties and commission agent takpatties (sales invoices).
As the complainant did not produce the above documents the opposite parties closed the claim for stocks as no claim. As per the stock register submitted by the complainant the stock was 148.37 (bag of 40 kgs) and its value came to Rs.1,78,044/- @Rs.1200/- per bag of 40 kgs. On account of the attitude of the complainant in not submitting the required documents the opposite parties treated the claim of the complainant as closed. The opposite parties did not commit any deficiency of service. The complaint therefore be dismissed.
4. Exs.A-1 to A-8 and Exs.B-1 to B-8 on behalf of the complainant and opposite parties were marked respectively.
5. Now the points that arose for consideration are:
1. Whether the complaint is maintainable for not impleading the farmers to whom the stock belonged to?
2. Whether the opposite parties committed deficiency of service and if so by whom?
3. Whether the complainants are entitled to compensation?
4. To what relief?
6. Admitted facts in this case are these:
1. The complainant insured the building for Rs.1,23,700/-and the stocks for Rs.2,46,000/- totaling to Rs.3,69,700/- (Ex.A-1).
2. The policy was valid from 29-03-08 to the midnight of 28-03-09 as mentioned in Ex.A-1.
3. The complainant owned plot No.3 in AMC, Guntur.
4. The complainant‘s license is valid from 01-04-08 to
31-03-13 (Ex.A-2).
5. The complainant submitted claim form along with copy of stock register (Ex.A-4 =B-4).
7. POINT No.1:- The complainant is the insured under Ex.A-1 policy. Complainant being the insured the complaint is maintainable even in the absence of farmers. The said contention of the opposite parties is devoid of merit. Hence we answer this point against the opposite parties.
8. Point No.2:- The complainant claimed Rs.2,46,000/- towards loss of chilli stock in AMC, Guntur on 03-05-08 due to fire accident. Ex.B-1 is copy of minutes of the Joint Review meeting convened by the District Collector and Magistrate, Guntur with insurance authorities and commission agents, Chairman, AMC, Guntur and Marketing officials held on 22-09-09 in Collectorate.
9. The relevant portion in Ex.B-1 is extracted below for better appreciation:
“After considering the various factors and views exchanged by the Insurance Companies and Commission Agents the District Collector instructed the commission agents to submit following documents to the Insurance authorities for settlement of claims for which the insurance authorities are also agreed for the proposal.
LIST OF DOCUMENTS TO BE SUBMITTED BY THE COMMISSION AGENTS
1. Policy copy/copies
2. Claim form duly completed
3. Copy of partnership deed in case of partnership
4. Copies of VAT & CST Registration Certificates if any
5. Yard license copy pertaining to your plot (Form-8), and certificate issued by AMC regarding damage to your shed.
6. Estimation for the re-construction of burnt shed along with plan.
7. Your stock statement showing the arrivals and dispatches of chillies stocks pertaining to various farmers from 23-04-08 to
03-05-08 or copy of stock register for the above period.
8. Copy of Tak Patties/sales invoices for the above period.
The District Collector instructed the Commission Agents to submit affidavit regarding stocks lost in the fire accident at the shop farmers wise and also declaration stating that the claims proceeds have to paid to the farmers concerned who have lost their stocks at the time of accident. The payments to the effected farmers by the commission agents after the settlement of claims will be closely monitored by the District administration. The Agrl. Market Committee authorities have to certify the stock of mirchi bags burnt at Commission agents shop and the Engineering Department of Agrl. Market Committee had to issue value certificate and lan regarding reconstructed burnt shed.
The District Collector fixed the time bound for settlement of insurance claims and for submission of relevant documents by the Commission agents as stated below:
i. The commission agents should submit relevant documents in 8(eight) points as mentioned above by the Collectorate on or before 29-09-09 and the Joint Collector/DRO will scrutinize the documents and transmit them to the Insurance Company concerned.
ii. The insurance claims shall process & settle the claims at least 75% of Commission agents by the 20-10-09 and complete the entire settlement of claims by the end of 30-10-2009.
The District Collector further warned that if the settlement of claims are not finalized by the Insurance Companies even though the required information submitted by the Commission Agents within the stipulated period the District Administration will not hesitate to approach Hon’ble High Court and Judicial authorities like Lok Adalat in the interest of the effected farmers of Mirchi. The District Collector instructed Chairman Agrl. Market Committee, Guntur for the closely monitor the entire process”.
10. Ex.B-1 though not having force of authority the claimants have to submit the documents mentioned in Ex.B-1. The complainant in its affidavit and complaint mentioned that it submitted stock particulars along with the letter to the 1st opposite party on 28-01-09 i.e., much earlier to Ex.B-1. It is not the case of the complainant that it furnished particulars to the 1st opposite party as mentioned in Ex.B-1.
11. Let the Forum consider the documents submitted by the complainant before this Forum in support of its contention regarding stock. Ex.A-4 (=B-4) revealed the stock as 148.37. It does not disclose whether 148 represented bags or quintals. The complainant in his affidavit and mentioned the total loss of bags that involved in fire accident was 2,51,746 bags. Considering the same, we infer the same as 148 bags and 37 kgs. The complainant also relied on Ex.A-5 letter issued by the Secretary, AMC, Guntur. Relevant portion in Ex.A-5 is extracted below for better appreciation:
“In this connection, I am to inform you that the extent of sum insured by M/s Guruswamy and company, Guntur for Rs.2,46,000/- worth of chilies is in the total bags gutted in the fire accident i.e., 2,51,746”.
12. Number of bags belonging to the complainant gutted to fire did not find place in Ex.A-5. The amount mentioned in Ex.A-5 represented the sum assured towards stock as mentioned in Ex.A-1 policy. The burden is on the complainant to prove the number of bags involved in the fire accident. Ex.A-4(=B-4) is a self serving document as rightly contended by the opposite parties. The stock mentioned in Ex.A-4 belonged to one Bandlamudi Sambasiva Rao R/o Mandepudi and Kanugula Koti Swamy R/o Appapuram. The complainant did not file the affidavits of those persons or takpatties/sales invoice in support of its claim for the reasons best known to it.
13. Ex.A-4(=Ex.B-4) revealed that 148 bags and 37 kgs were involved in fire accident as already observed. But the complainant claimed for 185 bags. Thus there was material discrepancy regarding the stock. Under those circumstances, burden is on the complainant to clarify it. No such attempt was made by the complainant either in his affidavit or in the complaint. In the absence of takpatties/sales invoice the repudiation of claim by the opposite parties in our considered opinion is just and reasonable. We therefore answer this point in favour of the opposite parties.
14. POINT No.3:- In view of above finding, the complainant is not entitled to any compensation much less the amount claimed. We therefore answer this point also in favour of the opposite parties.
15. POINT No.4:- In view of above findings, in the result the complaint is dismissed without costs.
Typed to my dictation by Junior Steno, corrected by me and pronounced in the open Forum dated this the 6th day of July, 2012.
MEMBER MEMBER PRESIDENT
APPENDIX OF EVIDENCE
wDOCUMENTS MARKED
For Complainant:
Ex.Nos. |
DATE |
DESCRIPTION OF DOCUMENTS |
A1 |
29-03-08 |
Copy of Standard Fire and Special Perils policy |
A2 |
01-04-08 |
Copy of license bearing No.CA89/2008-13 issued by the Chairman, Agricultural Market Committee, Guntur |
A3 |
|
Copy of fire claim form |
A4 |
|
Copy of stock register of Agricultural Market Committee, Guntur |
A5 |
28-01-09 |
Copy of letter addressed to the 1st opposite party by the Selection Grade Secretary, AMC, Guntur |
A6 |
10-10-02 |
Copy of partnership deed |
A7 |
30-09-11 |
Copy of registered notice issued on b/o complainant to opposite parties |
A8 |
03-10-11 |
Postal acknowledgements (2) |
For opposite parties:
Ex.No |
DATE |
DESCRIPTION OF DOCUMENTS |
B1 |
22-09-09 |
Copy of Minutes of Joint Review meeting in DRC Meeting hall at Collectorate by the Dist. Collector, Guntur |
B2 |
|
Fire survey report submitted by the surveyor Ch. Veera Babu, chartered accountant |
B3 |
|
Details of market phase for the month of March, 2008 |
B4 |
30-04-08/ 02-05-08 |
Copy of mirch stock register of AMC, Guntur |
B5 |
|
Settlement intimation voucher in full and final settlement of complainant’s claim |
B6 |
|
Claim disbursement voucher |
B7 |
21-12-09 |
Letter addressed by Ch. Veera Babu, Chartered Accountant to the complainant |
B8 |
27-01-10 |
Copy of letter by 1st opposite party to the complainant |
PRESIDENT
