O R D E R
Per Sri A. Hazarath Rao, President:-
The complainants filed this complaint u/s 12 of the Consumer Protection Act seeking Rs.7,37,888/- being the value of burnt chilli bags; Rs.3,20,980/- 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 was doing commission business in chillies at AMC, Guntur. The complainant firm took insurance Standard Fire and Special Perils policy from the 1st opposite party on 29-03-08 for Rs.7,37,888/- vide policy No.620901/11/07/011/00000759. The policy was valid upto the midnight of 28-03-09. On 03-05-08 during early hours a major fire accident took place in the AMC Yard, Guntur and in the said accident 2,51,746 bags of chillies were gutted to fire causing loss to the farmers who brought the chilli bags 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.620901/11/07/011/00000759 for stock worth of Rs.7,37,888/-. 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 claims for structures 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 B.J. Markandeyulu as surveyor to assess the loss allegedly caused and he submitted his report on 08-01-10. The complainant submitted the letter of Agricultural Market Committee dated 28-01-09 stating that the chillies worth of Rs.7,37,888/- belonging to the complainant were gutted to 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 in its letter dated 22-01-10 required the complainant to furnish the stock register, producer tak patties and commission tak patties which the complainant failed to do so. The surveyor concluded that there was no loss of stock pertaining to the complainant and closed the claim for stocks. The complainant submitted two claims forms. In the 1st claim form submitted on 10-05-08 the complainant claimed for 441 bags of red chillies and 91 bags of white chillies. In the 2nd claim form submitted on 25-09-09 the complainant claimed for 556 bags of red chillies and 101 bags of white chillies and thus both the claims are contradictory. Some business men who has license in agricultural market committee will renew the license though not doing business for some reason or the other. The complainant has not done any business during April, 2008 and there was no stock of chillies at the relevant time. The opposite party did not commit any deficiency of service. The complaint therefore be dismissed.
5. Exs.A-1 to A-9 and Exs.B-1 to B-8 on behalf of the complainant and opposite parties were marked respectively.
6. Now the points that arose for consideration are:
1. Whether the complaint is in time?
2. Whether the complaint is maintainable for not impleading the farmers to whom the stock belonged to?
3. Whether the opposite parties committed deficiency of service and if so by whom?
4. Whether the complainants are entitled to compensation?
5. To what relief?
7. Admitted facts in this case are these:
1. The complainant insured its stocks for Rs.7,37,888/-(Ex.A-1=Ex.B-8).
2. The policy was valid from 29-03-08 to the midnight of 28-03-09 as mentioned in Ex.A-1=(Ex.B-8).
3. The complainant was doing business in plot No.91 in AMC, Guntur (Ex.B-2).
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-3).
8. POINT No.2:- 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.
9. POINT No.1:- According to the opposite party also the complainant submitted claims forms on 10-05-08 and 25-09-09 and it repudiated its claim on 22-01-10 and intimated to the complainant under registered post with acknowledgement due. The opposite parties did not file either the postal receipt or the acknowledgement of the complainant to show that the complainant received repudiation letter. In the absence of either postal receipt or acknowledgment of the complainant the claim is deemed to have been pending. We therefore opine that the complaint is in time and answer this point against the opposite parties.
10. Points 3 &4:- The complainant claimed Rs.7,37,888/- 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 Collector and District 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 Agricultural Market Committee authorities have to certify the stock of mirchi bags burnt at Commission agents shop and the Engineering Department of Agricultural Market Committee had to issue value certificate and plan 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 Agricultural 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 learned counsel for the complainant contended that the complainant firm did not receive original of Ex.B-7 though sent under registered post. As already observed the opposite party neither filed postal receipt nor postal acknowledgment to show that it sent or posted Ex.B-7 to the complainant. A duty is cast on the opposite party to inform/intimate its insured by registered post. It is not the case of the complainant that it sent the documents referred to in Ex.B-7 to the opposite party. Under those circumstances, giving a direction to the complainant to submit the documents referred to in Ex.B-7 under acknowledgment to the opposite party and in turn directing the opposite party to process the claim will meet ends of justice as it was held that the claim is in time. We therefore answer these points accordingly.
11. POINT No.5:- In view of above findings in the result the complaint is disposed off with the following terms:
1. The complainant is directed to submit the documents referred to in Ex.B-7 within two weeks under acknowledgement due from the date of receipt of this order.
2. The opposite parties in turn are directed to process the claim within six weeks thereafter.
3. There is no order as to costs.
Typed to my dictation by Junior Steno, corrected by me and pronounced in the open Forum dated this the 27th day of July, 2012.
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
DOCUMENTS MARKED
For Complainant:
Ex.Nos |
DATE |
DESCRIPTION OF DOCUMENTS |
A1 |
29-03-08 |
Copy of Standard Fire and Special Perils policy |
A2 |
30-04-08 |
Copy of license bearing No.CA22/2008-13 issued by the Chairman, Agricultural Market Committee, Guntur |
A3 |
|
Copy of extract of mirch stock register/AMC, Guntur |
A4 |
28-01-09 |
Copy of letter from the Selection Grade Secretary (FAC), AMC< Guntur to the 1st opposite party |
A5 |
01-04-04 |
Copy of deed of retirement |
A6 |
01-04-04 |
Copy of partnership deed |
A7 |
01-04-04 |
Copy of letter by complainant to the Assistant Commercial Tax Officer, Guntur. |
A8 |
30-09-11 |
Copy of registered legal notice on b/o complainant to opposite parties |
A9 |
|
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 |
08-01-10 |
Survey report submitted by the surveyor B.J. Markandeyulu |
B3 |
10-05-08 |
Fire claim form |
B4 |
25-09-09 |
Fire claim form |
B5 |
29-04-08 |
Copy of extract of Mirch stock register |
B6 |
15-05-08 |
Copy of letter of complainant to the surveyor |
B7 |
22-01-10 |
Copy of letter from 1st opposite party to the complainant |
B8 |
29-03-08 |
Standard Fire and special perils policy |
PRESIDENT
