Karnataka

StateCommission

CC/72/2014

M/s.Yeshashvi Steels and Alloys Pvt. Ltd - Complainant(s)

Versus

The Branch Manager - Opp.Party(s)

S.V Babu & Smt . Malathi Reddy

08 Jul 2021

ORDER

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BANGALORE

 

DATED THIS THE 08^TH DAY OF JULY 2021

 

 

PRESENT

 

MR. KRISHNAMURTHY B. SANGANNAVAR      : JUDICIAL MEMBER

MRS. DIVYASHREE M.                                     : MEMBER

 

Consumer Complaint No. 72/2014

 

M/s. Yeshashvi Steels and Alloys Pvt. Ltd Registered office at Sy.No.405,406 & 407 P.B.No. 4 Cowl Bazar, Halkundi Village, Bellary, Dist: Bellary-583 102. Rep. by its General Manager Mr.Lokanath Yadav   (By Sri. S.V Babu & Smt. Malathi Reddy) V/s

..…Complainant

1.  The Branch Manager      The Oriental Insurance Company Limited,      Bellary Cantonment Branch, Cantonment,      No.44/45, Ward No.25/B, RTO Lane,      Radio Park, Bellary-583 103.      2.  The Divisional Manager      The Oriental Insurance Company Limited,      Divisional Office, S.L.V. Towers,      Main Road, Parvathi Nagar,      Bellary-583 103.       3.  The Chief Regional Manager      The Oriental Insurance Company Limited,      Sumangala Complex, Opp: H.D.M.C,      Lamington Road, Hubli-580 020.   4.  The Managing Director      The Oriental Insurance Company limited,      Corporate & Registered Office,      Oriental House, A-25/27, Asaf Ali Road,      New Delhi-110 002.       (By Sri. Manoj Kumar M.R.)

……Opposite parties

O R D E R

 

By Mr. KRISHNAMURTHY B. SANGANNAVAR, JUDICIAL MEMBER

 

This is a complaint filed under Section 17 of the Consumer Protection Act, 1986 for an award  of Rs.54,17,612/- along with interest at the rate of 18% p.a. from 12.01.2013 till the date of payment towards loss suffered, Rs.5.00 lakhs towards agony, harassment and Rs.2.00 lakhs towards litigation costs from OPs.

2. The case of the complainant in brief as stated: that the complainant is a registered private limited company manufacturing sponge iron. The said company availed insurance risk facility under the category of ‘Standard Fire and special perils’ insurance policy from OPs for total amount of Rs.16,25,000,00/- for the period from 07.12.2011 to 06.12.2012. 
3. On 09.05.2012 and 10.05.2012, there was a heavy rainfall and winds in Bellary due to which the coal ore stored in the factory premises was washed away and sponge iron stock was dioxides due to wet condition.  The tin sheet was blown off due to heavy wind in the said vicinity within the jurisdiction of Bellary.  The Tahsildar, Bellary has given a report regarding heavy rain fall in Bellary on 10.05.2012.  The metrological report shows there was rainfall for 24 hours ending at 8.30 hrs. on 10.05.2012 is 15.2 mm of rainfall and 11.05.2012 at 21.6 mm. of rainfall.  As there was heavy rainfall on 10.05.2012 with ice cubes from 04.00 pm to 10.00 p.m. resulting thereby the coal stored in open yard washed away and flown away to a place nearby open drains.  The tin sheets were blown off by heavy wind in one sponge iron shed and mechanical store room because of heavy rain and wind, water entered from open side of tin shed wherein sponge iron was stored and sponge iron  got damaged as rusty de-oxides.  Sponge iron stock was dioxides due to wet condition and kiln were closed down due to power failure and failure of generator.  This fact was brought to the notice of OP No.1 orally at 5.30 p.m on 10.05.2012 and OP No. 1 promptly deputed one Mr. N. Ganesh, surveyor to conduct preliminary survey to assess the loss suffered by the complainant.  The surveyor appointed by OP No.1 proceeded to make inspection of the factory premises on 10.05.2012.  However, he could not reach the factory premises due to over flowing of nalas and road leading to the factory premises were over flooded and closed.  Hence, he returned back.  However, he confirmed and reported rain water was heavy and open drains were over flowing during his visit of the said place.  Mr. N. Ganesh once again visited factory premises on 11.05.2012 and conducted preliminary survey along with officers of OP Nos. 1 & 2.  Subsequently, on 15.05.2012 and 16.05.2012 visited the factory premises and conducted inventory of stock of coal and sponge iron available at factory, accordingly weighed in his presence.
4.  The complainant had made a total claim of Rs.99,51,000/- consisting of loss of coal at Rs.48,96,400/-, loss of sponge iron at Rs.47,86,600/- building damages at Rs.2,50,000/- and damage of computer system at Rs.18,000/- before OP Nos. 1 & 2 towards value of property destroyed/damaged.  The said claim was based on approximation and without any detailed investigation or survey.
5. However, after survey conducted by Mr. N. Ganesh, the OPs appointed another final surveyor Mr. B.D. Mohta.  Mr. B.D. Mohta after physical inspection and examining the records, books of accounts, statutory records and reports filed by complainant with the statutory authorities and banks etc., gave a comprehensive report assessing total loss at Rs.82,98,878/-.  Even after such final survey report of B.D. Mohta, OPs obtained Opinion Report from one Mr.Venkateshwar Prasad, Chartered accountant who also concurred with the earlier report submitted by the surveyors.  However, the OPs have repudiated the claim on flimsy grounds.  The surveyors who are qualified Cost and Management Accountants and Chartered Accountant closely scrutinized and examined books of accounts and after having satisfied about the quantities of coal which was available in the stock required for manufacturing of sponge iron and the stock which was washed away due to the flood have certified and determined the loss.  The surveyors examined Daily Consumption and Production Report and Form 4 also referred as Daily Coal Stock Statement and quantified the loss.  The iron ore and iron ore pellets and coal are the basic raw materials used in the manufacture of sponge iron.  The iron ore is raw in nature with impurities and pellets are refined and semi finished iron.  The complainant was using iron ore till December 2011 and thereafter they used pellets / broken pellets.  The coal consumption varies with its use of raw-materials, pellets/broken pallets/ iron ore or any combination of these raw material.  The coal consumption ratio also varies depending on the quality of coal such as South African/ Indian / Indonesia / Australian Coal.  The variation in coal consumption is found due to mixture of various different quality coals mentioned above.  The claim of the complainant is for damage and loss to stock and not for production.  The OPs have taken more than one year to repudiate the claim on erroneous grounds which amounts to deficiency in service.  The legal notice was constrained to be issued on OP Nos. 2 and 3 before this complaint could be raised and the OPs have replied the notice vide their reply dated 07.04.2014 stating that repudiation of claim is fair and correct. They justified their actions. It is therefore the Complainant Company, with no option raised a consumer complaint under Section 17 of Consumer Protection Act 1986 before the Commission.
6. The OP Nos. 1 to 3 resisted the claim of the complainant contending that complainant has twisted and distorted the same to suit its convenience to claim false reliefs from the Commission.  They admit issuance of Standard Fire and Special Peril policy vide policy bearing No.472392/11/2012/3 with location of the risk as Sy. No.405, 406, 207 of Halukundi Village, P.B.No.04, C.B. Bellary in respect of description of risk and sum insured towards plant and machinery at Rs.14.00 crores, stock at Rs.2.00 crores and building at Rs.25.00 lakhs.  They admit that the complainant had submitted claim intimation letter dated 11.05.2012, wherein stated as under:

“* Coal washed away through flood around 600MT to 630MT, basic cost of coal is Rs.6,975/- and freight is Rs.910/- per MT.  Total value around Rs.50 lakhs to 51 lakhs (bills enclosed).

* We had sponge iron closing stock was 326 MT on 10^th March 2012 out of this around 220 MT to 245MT of sponge iron reoxided due to wet condition, it is not usable.  Present market cost is Rs.20,000/- MT.  total value of sponge iron around Rs.47 lakhs to 49 lakhs.”

7. The above narration of facts is so demonstrated as to highlight the fact that the complainant had so failed to produce the relevant and necessary certificate from the concerned authority regarding the wind and rain data recorded at Halukundi Village, Bellary and that only wind speeds above 90 kmph are classified as storm, or tempest etc., so as to justify the case of complainant as to washout of coal and or sponge iron or Iron Ore Pellet from inside the coal shed and or said to be stored outside the coal shed, as to the intensity of the flow of water to have the potential of washing away of 517 MTs of coal.  More so, on intimation of the alleged loss by the complainant, the respondent having appointed Mr. N. Ganesh, as to conduct the preliminary survey, having submitted preliminary survey report had so having visited the factory and on 16.05.2012 the stock of Coal and sponge iron available at factory, weighment was done in the presence of said surveyor and since produced as Document No. 8 by the complainant as enclosure to the complaint.  As well, the Opinion Report Dt.22.07.2013 of CA, Venkateshwara Prasad K., Insurance Surveyor & Loss Assessor in regard to the opinion and Tabular column relating the Coal is emphasized by the respondents in so repudiating the claim of the complainant.
8. As well, the other important aspect is that of an element of gross misrepresentation on the part of the insured in declaring the holding physical custody, wherein for the month of April 2012, as on 30^th of April 2012, as per the Excise Return filed by the complainant for the month of April 2012 is 195.64 MT and that had short declared the quantity of sponge iron manufacture during the month of April 2012 to the extent of 122 MT being the quantity produced on 30^th April 2012.  ER-1 the Opening stock of sponge iron is only 73.76 MT whereas the closing stock of sponge iron as mentioned in ER-1 for the month of March 2012 is 134.38 MT.  As well, that the production of sponge iron during the month of April 2012 as per ER-1 is 2992 MT but as per the statement submitted by the insured the production Qty is 3114 MT and that the sponge iron statement for the month of April 2012 submitted by the insured shows an excess production of 122 MT.  Further, as per the Insured’s Finished Goods Account Statement from 01.05.2012 to 09.05.2012 the sponge iron manufactured is 920 MT’s and removal of sponge iron amounts to 914.61 MT’s resulting in a likely closing stock of 323.03 MT’s of sponge iron as on the date of incident of alleged loss, in view of the above facts, the above complaint, is thus not sustainable in the eye of law and as such on the said aspect, the above complaint deserves to be dismissed in limine on the aspect of maintainability of the above complaint.
9. They admit appointment of surveyor Mr.N. Ganesh, B.D.Mohta & Associates and Mr. Venkateshwar Prasad.  Thus, on the basis of such reports, claim of the complainant being so scrutinized by chartered accountants, certain clarification was sought and C.A., Mr. Venkateshwar Prasad submitted his opinion, investigation analysis report and thereafter it was forwarded to Chartered Engineer M/s. R.A. Rajagopal, who has submitted on scrutinizing the entire claim documents to repudiate the claim on standard basis. 
10. The insurance policy is a document of utmost confidence.  Yet the complainant is guilty of misrepresentation and non-disclosure and hence, contract is vitiated in view of the law declared in MKJ Corporation Vs. United India Insurance Co. Ltd.  The OPs and their officials had so dealt with the claim of the complainant as a prudent insurer without any loss of time, had so appointed IRDA approved surveyor, obtained opinion and as well necessary clarification and had addressed letter dated 13.02.2013 had repudiated the claim, as such complainant is not entitled for any of the reliefs sought in this complaint.
11. In view of completion of the pleadings of parties to the complaint Commission received affidavit evidence, Ex.C1 to C17 and Ex.R1 to R28 during the course of enquiry. After conclusion of the enquiry, heard Learned Counsels on record for the respective parties.  Now, we have to examine whether OPs are fair, justified and correct to repudiate the claim of complainant and to decide whether complainant has made out a case for entitlement of claim sought in the complaint for the alleged deficiency in service on the part of OPs  as alleged ?
12. Let us examine vital document received and marked as Ex.C1 is a Standard Fire & Special Perils policy schedule issued in the name of M/s. Yeshashvi Steels & Alloys Pvt. Ltd.  The address of the company is Sy.No. 405, 406 & 407 of Halkundi Village in Bellary Tq., Bellary District covering the period commencing from 18.09 hrs on 07.12.2011 to mid-night 06.12.2012.  This policy issued by Ops collecting gross premium amount of Rs.1,23,926/-.  The location of the risk is none other the address of the company stated above.  The description of risk is in respect of sponge iron plants and steels and alloys.  The plant and machinery insured for Rs.14.00 crores, stock at Rs.2.00 crores and building for Rs.25.00 lakhs.  Thus, sum assured under this policy is for Rs.16,25,00,000/-.  This policy was issued on 07.12.2011.  In so far as issuance of such policy in the name of complainant herein is not in dispute. 
13. It is the case of the complainant that on 09.05.2012 from 10.00 p.m. to 12.00 mid-night and again on 10.05.2012 between 5 p.m. to 10.00 p.m. as there was a heavy rainfall coupled with winds and hail storm at Bellary, complainant suffered huge loss at the risk covered location to the coal which was stored in the premises as it was washed away and sponge iron stock was deoxidize due to wet condition and kiln were closed down due to failure of power and generator.  It is found from the evidence of complainant that this fact was brought to the notice of the OP No. 1 orally at 5.30 p.m. on 10.05.2012 and OP No. 1 promptly deputed Mr.N.Ganesh, Surveyor to conduct preliminary survey and assess the loss suffered by the complainant due to the said peril taken place on account of heavy rain fall with wind storm at the factory premises.
14.  In order to corroborate the aforesaid fact Ex.C2 preliminary survey report dated 31.05.2012 is produced by the complainant, which discloses that Mr.N.Ganesh, Surveyor & Loss Assessor pursuant to instructions received on 10.05.2012 from Divisional Manager of OP No.1, confirm having called to the location of the insured, had inspected the place and conducted the preliminary survey of the affected place, wherein could see, Mr. S.P. Venkatesh as the Managing Director of the complainant during his inspection found two rotary kilns with a production capacity of 30,000 TPA each for production of sponge iron, calibrated iron ore, sized coal and additives like dolomite are required.  For preparation of raw material mentioned above, they have set up a raw material crushing and screening plant where there is cone crusher, jaw crusher, vibrating screens, belt conveyors.  In so far as occurrence of the alleged peril, he rather corroborated the complaint averments and  found  damages taken place as guided by Mr. Lokanath Yadav and P.V. Sridhar, shift in-charge on 11.05.2012 at 8.00 a.m. It is now relevant to mention herein under the following damages at the risk location as found:
    1. Coal & Spong Iron Storage sheds: This three storage sheds size 25 Mts. X 15 Mts.  The side walls of this building are being constructed with hallow brick masonry to a height of 4 feet over which steel trusses were installed and covered with G.I. Sheets.  About 4 Nos. of 10 Mts. long sheets and 4 Nos. 8 Mts. Long sheets were found missing.  In this sheds coal and spong iron is stored.  It is noticed at many places the sheets were found damaged.  Thus, rain water entered the shed, damaging the coal and spong iron.
    2. Product Storage Shed : the building shed is constructed with fabricated steel structure covering with the sheets, housing 4 Nos. of storage bins of size 5.5 Mts. X 5.5 Mts. for storage of the finished product of spong iron.  Because of the wind pressure some of the sheds were found missing / damaged on the structure and were scattered on the ground.  In view of this, rain water entered inside storage bins and damaged the spong iron.
    3. Product separation shed : this building shed size 18 Mts. X 10 Mts. and 18 Mts. X 12 Mts. is constructed with fabricated steel structure covering with the G.I. sheets.  About 12 Nos. of 10 Mts. long sheets and 10 Nos. of 8 Mts. long sheets were found missing.  Due to heavy wind the steel structure was also got mis-aligned.
    4. Char shed: this building shed size 6 Mts. X 8 Mts., 3 Mts. X 6 Mts., and 3 Mts. X 6 Mts. is constructed.  About 3 sheets of 10 Mts. long is found missing from the structure.
    5. Mechanical Room Shed : this building shed size 8 Mts. X 4 Mts. is constructed.  About 6 Nos. of 10 Mts. long sheets and 4 Nos. of 8 Mts. long sheets is found damaged.  Due to heavy wind the steel structure was also got mis-aligned.

As per oral information given by Mr. Lokanath Yadav, General Manager and my physical verification reveals that the following stocks were damaged.

1. Some part of the coal was placed on open area for drying purpose, where unfortunately there was heavy rains fallen.Due to this the entire coal was flushed out from the open area.

2.  
3.  

15. It is also found from his preliminary survey report as to his accompanying Mr. CMA B.D. Mohta on 15.05.2012 and 16.05.2012 at the time of conduct of survey of the risk location of the insured.  He has reported that weighment of stock of coal and sponge iron available at factory was held in his presence which would play a vital importance.  He has also reported that insured has submitted loss/damage to the extent of Rs.1.2 crores.  This report is submitted along with copy of claim intimation letter, policy copy, 55 photographs, and stock report of coal and sponge iron.  Ex.C3 is a claim under fire policy submitted to OP No.1  claiming destruction of property and damage at risk location amounting to Rs.99,51,000/-. 
16. The next important document would be Ex.C4 survey report of Mr.CMA B.D. Mohta, Surveyor & Loss Assessor appointed by Ops. He  has submitted report on 05.11.2012. In his report it is found that he was requested by OPs on 11.05.2012. During the course of his conduct of the survey he has observed that the Tahsildar Bellary has issued a letter informing there was heavy rainfall on 10.05.2012 recording 34.9 mm from 8 a.m. to 8 a.m.  The Gram Panchayat Karyalaya, Halkundi, has also issued certificate dated 12.05.2012, certifying there was heavy rainfall and snowfall on 10.05.2012 from 4.15 p.m. to 9.30, resulting thereby  the stock of coal washed away in drain.
17. Thus, noting down the above such vital piece of evidence on record, it is now appropriate to make mention that the Commission had the benefit to see the video graph of rainfall with hurricane at the location of the risk, belonging to insured through DVD marked as Ex.C17 and the photographs marked as Ex.C16. Thus, these vital documents are corroborating not only the complaint averments that the rainfall at the said location was a rain hurricane and not an ordinary rainfall and to that effect the report of Mr. N. Ganesh, Mr. B.D. Mohta, also corroborated. These two Surveyors are none other the authorized surveyors and loss assessors appointed by OPs, establishes that there was a rain hurricane at that place and even ice cubes were fallen at the said place as could be seen from the video graphs seen by us, which has affected the insured production activity, besides, washing out of stored iron ore and sponge iron drastically damaged by deoxidized due to wet condition of the entire vicinity.  In such situation, we are constrained to believe the evidence of complainant and their documents which are stated above. In view of such situation happened at once   on the relevant dates, at the place of risk location of the insured, we are of the view that the rain hurricane with storm water flooded down, has to be termed as storm or tempest. To find support Director, India Meteorological Department has issued weather report of Bellary, stating that there was rainfall of 21.6 mm. for 24 hours ending at 8.30 hrs. on 11.05.2012 as per part time Bellary Observatory, as such it further corroborates and  establishes that there was a very heavy rainfall and hail storm on the evening of 10.05.2012 within the said vicinity, which has affected the insured’s production activity, besides destruction or damaging properties stored at the location of risk, in respect of coal which amounts to Rs.40,78,675/- as per Mr. B.D. Mohta, Surveyor of OPs as against Rs.44,92,315/- assessed by insured and in so  far as sponge iron is concerned, surveyor has assessed at Rs.42,84,000/-.  Thus, they have assessed the loss of coal and sponge iron totally at Rs.83,62,675/- which could be seen from the said report.
18. It is pertinent to take note of the fact that the surveyor, before arriving at his final conclusion for consideration of claim of the insured had  verified the stock register of coal and sponge as well as bank statement for May 2012 in detail and  thereby assessed  the total loss accounted at Rs.97,15,736/-.
19. In such assessment of the total loss, the Surveyor, had also reported, that insured has submitted total value of stock as on 10.05.2012 worth total at Rs.2,90,43,483/- duly certified by Mr. Suresh R. Gunjally, Practicing Cost Accountant and as per policy, the risk is covered for stock worth Rs.2.00 crores.  In such situation, as there is an under insurance and claim for stock is subject to pro-rata condition, thereby considered loss at Rs.57,58,727/- only. 
20. Further as total value of building as on 31.03.2012 as per audited balance sheet is Rs.45,90,670/- after that there is addition of Rs.39,200/- as per general ledger, as such the total value of building as on 10.05.2012 amounts to Rs.46,29,70/- as against sum assured for Rs.25.00 lakhs, as such considering these facts found during the course of his inspection of the factory premises and the risk location, concluded, there is under insurance and the claim is subject to pro-rata average condition, thereby assessed loss towards building only at Rs.14,647/-.  Thus, considering all such intricacies of the claim with proof found at the risk location, arrived total claim for stock and building after depreciation, salvage and under insurance is assessed totally at Rs.57,73,374/- and  as per general exclusion clause the insured / complainant has to bear first 5% of each and every claim, so the surveyor after deducting Rs.2,88,669/- towards exclusion at 5% assessed the claim payable to be considered at Rs.54,84,705/-. 
21. In order to submit such report the Surveyor has considered not only the preliminary survey conducted by Mr. N. Ganesh, but weather report, photographs and one CD showing heavy rainfall with snow and water logging at several places in the factory premises resulting beach of boundary thereby flowing of coal from yard to drain and sheds zinc sheets separated, damaged and blown off.  It is found from the enquiry evidence that this Surveyor   has verified all the records in detail before he could arrive at a final conclusion to submit report.  
22. As already stated above, the Surveyor has also considered as to the under insurance and the no claim to be considered by OPs.  He has reported that there is no salvage of coal, since there is shortage because of coal washed away in the drain,  since insured is not interested to retain salvage of sponge iron and not able to dispose of such salvage, as such reported the underwriters may take steps for disposal of the salvage to realize the value of damaged sponge iron is nothing but as found at the spot which cannot be disbelieved by the commission on any of the grounds set up by the Ops in their version or evidence and arguments. 
23. It is to be noted down herein as found from the report of the surveyor, loss assessed is considered to be reasonable and OPs may call for further required documents if any from the insured, as such they have also obtained report from yet another surveyor and the opinion of the Charted Accountants, which would not establish a case of repudiation of the claim.
24.  The first two surveyors, conducted survey as requested by OPs.  In other words, they are their own surveyors and loss assessors, submitted report as on 05.11.2012 to consider claim payable to insured/complainant at Rs.54,84,705/- which is not considered by the OPs, resulting thereby raising of this complaint seeking reliefs under the CP Act. It is to be noted down herein by the commission that on close scrutiny of the enquiry papers, the Surveyors did their job to the satisfaction of the Ops and not the complainant.  They did verified almost all the documents which are now placed on record by the OPs but also exercised their abundant wisdom before submission of the report.  In such situation, it is now not necessary to reiterate all those documents one by one except to make mention of a document produced in respect of a claim case concerning the National Insurance Company Ltd. of the same vicinity, since it is found from such document that it was settled in favour of insured holding similar such company within the same vicinity, who had suffered loss only due to rain hurricane on similar such dates. It is shown that the said place is situate near a place of insured herein in the present complaint and the claim was settled by the insurer at Rs.87,90,373/- towards full and final settlement. The said claim was in respect of M/s. SSP Sponge Iron Co. Ltd.  This document is received and marked as per Ex.C15. This was settled by the insured on the basis of the report submitted by the survey and loss assessment report dated 17.08.2012 by one Mr.C.Seshagiri Rao. It is found from the said document that it was also in respect of loss of destruction of coal and sponge iron stored at the Sy.No. 98-D, Hirehal, Harihal, of Ananthapur Dist.  This report was submitted in consultation with NNMDC, Professional consultancy.  In this report we could see cause and extent of damage, the gale which developed over the night on 10.05.2012 was quite strong and it uprooted the roof sheets etc., the claim was made to an extent of Rs.1,88,76,425/-, however, National Insurance Company one of the General Insurance Company, settled for Rs.87,90,373/-.  In this regard it is true that in order to claim loss for destruction or damage of coal and sponge iron at the risk location, complainant herein has to establish its case from his own documents and not from documents like Ex.C15, which is in respect of entirely a different location and from a different insured.  However, the facts remain could be seen and it is established that the said claim was also in respect of loss of coal and sponge iron in respect of M/s. SSP Sponge Iron Pvt. Ltd. which is situated within the vicinity of the risk cover area belonging to complainant herein.  Although Hirehal village geographical jurisdiction comes within the jurisdiction of State of Andhra Pradesh, Halkundi village of Bellary  Tq. in Karnataka State, is almost adjoining the said village, where this rain hurricane peril was occurred on 10^th and 11^th of May 2012, as  such to that extent, the afore said document has to be considered as relevant, since, rain hurricane resulting flooding of water in to the location risk place was occurred on 10.05.2012 resulting thereby stock of coal and sponge iron stored in the factory premises as per weighment and assessed by the loss assessor and surveyors appointed by the OPs was suffered by complainant. 
25. In the above such discussion, such incident has to be termed rather a tempest at once or a peril as defined in the policy issued by the insured, resulting thereby complainant has to suffer loss to such extent which has to be held covered under the policy obtained as per Ex.C1 by the complainant.  In such view we found force in the arguments of Learned Counsel for complainant that the repudiation of Ex.R4 claim made by the complainant is unfair   amounts not only unfair trade practice and deficiency in service on the part of Ops, pursuant to the policy Ex.C1 obtained from complainant.
26. It is found from evidence that the company of complainant clarified as to the variation of coal consumption as per Ex.R12 pursuant to Ex.R13 clarification sought by OPs.  Mr. B.D. Mohta a Senior Surveyor has taken into consideration all these pros and cons of loss of coal and sponge iron stored at the factory premises in his detailed report.  In fact he was called before the Commission and was present and explained as to his report and he has reiterated the same. It is also to be noted herein that Mr. CA. Venkateshwara Prasad, Insurance Surveyor and Loss Assessor, in his opinion report Ex.R20 has also concluded washed away coal stock at 519.23 MTS which in fact is even higher than could be found in final survey report submitted by Mr. B.D. Mohta i.e., 517.00.  Further, to be noted herein, washed away coal stock claimed by insured/ complainant is 565.00, however, B.D. Mohta, the Surveyor arrived at 517.00 as washed away coal stock and Mr.CA. Venkateshwara Prasad K. under first situation arrived at 519.23 which is not come to the assistance of OPs to contend that the survey conducted by first two surveyors in particular Mr.B.D.Mohta, is incorrect or not reasonable, considering their own opinion report marked as Ex.R20.  The OPs have collected relevant Returns of Excisable Goods and availment of CENVAT credit for the month of May and year 2011 in form ER-1 of Central Board of Excise and Customs and similarly, obtained such returns for the relevant period were of considered by these surveyors to arrive to consider the claim of the complainant at Rs.54,84,705/- which cannot be said either excess or exorbitant as contended by Learned Counsel for OPs.  In so far as sponge iron claim, M/s.R.A.Rajagopal, Chartered Engineers submitted a report dated 10.10.2013 as per Ex.R23 as requested by OPs computing the flood damages sponge iron claim assessing loss for 300 tons damaged sponge iron and he arrived at Rs.21,77,100/- which in fact corroborate the survey report of Mr.B.D. Mohta and Associates, who have assessed the loss of sponge iron at 238 MT.  Thus, considering all these documents along with assessment sheet submitted by Ops, cannot be justified repudiation of claim of complainant company on any of the grounds urged either in their version or as contended during the course of arguments.  In such conclusion, Commission  of the final view that as Surveyors are appointed by the Ops under the provisions of Insurance Act and they are registered/authorized persons as such their reports are to be given due importance. Hence we by giving due importance to such reports which are placed not only by the complainant but by the Ops, we  proceed to hold that act of OPs amounts not only an unfair trade practice but deficiency on their  part for not settling the claim in time.  It is therefore, besides the claim amount Complainant Company is also entitled for compensation and litigation charges, since, this matter received in this Commission on 25.04.2014 and now we are deciding today in the month of July 2021. 
27. Accordingly, Commission proceed to allow the complaint filed under Section 17 of the Consumer Protection Act 1986 and direct the OPs do pay Rs.54,17,612/- towards the loss suffered by the complainant along with interest at the rate of 6% p.a. from 12.01.2013 till the date of payment and do pay Rs.1.00 lakh as compensation towards agony, inconvenience and Rs.50,000/- towards litigation cost within 30 days from the date of receipt of this order.

Sd/-

JUDICIAL MEMBER

 

Sd/-

MEMBER

CV*