Per Hon’ble Mr.S.R.Khanzode, Presiding Judicial Member
This consumer complaint pertains to not settling the insurance claim, which arose on account of fire on 09/01/1998 at the factory premises of the complainant and insured with opponent no.1-M/s.Oriental Insurance Co.Ltd. (herein after referred as ‘Insurance Company’) and the stock of which was hypothecated with opponent no.2- Bank of Baroda. The consumer complaint was filed on or about 07/12/1998 inter-alia claiming compensation towards the loss of goods at `18,30,590/-, `50,000/- towards loss due to penal interest paid to the Financial Institution i.e. Bank of Baroda and `25,000/- as compensation for harassment, etc.; total amounting to `19,05,590/-. Said compensation is claimed as per the prayer clause (a) in the complaint and prayer clause (b) refers to claim of `10,000/- towards as costs. As per the order sheet and the order recorded accordingly dated 17/05/2001 in this complaint, the claim was settled at `9,02,695/- as the full and final settlement of the claim of the actual damages and costs. Said payment was also made on the same date. Out of `9,02,695/- as per instructions of the complainant `6,60,630/- was paid to opponent no.2 -Bank of Baroda, while remaining `2,42,065/- were paid to M/s.Gujarat State Finance Corporation (GSFC) i.e. another financial institution, which financed the amount to the complainant. Said order further observed that the claim made as per prayer clause (a) except for `50,000/- penal interest claimed and costs of `10,000/- claimed as per the prayer clause (b); stood settled. Therefore, complainant proceed only in respect of this unsettled claim of `50,000/- and costs of `10,000/-, supra. Heard Mr.U.B.Wavikar-Advocate for the complainant. Mr.Nitin Bhuwania-Advocate for opponent no.2. None for opponent no.1. Perused the respective pleadings of the contesting parties as well as affidavit of Mr.Ghanshyambhai Vadodaria filed on behalf of the complainant dated 26/03/2012. Para 17 of the complaint reads as under:- “The complainant submits that complainant has suffered loss of `18,30,590/- towards the damage to the goods and bank has therefore knowingly recovered balance stock from the complainant through court’s order. The complainant submits that bank is charging interest at the rate of 23% on the outstanding amount which is required to be repaid to the complainant by the insurance company. The complainant submits that as such there was no outstanding prior to the date of possession taken over by the GSFC. The complainant insured has assessed its loss and claim under these two policies and under this complaint are as under:- (a) Loss due to damage to goods `18,30,590/- (b) Loss due to penal interest `50,000/- (c ) Compensation for harassment, etc. `25,000/- Total….. `19,05,590/- (Rupees Ninetten lakhs five thousand five hundred ninety only). The complainant reserves its right to claim further interest till the actual date of payment.” Thus, it is clear that the claim of penal interest of `50,000/- would at the most relates to the interest required to be paid by the complainant to opponent no.2- Bank of Baroda due to delay in settlement of the insurance claim. We may clarify at this stage that there is no evidence on record as to what actual interest was paid by the complainant to opponent no.2- Bank of Baroda after the incident of fire dated 09/01/1998 till the complaint was filed on 07/12/1998. The Insurance Company in their written version brought on record certain facts about referring to the events about the survey carried out by their surveyor and in between on certain doubts raised why the investigator was appointed and on submission of his investigation report dated 25/11/1999, the final report was submitted by the surveyor on 24/01/2000 and recommending settlement of the claim at `9,02,694.67 ps. The complainant by its letter dated 20/01/2000 addressed to the surveyor agreed to the assessment of the loss made by the surveyor at `9,02,695/- and shown its acceptance to accept the said amount towards the full and final settlement of their claim. Therefore, when the surveyor referring to these facts submitted the final report on 24/01/2000, the Insurance Company processed the same accordingly and on 02/02/2000, informed to the complainant that they are willing to settle the claim as recommended by the surveyor and accepted by the complainant, at `9,02,695/- and also sent a discharge voucher for being signed by the complainant and further requested complainant to withdraw the consumer complaint i.e. present consumer complaint. The discharge voucher was also collected by the complainant from the office of the Registrar of this Commission on 04/02/2000. It appears that thereafter on 25/02/2000 complainant raised the issue of payment of interest @ 24% p.a. on account of delayed payment. In the background of the above referred facts which are not in dispute, we find that the Insurance Company was within their own rights to make proper investigation and await surveyor’s report. Insurance Company acted very promptly on receipt of report of the surveyor and acting upon the settlement of the claim as recommended by the surveyor, which was accepted by the complainant, informed the complainant accordingly and also issued the discharge voucher to enable them to disburse the amount of the settled claim. Amount was actually disbursed to the complainant as recorded in the order sheet dated 17/05/2001, supra. Therefore, we find that the complainant miserably failed to make out any case to claim penal interest @ `50,000/-. He claimed costs of this complaint `10,000/- which we will deal with while passing final order because as far as claim of `50,000/- which remains pending after making the payment on 17/05/2001, we find the complainant miserably failed to establish his such claim and, therefore, he is not entitled for the same. Hence we pass the following order:- ORDER Consumer complaint stands dismissed, as far as claim of `50,000/- towards penal interest is concerned. Other claims already stood settled as recorded in the order sheet/order dated 17/05/2001. In view of the circumstances of this case, complainant and opponent no.2-Bank of Baroda to bear their own costs, while opponent no.1- M/s.Oriental Insurance Co. Ltd. to bear its own costs and pay `10,000/- as costs to the complainant. Complaint stands disposed of accordingly. Pronounced on 6th May, 2013. |
