SHOE LAND Vs. NEW INDIA INSURANCE COMPANY LTD AND ORS

JUDGEMENT

(1.) COMPLAINANT has approached this Commission by filing the present complaint, under Section 17 of the Consumer Protection Act, 1986, to seek issuance of a direction to opposite party No.1 to pay insurance money, on account of damage caused to the insured stock of shoes in its shop, situate in Sarvari Bazar, Kullu, Tehsil & District Kullu.

(2.) CASE of the complainant, as disclosed in the complaint, is like this. Complainant had been doing business in shoes at Sarvari Bazar, Kullu in a rented shop, which belonged to one Mr. Awasthi. He had a cash credit limit upto Rs. 25.00 lacs with State Bank of India, impleaded as opposite party No.2. As security for the repayment of the money drawn against the cash credit limit, complainant had pledged its stock of shoes with the said bank. The stock -in -trade, i.e. the shoes, was insured with opposite party No.1, i.e. New India Insurance Company, in the sum of Rs. 35.00 lacs, vide policy dated 18.06.2010, which was effective for a period of one year. On 02.05.2011, around 11.25 p.m. a fire broke out in the back portion of the shop. Fire tenderers were pressed into service. Fire was controlled within one hour. According to the complainant, entire stock of shoes, worth Rs. 35.00 lacs, was damaged due to fire incident. He apprised the insurer, i.e. opposite party No.1, of the fire incident. A preliminary surveyor was deputed, who reported that stock worth Rs. 1,12,819/ - had escaped damage. However, he did not report with regard to the quantity or a monetary value of the damaged stock.

(3.) OPPOSITE party No.1 deputed another surveyor, who, vide his report, Annexure R -4, assessed the loss at Rs. 6,55,850/ -. Opposite party No.1 did not pay anything to the complainant and repudiated the claim, vide Annexure R -11, on the ground that most of the bills/invoices, against which the shoes allegedly damaged in the fire were purchased, had been found to be bogus and fake and that as a matter of fact, the business concerns/firms/companies, by whom said bills were issued, were non -existent.