Supreme Court - Daily Orders
M.P.S. Modern Rice Mills vs National Insurance Co. Ltd. on 21 April, 2016
Bench: Madan B. Lokur, Adarsh Kumar Goel
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 872 of 2006
M.P.S. MODERN RICE MILLS Appellant(s)
VERSUS
NATIONAL INSURANCE CO. LTD. & ANR. Respondent(s)
O R D E R
We have heard learned counsel for the parties.
2. The controversy in this appeal relates to a domestic boiler belonging to the appellant that was destroyed / exploded in a fire. The appellant lodged a claim with the respondent insurance company but that was repudiated on the ground that the insurance policy did not include a domestic boiler within its terms.
3. The appellant then moved the District Consumer Disputes Redressal Forum, Erode by lodging its claim in the form of a complaint. By an order dated 06.10.1998, the District Forum noted two points viz.: (i) Whether the opposite parties i.e. the respondent insurance company committed any deficiency in service as contended by the appellant and (ii) Whether the appellant is entitled to the reliefs as prayed for.
4. After examining the material on record, the District Forum answered the first question in affirmative and with regard to Signature Not Verified the second question, it was held that the respondent insurance Digitally signed by Meenakshi Kohli Date: 2016.04.26 09:37:58 IST Reason: company is liable to pay a total sum of Rs.3,52,900/- to the 1 appellant. It was directed that the amount of Rs. 3,47,900/- be paid to the appellant with interest at 18% per annum from the date of accident till the date of realization and a sum of Rs.5,000/- as compensation for unfair trade practice and mental agony with costs of Rs. 1,000/-.
5. Feeling aggrieved by the order passed by the District Forum, the respondent insurance company preferred an appeal before the State Consumer Disputes Redressal Commission at Chennai. The State Commission came to the conclusion that a domestic boiler was out of the purview of the insurance policy taken out by the appellant. On this basis, the State Commission set aside the order of the District Forum and dismissed the complaint filed by the appellant. The order passed by the State Commission was upheld by the National Commission. Feeling aggrieved, the appellant has filed the present appeal.
6. We have been taken through the insurance policy and the relevant clause which reads as follows:
“In consideration of the Insured named in the Schedule hereto having paid to THE NATIONAL INSURANCE COMPANY LIMITED (hereinafter called the Company) the premium mentioned in the said schedule. THE COMPANY AGREES. Subject to the conditions and Exclusions contained herein of endorsed or otherwise expressed hereon) that if after payment of the premium the property insured described in the said schedule of any part of such property be destroyed or damaged by:-
1. Fire
2. Lighting
3. Explosion / Implosion but excluding loss of or damage to boilers, (other than domestic boilers) economisers or other vessels, machinery or apparatus in which steam is generated or their contents resulting from their own explosion/implosion.2
4. Impact by any Rail/Road vehicles or animal.
5. Aircraft and other aerial and / or space devices and / or articles dropped therefrom excluding destruction or damage occasioned by pressure waves caused by such devices.
6. Riot, Strike and Malicious Damage and Terrorism damage as per clause printed thereon.
During the period of insurance named in the said Schedule or of any subsequent period in respect of which the Insured shall have paid and the Company shall have accepted the premium required for the renewal of the policy, the Company will pay to the Insured the value of the property at the time of the happening if its destruction or the amount of such damage or at its option resituate or replace such property or any part thereof.” It is quite clear from a reading of the insurance policy that it uses a double negative in paragraph 3 above and as a result of the use of the double negative, domestic boilers are in fact covered by the insurance policy and not excluded therefrom.
7. The State Commission as well as the National Commission appear to have missed the fact that the insurance policy uses a double negative and on its incorrect interpretation these Commissions came to the conclusion that domestic boilers are excluded from the purview of the insurance policy.
8. Since in our opinion the insurance policy clearly covers domestic boilers, there is no option but to set aside the order passed by the State Commission as well as the order passed by the National Commission and restore the order passed by the District Forum. We do so accordingly. The respondent insurance company is granted six weeks' time to make the payment to the appellant.
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9. The civil appeal is allowed in view of the above. No costs.
…....................J. [Madan B. Lokur] …....................J. [Adarsh Kumar Goel] NEW DELHI;
APRIL 21, 2016.
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ITEM NO.106 COURT NO.6 SECTION XVII
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeal No(s). 872/2006
M.P.S. MODERN RICE MILLS Appellant(s)
VERSUS
NATIONAL INSURANCE CO. LTD. & ANR. Respondent(s)
(With appln. (s) for permission to file additional documents and interim relief and office report) Date : 21/04/2016 This appeal was called on for hearing today. CORAM : HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE ADARSH KUMAR GOEL For Appellant(s) Mr. Jayanth Muthraj, Adv.
Mrs. Malavika, Adv.
Mr. C. K. Sasi,Adv.
For Respondent(s) Mr. Arun K. Sinha,Adv.
Mr. S.L. Gupta, Adv.
Mr. Varinder Kr. Sharma, Adv.
Mr. M.S. Mangla, Adv.
Ms. Shalu Sharma,Adv.
UPON hearing the counsel the Court made the following O R D E R We have heard learned counsel for the parties. The respondent insurance company is granted six weeks' time to make the payment to the appellant.
The civil appeal is allowed in terms of the signed order.
(Meenakshi Kohli) (Jaswinder Kaur)
Court Master Court Master
[Signed order is placed on the file]
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