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State Consumer Disputes Redressal Commission

The New India Assurance Co. Ltd., vs The Sama Service Co-Operative Society, on 29 March, 2022

  	 Cause Title/Judgement-Entry 	    	       IN THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION  ODISHA, CUTTACK             First Appeal No. CDA/825/2004  ( Date of Filing : 19 Oct 2004 )  (Arisen out of Order Dated 30/01/2004 in Case No. CD/165/2001 of District Ganjam)             1. The New India Assurance Co. Ltd.,   Having its registered Head Office at- 87, Mahatma Gandhi Road, Mumbai, represented by its Branch Manager.  2. The New India Assurance Company Ltd.,   Utkal Automobiles Building, Tata Bez Square Berhampur, Dist- Ganjam. ...........Appellant(s)   Versus      1. The Sama Service Co-operative Society,   Ganjam represented by its Secretary, Bansidhar Pradhan, S/o- Late Narsingh Pradhan, At/Po- Sama, Dist- Ganjam. ...........Respondent(s)       	    BEFORE:      HON'BLE MR. JUSTICE Dr. D.P. Choudhury PRESIDENT    HON'BLE MR. Pramode Kumar Prusty. MEMBER    HON'BLE MS. Sudihralaxmi Pattnaik MEMBER            PRESENT: Mr. P.K. Panda, Advocate  for the Appellant 1     M/s. U. mohapatra & Assoc., Advocate  for the Respondent 1    Dated : 29 Mar 2022    	     Final Order / Judgement    
                   

                  Heard the learned counsel for   the appellant.

2.              This appeal is  filed  U/S-15 of erstwhile  Consumer Protection Act,1986(herein-after called the Act). Parties to this appeal shall be referred to  with reference to their respective status before the learned District Forum.

3.                      The case of the  complainant, in nutshell  is that the complainant had purchased policy  for  the stock of fertilizer, cloth and grocery for sum assured of Rs.1,00,000/- for the period from 23.12.1998 to 22.12.1999. It is alleged inter-alia that on 17.10.1999 the building and stock of the society  were damaged by super cyclone   for which the complainant informed to the Op and Aska Co-operative  Central Bank Ltd.. The Aska Co-operative Central Bank assessed the loss at Rs.1,69,000/-. On the otherhand  the OP did not settle the matter for which the complainant filed the complaint showing deficiency in service on the part of the OP.

4.            The OP  filed written version stating that the OP  after receiving the complaint from the complainant assessed the loss by their surveyor but there is no  cause of action to get any compensation and the complaint is not maintainable.

     5.        After hearing  both the parties, learned District Forum  passed the following order:-

                  Xxxxx              xxxxxxxx              xxxxxx                    " In view of the above, we hold that the OP is deficient in service and is liable to pay the claim amount to the complainant society. We therefore direct the opposite party to pay a sum of Rs.1,30,000/-(Rounded amount) to the complainant society towards the claim. The amount shall have to be credited to the account of the complainant society within a month of receiving the copy of this order. In the circumstances of the case, we however, do not allow any interest or cost."

6.                Learned counsel for the appellant submitted that learned District Forum has committed error in law by not considering the written version with proper perspectives. According to him the Aska Co-operative Central Bank Ltd. Is not  entitled to assess the loss so that the insurance company should accept same. On the otherhand the surveyor has computed loss of Rs.54,826/-. Learned District Forum ought to have considered such amount as compensation. Further, he submitted that  they have rendered their best service to compute the loss but learned District Forum,without asking for any sort of loss computed by the Op relied upon the Aska Cooperative Central Bank who  is not a party to this case. Therefore, he submitted to allow the appeal by setting aside the impugned order.

7.            Considered the submission of learned counsel for the appellant, perused the DFR and impugned order.

 8.           The complainant is required to prove the deficiency in service on the part of the OP. It is admitted fact that the complainant had purchased the policy for the  stock of fertilizers  and grocery of his shop for the period from 23.12.1998  to  22.12.1999. It is not in dispute that on 17.10.1999  the  building of the  society  were damaged by super cyclone and the stock of fertilizers and grocery were damaged. It is admitted by the learned counsel for the appellant that during appeal they have already computed the loss.  He drew attention of this Commission to the loss computed by their surveyor. He also drew attention to the loss computed by Aska Cooperative Central Bank. Since Aska Cooperative Central Bank is not a party to this  case and the appropriate authority is  OP to compute the loss, we are inclined to consider the report of the surveyor deputed by the OP. Learned District Forum has not considered the surveyor's report at all. It is well settled in law that surveyor's report  should be the basis for computation of loss. We have gone through the report and found that the surveyor has deducted the salvage amount from the fertilizer which is not correct. Moreover, the surveyor has taken 50 % depreciation. Therefore,  50 %  should be  reduced to 35 %. Therefore, overall, in our opinion Rs.75,000/- loss  should computed by the surveyor, as such should be payable by the OP to the complainant.

 9.           In view of aforesaid discussion,   while affirming to the finding of the learned District Forum for  deficiency in service  for not computing loss, we hereby modified the impugned order by directing the OP to pay Rs.75,000/-  to the complainant within 45 days from the date of receipt of this order, failing which  it will carry interest @  12 %  per annum from the date of impugned order till date of payment.

              The appeal is disposed of accordingly. No cost.

             Free copy of the order be supplied to the respective parties or they may download same from the confonet  or webtsite of this  Commission to treat same as copy of order received from this Commission.   

             DFR be sent back forthwith.               [HON'BLE MR. JUSTICE Dr. D.P. Choudhury] PRESIDENT     [HON'BLE MR. Pramode Kumar Prusty.] MEMBER     [HON'BLE MS. Sudihralaxmi Pattnaik] MEMBER