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CC No.312 of 2018 Page 7 of 13

12. As regards the contention that the OP/surveyor arbitrarily applied 25% deduction in the cost of transformers, it is a matter of record that the surveyor had invoked a flat reduction of 25% in the value of transformers on the premise that the affected transformers were semi- finished or under repair, which were lying in the open yard at the time of the fire. Further, these were capable of partial reuse. The surveyor further segregated the transformer components such as core, winding, oil and casing, and applied deductions on account of depreciation and salvage recoverability. The reduction was stated to represent reusability of certain components and the alleged absence of a total or constructive loss of the transformers. The same is, therefore, justified.