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TMI Blog1999 (1) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... re, fixtures, electrical fittings, stocks, etc., in the said premises with the New India Assurance Co. Ltd., Labbipet Branch, Guntur ( i.e., opposite party) for a sum of Rs. 2,50,000 for the period commencing from 24-4-1995 to 23-4-1996 after paying the required premium amount and the opposite party issued a fire policy - A and the particulars of the stocks covered under the policy were mentioned in the schedule attached to the policy. As the complainant was also carrying on liquor business in the name and style of Bhavani Bar and Restaurant situated in Hostel Sarovar, opposite to R.T.C. Bus Stand, Guntur as a proprietary concern. He insured all the furniture, fixtures, electrical fittings, etc., of that business with the opposite party for a sum of Rs. 6 lakhs for the period commencing from 17-3-1995 to 16-3-1996 after paying the required premium and obtained a Fire Policy-A with Cover Note No. R-3941 and the stocks covered under the said policy were mentioned in detail in the schedule attached to the said policy. As the Government of Andhra Pradesh introduced total prohibition, the complainant stopped doing business in both the premises and shifted the furniture, fixtures, stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 426 of 1995 and O.P. No. 427/1995 admitting issuance of two insurance policies in question but contending that Shri K. Siva Prasad, the Surveyor appointed by it inspected the premises on the date of accident itself and enquired into the matter and submitted a preliminary report dated 15-6-1995, that thereafter the Surveyor submitted a final report dated 11-12-1995, that the enquiry made by the Surveyor reveals that the complainant informed the Surveyor that he was not at his house at the time of accident having gone to the Railway Station to give send off to somebody, whereas the complainant categorically stated in the report (F.I.R.) given to the police about the accident that he was at his house at about 4.00. a.m. on the date of the accident when the son of the owner of the shop premises and one Yedukondalu, a watchman of the neighbouring hospital came to his house to inform about the accident, that this prevaricate statement of the complainant about his presence at his house at the time of accident created suspicion in regard to the cause of the accident, that according to the Surveyor "the scene of fire appears that the entire shop was at once engulfed in fire" which is unusua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compensation of Rs. 3,000 for mental agony and expenses in O.P. No. 427/1995. 5. Aggrieved by this order the opposite party i.e., The New India Assurance Co. Ltd., Guntur Branch preferred these two appeals. 6. The point for consideration is whether there is deficiency in service on the part of the opposite party and whether the opposite party is liable to pay any compensation and if so to what amount ? 7. The learned counsel for the appellant submits that the District Forum grossly erred in directing the opposite party to pay compensation despite the categorical reports of the Surveyor and the Investigator stating that the investigation made by them disclosed that the cause of accident was not short-circuit of electricity and the complainant made bogus claims and that in view of the settled legal position of the District Forum should have referred the parties to a Civil Court. The learned counsel for the appellant relied on a decision in Parals Offset (P.) Ltd. v. United India Insurance Co. Ltd. [1995] CPJ 9 (NC), wherein it was held as follows : "We find that the Insurance Company has carefully applied its mind to various relevant aspects and had, thereafter, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... joint surveys conducted and had finally come to the conclusion to repudiate the claim, under the said two policies. The complainant is not satisfied with this letter of repudiation and the complainant may have its own reason. Having regard to the facts and circumstances of the case and the nature of controversy between the parties, we consider that this is a matter that should be adjudicated before Civil Court where the complainant as well as the opposite party would have sufficient opportunity to examine witnesses at length and produce oral and documentary evidence from the official records of the West Bengal Government which are claimed to be in existence for ascertaining of the cause of loss and quantum of loss. Without prejudice to the right of the complainant, the complaint is dismissed leaving the parties to bear their own costs." 8. The learned counsel points out that when the surveyor, K. Siva Prasad appointed by the opposite party inspected the accident premises on the same day and made enquiry, that during that enquiry the complainant told the Surveyor that he was not at his house when the son of the owner of the shop premises and one Yedukondalu, a watchman of the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm about the accident since he had gone to the railway station to give send off to somebody. It may also be noted that in his proof affidavit filed at the time of enquiry before the District Forum the complainant has not denied having stated to the Surveyor that he was not at his house at the relevant time though the Surveyor categorically reported that the complainant told him that he was not at his house when the son of the owner of the shop premises and one Yedukondalu came to his house to inform about the accident. The complainant has not made any attempt either to examine the son of the owner of the shop premises and the said Yedukondalu nor did he file the proof affidavits of those two persons to testify that he was present at his house when these two persons went to him at about 4.30 a.m. on the date of accident to inform about the accident. Therefore, the conclusion reached by the opposite party that the complainant was giving prevaricate statement in regard to his presence or absence at his house at or around the time of the fire accident and that therefore, the cause of accident as reported by the complainant was not short-circuit of electricity and the complainant was ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s arbitrary, capricious and without any justification and the District Forum is right in accepting the case of the complainant. We are not inclined to agree with this contention. In the decisions referred to above the National Commission held that in cases where the Surveyors/Investigators appointed by the insurance company made thorough investigation and came to the conclusion that the claim of the complainant was false and where the insurance company carefully applied its mind to various aspects and arrived at the conclusion that the claim put forward by the insured was not tenable and the insurer was not liable for reimbursing the alleged loss sustained by the insured, there is no deficiency of service on the part of the opposite party and the complainant will have to pursue his remedy by way of civil suit, when he is not satisfied with the letter of repudiation. Keeping in view the above decisions of the National Commission and having regard to the facts and circumstances of the case and the nature of controversy between the parties, we are of the opinion that the opposite party applied its mind to various relevant aspects of the case and made a repudiation and that there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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