United India Insurance Company Ltd vs Kantika Colour Lab & Ors

2. Respondent No.1-Kantika Colour Lab imported one set of Noritsu QSS-1923 printer process and QSF-V50 film processor from Japan. The machines arrived at Mumbai on 1st November, 1998 and were entrusted to M/s Super Road Lines for onward transportation to Hardwar under L/R No.005495 dated 20th November, 1998. A pre-dispatch survey conducted by the Surveyor confirmed that the machines were in sound condition at the time of dispatch from Mumbai.

3. To secure the machines against any possible damage respondent No.1-the owner of the machines obtained from the appellant Insurance Company a transit insurance policy for a sum of Rs.53 lakhs. The policy covered loss against all risks including damage/breakage, theft pilferage, road risk 3 and non-delivery etc. The insurance was extended to cover SRCC as per limits and conditions of the Marine Policy.

4. The case of the owner-respondent no.1 is that the machines suffered damage on account of mishandling in the course of transportation from Mumbai to Hardwar. A damage certificate issued by respondent no.7 acknowledged that the damage to the machines had occurred during transportation. Respondent no.1 accordingly lodged a claim for a sum of Rs.55 lakhs against the appellant company and the Carrier- respondent no.7 in this appeal. A preliminary survey of the damage to the machines was ordered by the appellant company and conducted by Shri Ajay Kumar Arora, who submitted a report stating that while Printing Machine QSS 1923 had suffered damage, there was no apparent damage to the Film Processor QSF-V50 which machine outwardly appeared to be in sound condition.

5. The appellant-company then appointed Shri Vinod Sharma licensed Surveyor to survey the machine and assess 4 the loss as required under Section 64UM of the Insurance Act 1938. Shri Sharma submitted a report dated 17th April, 1999 after the machines were inspected by Shri Amit Bose, the Technical Director and Engineer of M/s Satyam Equipment Services Ltd. In his report Shri Sharma opined that the damage/loss to the machine was repairable and assessed the same at Rs.5,76,730/-. The report categorically stated that there was no damage to the Film processor QSF-V50 which was found to be in working condition. Accepting the said report, the appellant company offered an amount of Rs.5,76,730/- to respondent no.1 towards compensation which the said respondent refused to accept. Instead respondent no.1 filed complaint No.153 of 1999 before the National Consumer Disputes Redressal Commission, New Delhi, claming an amount equivalent to the cost of the machines which according to the respondent were a total loss on account of the damage suffered by them.

7. In support of its complaint the respondent-company examined Shri Pradeep Kumar Sharma, one of its partners. The statement of Shri Taposh Dev, Senior Sales and Service Engineer was also recorded, on behalf of the manufacturing company who too was arrayed as a party respondent. Depositions of Shri Vinod Sharma, Surveyor and Shri Amit Bose, Technical Director of M/s Satyam Equipment Services Pvt. Ltd. examined on behalf of the appellant-company, were also recorded.

8. By its order dated 1st May, 2001 the National Commission allowed the claim made before it and held the appellant-company as also the Carrier to be jointly and severally liable to pay a sum of Rs.53 lakhs together with interest @ 10% p.a. for the period commencing two months after the second Surveyor's report was submitted till the actual payment of the claim is made. The Commission directed surrender of the salvage to the Insurance Company against payment of its claim within eight weeks. The complainant was also held entitled to costs of Rs.10,000/.

23. In the result Civil Appeal No.6337 of 2001 succeeds in part and to the extent that the appellant-company and the carrier M/s Super Road Lines shall be liable jointly and severally to pay the rupee equivalent of Singapore $ 62100 at the exchange rate prevalent on the date of this order besides a sum of Rs.12,74,000/- towards customs duty paid by the insured on the import of the damaged machine. The amount so determined shall earn interest @ 10% p.a. as observed above.

24. The amount awarded in favour of the insured- respondent no.1 in Civil Appeal No.6337 of 2001 shall be paid upon surrender to the appellant Insurance Company of 19 the printer process model QSS-1923 comprising the damaged Printer Process machine (1.A and 1.B) within two months from today. Civil Appeal No.6975 of 2001 filed by the insured is, however, dismissed.

25. We make it clear that if the insured has already received directly or through its bank any part of the amount awarded by the National Commission it shall refund the excess, if any received by it or paid on its behalf to the bank within a period of two months failing which the excess amount so received but not refunded shall also earn interest in favour of the insurance company @ 10% p.a. from the date the period of two months hereby granted expires.

26. Parties are left to bear their own costs.