Case: New India Assurance Co.Ltd Vs. Parakh Foods Ltd

Since the facts and the issues involved in the two appeals are similar, we propose to dispose of both the appeals by this common judgment and orderThe appeals are filed against the judgment and order passed by the National Consumer Disputes Redressal Commission, New Delhi (for short, `the National Commission) in Original Petition No. 146 of 2003, whereby the National Commission came to a definite conclusion that the loss suffered by the respondent (M/s. Cargil India Pvt. Ltd.) had occurred on account of fire causing damage to the soya bean stock and, therefore, as per terms of the policy, the respondent is entitled to receive Rs. 1,70,72,876/which is the amount of loss assessed by the surveyor by report dated 29.10.2002 along with the interest @ 9% per annum from 1.1.2003 till the date of payment. The National Commission also directed for payment of cost of Rs.. Being aggrieved by the aforesaid judgment and order, the appellant has filed this appeal whereas the respondent has filed the appeal seeking enhancement of the compensation awarded by the National Commission.

Court's reasoning:
Our attention was also drawn to the policy, which is the subject matter of the claim in the present case. There is an exclusion clause in the said policy which provides that the aforesaid insurance policy would not cover loss or damage to property caused by its own fermentation, natural heating or spontaneous combustion or by its undergoing any heating or drying process. However, the respondent herein paid an extra premium of Rs. 25,000/due to which the exclusion clause was relaxed. In other words, because of the payment of the aforesaid extra premium, the exclusion clause as stated hereinbefore also became a part of the contract between the parties and, therefore, the said exclusion clause would not be treated as excluded terms of contract but would be treated as an inclusive clause of the contract between the partiesAt the instance of the counsel appearing for the parties, we have also gone through the findings recorded by the National Commission. The National Commission on appreciation of the entire records has come to a definite finding that there was loss to the respondent on account of fire causing damage to the soya bean stock and, therefore, in terms of the stipulation in the contract, the respondent is entitled to the compensation, which was awarded by the National Commission. We have considered the evidence on record and we have no reason to take a different view than what is taken by the National CommissionEven when we examine the submission of the counsel of the appellant to the effect that there was no fire at the time when the soya bean stock was damaged, even then in terms of the Full Bench decision of the National Commission, the appellant would be liable to pay the loss or damage in terms of the endorsement thereof whereby it was provided that the policy would extend to include loss or damage even to the property insured, caused by spontaneous combustion