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PETITIONER: M/S CHENGALRAYAN CO-OPERATIVE SUGAR MILLS

       Vs.

RESPONDENT: ORIENTAL INSURANCE CO.  LTD.  & ANR.

DATE OF JUDGMENT:       30/09/1999

BENCH: D.P.Wadhwa, S.S.Ahmad

JUDGMENT:

D E R      The  main contention raised by learned counsel for the appellant  is  that  the National Commission ought  to  have allowed the claim on the basis of the report of the Surveyor who  had  recommended payment of Rs.41,13,127.87/-  for  the value of the gunny bags destroyed in the fire.  The National Commission before which this question was raised, considered the  evidence  on record and ultimately recorded  a  finding that the appellant itself by its letter dated 19.12.1989 had invited  quotation  from various insurance companies  for  a Fire  Policy  setting out the details as under :  "1.   Fire Policy  Stock  of Sugar 400 Lakhs Stock of gunnies 12  Lakhs Stock  of  sulphur & 6 Lakhs chemicals Stock of  stores  and spares  35 Lakhs ----------- Total value of Fire Policy  453 Lakhs  ----------- The entire stock lying in the premises of the  appellant was destroyed by a major fire accident  which took  place  on 15.11.1990 and although the Policy  had  not till  then been issued by the respondents, the claim  raised by  the appellant was not repudiated and the Policy was also issued in December, 1990.  The appellant and the respondents mutually  settled  the  claim  so far as  other  items  were concerned  but  they  did  not   agree  on  the  quantum  of compensation  for the stock of gunny bags and  consequently, the  appellant approached the National Commission which held that  though  there  was  no   deficiency  of  service,  the respondents  were  liable  to   pay  Rs.11,69,994/-  to  the appellant  as  they themselves had made that offer by  their letter  dated  24.4.1992.   The   National  Commission  also allowed interest at the rate of 18 per cent from the date of its  order  provided  the  amount was not  paid  within  two months.   Having  regard to the facts and  circumstances  of this  case, we are not prepared to accept the contention  of the  appellant’s  counsel  that the claim should  have  been allowed  in  terms  of  the surveyor’s report.   It  is  not disputed  that  the  appellant itself by  its  letter  dated 19.12.1989  had invited quotations for a Fire Policy and  in that letter of invitation, it had mentioned the value of the Policy  in  which they had indicated the value of the  gunny bags  as  Rs.12  lakhs.  In this  background,  the  National Commission  was justified in not placing any reliance on the surveyor’s  report.   We  fully  endorse  the  view  of  the National  Commission and reject the contention raised by the appellant’s  counsel  that  the  claim ought  to  have  been allowed  in  terms of the surveyor’s report.   We,  however, feel  that the interest ought to have been awarded from  the date  on  which  the  claim was filed  before  the  National Commission.   Consequently,  while maintaining the order  of the National Commission for payment of Rs.11,69,994/- to the

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appellant  as  value of Gunny Bags, direct that this  amount shall  be  paid within two months from today and  that  too, with  interest at the rate of 18 per cent per annum from the date  of filing of the claim before the National  Commission till  the date of actual payment.  The appeal is disposed of in the manner indicated above without any order as to costs.