Supreme Court
Messrs Shobika Attire Vs New India Assurance Company Limited And Another
CASE NO:
Appeal (Civil) 2066 of 2006
LEGISLATIONS:
Section 23 of the Consumer Protection Act, 1986
Date of Judgment: 15 Sep 2006
Messrs Shobika Attire
Vs
New India Assurance Company Limited And Another
JUDGE:
ALTAMAS KABIR
Date of Judgment: 15 Sep 2006
BENCH:
DR. AR. LAKSHMANAN AND ALTAMAS KABIR
CASE NO:
Appeal (Civil) 2066 of 2006
LEGISLATIONS:
Section 23 of the Consumer Protection Act, 1986
Summary:
In our view, the appellants had discharged the initial burden regarding destruction, damage of the showroom and the stocks therein by fire and riot in support of the claim under the insurance policy and it was for the insurance company to disprove such claim with evidence, if any. In our view, the insurance company, despite the report of the investigator, failed to establish that the claim of the appellants was not justified and was not covered by the policy of insurance. Inasmuch as, the insurance company was within its rights to cause an inquiry into the incident and it approved the appellants' claim of Rs.1, 02, 38, 738/- based on the report of the investigator, we are unable to agree with the submission made on behalf of the appellants that apart from the actual claim, the appellants are also entitled to payment of compensation towards hardship, mental agony and harassment. We, therefore, allow the appeal and direct the respondent-insurance company to pay to the appellants the balance amount of Rs.97, 83, 827/- together with interest at the rate of 9% per annum from the date of the claim till payment. Such payment is to be made within a month from date. There will be no order as to costs.
