NATIONAL INSURANCE COMPANY LTD. versus M/S. HARESHWAR ENTERPRISES (P) LTD. & ORS.

NATIONAL INSURANCE COMPANY LTD. versus M/S. HARESHWAR ENTERPRISES (P) LTD. & ORS.

The Supreme Court held the complaint was within limitation because the cause of action did not remain static after the fire: appointment of an investigator and the insurer's delay created a fresh cause or continuation of the cause of action; the NCDRC was justified in relying on the joint surveyors' detailed report rather than a belated investigator's report given the manner and timing of the insurer's conduct; the NCDRC's award is upheld but modified to reduce interest from 12% to 9% per annum; appeal allowed in part.

Parties
Appellant / Insurer: National Insurance Company Ltd.; Respondent No.1 / Insured: M/s. Hareshwar Enterprises (P) Ltd.; Respondent No.2 / Secured Creditor (chargee): Maharashtra State Financial Corporation; Respondent No.3 / Hypothecatee: Thane Jan Sahakari Bank Limited
Jurisdiction
India
Judgment Date
18 August 2021
Procedural Posture
Civil Appeal / Judgment on Appeal to the Supreme Court (civil Appeal No.7033 of 2009)
Outcome
Appeal partly allowed
Legal Topics
Cause of Action, Surveyors' Report, Investigation Report, Assessment of Stock Loss, Interest on Delayed Payment
Consumer Protection Act, 1986 Insurance Law Limitation Cause of Action Surveyors' Report Investigation Report Assessment of Stock Loss Interest on Delayed Payment

Case Brief

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Parties

National Insurance Company Ltd.

Appellant / Insurer

M/s. Hareshwar Enterprises (P) Ltd.

Respondent No.1 / Insured

Maharashtra State Financial Corporation

Respondent No.2 / Secured Creditor (chargee)

Thane Jan Sahakari Bank Limited

Respondent No.3 / Hypothecatee

Procedural Posture

Civil Appeal / Judgment on Appeal to the Supreme Court (civil Appeal No.7033 of 2009)

Legal Issues

  1. 1 Whether the complaint before the NCDRC was barred by limitation under Section 24A of the Consumer Protection Act, 1986
  2. 2 Whether the NCDRC was justified in relying on the joint surveyors' report rather than the insurer's investigator report
  3. 3 Whether the assessment of stock-in-trade loss in the surveyor's report was reliable

Ratio Decidendi

The Supreme Court held the complaint was within limitation because the cause of action did not remain static after the fire: appointment of an investigator and the insurer's delay created a fresh cause or continuation of the cause of action; the NCDRC was justified in relying on the joint surveyors' detailed report rather than a belated investigator's report given the manner and timing of the insurer's conduct; the NCDRC's award is upheld but modified to reduce interest from 12% to 9% per annum; appeal allowed in part.

Court Disposition

Appeal partly allowed

Orders

  • The NCDRC order dated 27.03.2009 allowing the complaint in part is upheld subject to modification of interest.
  • The insurer shall pay Rs.79,34,703/- (total award) with interest at 9% per annum instead of 12% per annum.