Complaint Case No. CC/09/62. Case: 1. Madhav Gems, Mumbai, 2. Talsibhai Ramjibhai Monpara, Partner of Madhav Gem, Mumbai Vs Oriental Insurance Company Limited, New Delhi. Maharashtra State Consumer Disputes Redressal Commission

Case NumberComplaint Case No. CC/09/62
JudgesS. B. Mhase (President), P. N. Kashalkar (Judicial Member) & S. P. Lale (Member)
IssueConsumer Protection Act, 1986 - Section 2(1)(g)
Judgement DateFebruary 08, 2011
CourtMaharashtra State Consumer Disputes Redressal Commission

Judgment:

P. N. Kashalkar (Judicial Member)

  1. This complaint has been filed by a partnership firm M/s. Madhav Gems and its partner-Shri Talsibhai Ramjibhai Monpara alleging deficiency in service on the part of opponent-the Oriental Insurance Co. Ltd. According to the complainants, complainant No.1 is a partnership firm carrying on its business as Diamond Merchant at Opera House, Mumbai. Complainant No.2 is a partner of complainant No.1. Opponent is the Insurance Company and complainant No.1 had insured its business under the Jewellers Block Insurance Policy. The complainants pleaded that somewhere in March 1997 they had obtained a Jewellers Block Insurance Policy from opponent for insuring their business as Diamond Traders and Merchants. The policy issued by opponent was bearing No.121802/46/97/00187 and it was for the period 27/03/1997 to 26/03/1998. The sum assured was 1,50,00,000/- under Section I; under Section II the sum assured was 65,00,000/- and; under Section III the sum assured was 15,00,000/- for which the complainants had paid premium of 89,318/- to the opponent. Memorandum dated 27/03/1997 is at Exhibit-A and Policy is at Exhibit-B. Complainants pleaded that as per usual practice, complainants handed over 405.29 Carats diamonds worth 45 Lakhs on 24/11/1997 to Mr.Vikram (Vicky) Ishwar Naik, Market Dalal (Broker) for selling it to his clients. A Broker is known as 'Dalal' in local language of the jewellers. Said goods were handed over to the broker under cover of Jangad Slip dated 24/11/1997 which was duly signed by said broker in acknowledgement of having received the diamonds as mentioned above. Exhibit-C is the said Jangad Slip.

  2. The complainants pleaded that Mr.Vicky Naik was well known broker in the trade, who acted as broker for many parties. However, as complainants did not hear from Mr.Vicky Naik about sale of diamonds, they made enquiries with other traders and learnt that other traders had also entrusted diamonds worth 2,83,00,000/- to him and they too were not hearing whereabouts of the said broker. Accordingly, a joint complaint was lodged on 04/12/1997 with D.B. Crime Branch, Mumbai by all the traders through M/s.M. Kantilal & Co. Ltd. Copy of said complaint is at Exhibit-D, wherein it was mentioned that goods of M/s.M. Kantilal & Co. and complainants and other persons worth 2,83,00,000/- were involved in the said missing of Mr.Vicky Naik. M/s.M. Kantilal & Co. also addressed a letter 08/12/1997 to Mr.R.C. Sharma, Joint Commissioner of Police in respect of loss suffered by it and other traders. Exhibit-E is the copy of said letter. Complainants lodged insurance claim with the opponent by letter dated 11/12/1997 notifying them the incident. Complainants mentioned in the said claim that they had suffered a loss of 45 Lakhs since nothing was heard of from Mr.Vicky Naik. The complainants requested the Insurance Company to appoint Surveyor to assess the loss. Opponent addressed them a letter dated 30/12/1997 stating that the loss has been registered under claim No.121802/46/98/0008 and asked them to lodge their complaint with concerned Police Station with giving full details of the loss. Opponent appointed M/s.Mehta & Padamsey Pvt. Ltd. and M/s.J.B. Boda Surveyors Pvt. Ltd. jointly to survey and assess the loss. The complainants gave background of the firm and activities carried out by it as desired by the Surveyors. In addition to criminal complaint lodged by M/s.M. Kantilal & Co., they had also lodged F.I.R. on 06/01/1998 with the Police. The complainants and other traders jointly circulated a public notice offering cash prize of 2,50,000/- to any person informing them about the whereabouts of said Mr.Vicky Naik, the broker. They had submitted all the documents and co-operated with both the Surveyors. In enquiry they had told the Surveyors that broker was not traceable and valuables were not received back from the said broker. The Police had investigated the matter and the Police had obtained summery from the Magistrate that, 'complaint is true, but person concerned is not traceable'.

  3. The complainants approached officers of opponent/Insurance Company. They were told that if the broker is not traced or found for 7 years, then the complainants' claim would be definitely settled on the presumption that he had been killed causing a loss of the diamonds. The complainants therefore realized that this was an excuse put forth to delay the complainants' claim on one or other pretexts. The complainants issued a notice dated 07/05/2005 calling upon the opponent/Insurance Company to settle their claim as broker was not traceable for the last 7 years. They had also sent a letter through Advocate Manish Diwadkar to the Chief Secretary of the State of Maharashtra and also to the Commissioner of Police, but the Insurance Company failed to settle the claim despite lapse of over a decade. The complainants therefore again addressed a letter dated 28/07/2007 praying the opponent to reimburse them the loss of 45 Lakhs. Said letter is at Exhibit-CC. Even after receipt of the letter, opponent did not settle the claim within reasonable time though they were supposed to settle the claim within two months from the receipt of Survey Report. According to the complainants, claim is neither repudiated nor settled and therefore, that itself amounts to gross negligence or inadequacy in the nature of services required to be rendered by the opponent and therefore, they filed...

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