Birla Vxl Ltd. And Anr. vs NATIONAL INSURANCE CO. LTD.

FOR passing this order only few facts need be noticed. Complainant Company were insured with the opposite party - Insurance Co. under various policies and on claims arising out of the cyclone which caused damage to different salt works at Villages Parodia, Gagwa, Vadinar, Bedibunder, Birla Salt and Chemicals at Village Khijadia, to Soda Ash Plant and Power House at Porbandar and for loss of profit arising as a result of closure of Soda Ash Plant and Power House at Porbandar the complainants in the complaint prayed for issue of direction to the Insurance Co. to pay amount of Rs. 2,35,04,536 towards compensation for the damage/loss caused as also interest of Rs. 2,12,78,023 and future interest @ 18% p.a. Complaint was contested by filing written version by the opposite party -Insurance Company. During the pendency of complaint, the complainants filed an application dated 6.12.1996. Opposite party also filed the application dated 5.12.1996. In the application filed by the complainants, it was alleged that the Insurance Co. had come out with a proposal to settle the claim and offered Rs. 2,30,47,958 instead of Rs. 2,35,04,536 as claimed by the complainants. The complainants have expressed their willingness to accept this amount as part satisfaction of their claim. Complainants, therefore, abundon their claim to the tune of Rs. 2,30,47,958 which has been paid by the Insurance Co. by means of cheques bearing Nos. 260296 to 260299 dated 15.10.1996. Prayer made in the said application filed by the Insurance Co. was to record compromise/settlement in view of the total amount of Rs. 2,30,47,958 having been paid to the complainants against discharge vouchers. Controversy between the parties, thus, centers around the question if the above payment was received towards full and final settlement of the claims made or as only as part payment. Letter dated 11.10.1996 (copy at page 197) sent by the complainants to the Insurance Co. as also the discharge vouchers (copy at pages 193 to 196) have great bearing on the issue on hand. After acknowledging the Insurance Co.''s letters dated 20.9.1996 and 7.10.1996 along with four discharge vouchers, the letter dated 11.10.1996 reads thus: "We now enclose herewith the relevant vouchers duly accepted by us as well as by our bankers too wherever applicable in respect of above claims.

We now request you to please make us available the details and the reasons on the basis of which our claims have been passed for the short amount. For your reference, we now again enclose herewith a full set of reinstatement -statements in respect of earthwork, etc. at our Salt Works etc. We request you to kindly release the differential amount of Rs. 4,56,578 in due course of time after going through these details.

Please note that earlier M/s. Saurashtra Chemicals was a proprietary concern of Jiyajeerao Cotton Mills Ltd., Gwalior. The same was merged with M/s. VXL India Limited w.e.f. 28.3.1990. Thereafter, from 5.4.1995 M/s. VXL India Limited renamed as Birla VXL Limited. The relevant certificates of change of names are enclosed herewith. Since, the receipt of vouchers have been discharged by the bankers, we now request you to issue all the above cheques favouring UCO Bank A/c Birla VXL Limited -Saurashtra Chemicals on receipt of above letter.

Similarly, M/s. Salt & Allied Industries Limited, Jamnagar, which is a subsidiary company of M/s. Birla VXL Limited, has been renamed as Birla Salt & Chemicals Ltd., Jamnagar. Accordingly, we would request you to issue the cheque for Rs. 3,29,638 in favour of State Bank of India A/c M/s. Birla Salt & Chemicals Limited, Jamnagar. The relevant letter in respect of change of name is enclosed herewith. We hereby confirm that the relevant cases filed by us in respect of above payments shall be withdrawn by us, as soon as the payment is received by us, after opening of the Court at Delhi. We now request you to kindly immediately release the payment.

Thanking you and assuring you of our best co -operation at all the times."

IN aforesaid four discharge vouchers the amount mentioned therein was shown to have been received towards full discharge of the claims under the relevant policies. Having heard Mr. M.N. Krishnamani, Sr. Advocate for the complainants and Mr. Vishnu Mehra, Advocate for the Insurance Company and also having considered the contents of the said letter and discharge vouchers, we are of the view that the payment of Rs. 2,30,47,958 was made to the complainants towards full and final settlement of their claims.

WITH this payment, the complaint deserves to be dismissed as satisfied. Dismissed as such. No order as to cost. Complaint dismissed.