Strictly speaking, the event that caused the loss or damage to the insured
occurred on 6th August, 1992 when due to heavy incessant rain in Calcutta, the
raw materials, stocks and goods, furniture etc. of the insured were damaged. On
the very next day, the insured lodged a claim with National Insurance. In
response, National Insurance first appointed N.T. Kothari & Co. to assess the
loss suffered by the insured and a report was given by this surveyor after more
than one year. Thereafter, for reasons that are not at all clear, National Insurance
appointed a second surveyor which also took about one year to submit its report
and eventually gave an addendum to that report thereby crossing one year in
completion of its report along with the addendum. In other words, National
Insurance itself took more than two years in surveying or causing a survey of
the loss or damage suffered by the insured. Surely, this entire delay is
attributable to National Insurance and cannot prejudice the claim of the insured,
more particularly when the insured had lodged a claim well within time. To
make matters worse, National Insurance actually repudiated the claim of the
insured only on 22nd May, 2001 which is well after the complaint was filed with
the National Commission.
18. In our opinion, in a dispute concerning a consumer, it is necessary for the
courts to take a pragmatic view of the rights of the consumer principally since it
is the consumer who is placed at a disadvantage vis-à-vis the supplier of
services or goods. It is to overcome this disadvantage that a beneficent
legislation in the form of the Consumer Protection Act, 1986 was enacted by
Parliament. The provision of limitation in the Act cannot be strictly construed to
disadvantage a consumer in a case where a supplier of goods or services itself is
instrumental in causing a delay in the settlement of the consumer’s claim. That
being so, we have no hesitation in coming to the conclusion that the National
Commission was quite right in rejecting the contention of National Insurance in
this regard.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 3883 OF 2007
NATIONAL INSURANCE CO. LTD.
VS.
HINDUSTAN SAFETY GLASS WORKS LTD.
Dated:April 7, 2017.
Citation: AIR 2017 SC 1900
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