Authority: Supreme Court of India (Civil Appellate Jurisdiction)

Order Date: 18 June 2026

Case Overview

  • Parties: Akal Electricals Pvt. Ltd. (appellant) vs National Insurance Co. Ltd. and another respondent.
  • Incident: Fire on 7 August 2008 at Akal Electricals' factory in Doraha, Ludhiana, causing extensive damage to working hall shed, finished stock, semi‑finished stock, raw materials, transformers, core‑coil assembly, HT/LT coils, etc.
  • Insurance coverage: Three Standard Fire and Special Perils policies with sums insured of Rs 2,50,00,000, Rs 6,00,00,000 and Rs 40,00,000.
  • Surveyor: Cunningham Lindsey International Pvt. Ltd. appointed by the insurer; final survey report submitted on 23 July 2009.
  • Claim settlement: Insurer disallowed ~75% of the claim and paid Rs 2,79,22,550 (later referenced as Rs 2,79,82,286) as full and final settlement, accepted by the appellant on 18 November 2009.
  • Consumer complaint: Filed on 4 August 2010 before the National Consumer Disputes Redressal Commission seeking an additional Rs 3,12,18,652.
  • Commission outcome: Dismissed the complaint on the ground that the appellant had already accepted the settlement without protest.
  • Appeal: Akal Electricals appealed the Commission’s judgment (Civil Appeal No. 5063 of 2015).
  • Key issues before the Supreme Court: (a) Delay of approximately 11 months in furnishing the survey report after the fire; (b) Delay in disbursing the settled amount, which was paid only on 9 April 2010.

Final Outcome

  • The Supreme Court partially allowed the appeal.
  • It directed that the settled amount shall attract simple interest at 10% per annum for the period from 23 July 2009 to 9 April 2010.
  • The interest‑bearing amount must be paid within eight weeks from the date of the order; failure to do so will raise the interest rate to 15% per annum.
  • All pending interlocutory applications, if any, were disposed of.

Topics: Insurance Claim, Judicial Interest Award