July 27: The Supreme Court has upheld the insurance claim made by Everest Paper Mills. Issuing a final verdict in favour of the mill, the apex court has ordered United Insurance Company to pay the insurance claim to the mill after a lengthy legal battle. In addition to that, the insurance company has also been instructed to pay the interest for the liable amount.
A division bench of justices Bisnwambhar Prasad Shrestha and Hari Prasad Phuyal issued the verdict last Wednesday (July 22). The paper mill had claimed insurance worth Rs 15 million for damages while filing the complaint.
However, United Insurance has said it will take further legal steps after getting the full text of the verdict. Stating that the Supreme Court’s verdict has victimized them, a high ranking official of the insurance company said they will take further legal steps in this regard.
“We haven’t received the full text of Supreme Court verdict. We ill take further legal steps after consulting with our layers upon receiving the full text,” said the official requesting anonymity.
He argued that the Supreme Court’s verdict in favour of the petitioner has been unjust for them when the surveyor has presented a report that warrants ‘no claim’.
During the insurgency era, the then Maoists rebels had detonated a pressure cooker bomb at Everest Paper Mills after the company declined to provide donation to the insurgents. The blast had damaged the machinery and readymade papers inside the mill.
The paper mill had purchased two separate insurance policies from the insurance company for the machinery plant and the readymade products.
The insurance company argues that the insurance policy covers damage to readymade products stored in the warehouse but the paper mill has been claiming compensation for products damaged in the plant.
The paper mill and insurance company had jointly hired two surveyors to prepare a report. The surveyors concluded that it was the company’s flaw to keep the readymade products inside the plant and therefore the insurance company did not need to pay for the damages.
As per the recommendation made by the report, the insurance company had paid Rs 45 million to the mill for the damages sustained by the plant.