Chaudhary Group Loses Rs 580 Million Insurance Claim Case
Kathmandu – The Supreme Court has ruled against Chaudhary Group (CG) in its Rs 580 million insurance claim case related to a fire at CG Electronics Pvt. Ltd. in Satungal. The verdict upholds previous decisions by the Insurance Authority and Patan High Court, marking a legal victory for the regulatory body.
The joint bench of Justices Nahkul Subedi and Mahesh Sharma Paudel confirmed the earlier rulings, dismissing CG’s appeal. The case had been under legal review since 2075 BS (2018 AD) after CG contested the Insurance Authority’s intervention in the claim process.
The fire, which broke out on Ashoj 12, 2069 BS (2012 AD, September 28), caused significant damage to CG Electronics’ warehouse. The company initially claimed Rs 580 million in insurance, but the Insurance Authority found discrepancies, alleging that the claim was inflated. Despite United Ajod Insurance already paying Rs 390 million, the authority intervened, halting further payments.
Following the Supreme Court’s ruling, CG Group must return the amount received and pay Rs 40 million to United Ajod Insurance. Additionally, the court fined surveyors Surya Prasad Joshi and Rajan Thapa Rs 3,000 for their misleading damage assessment.