Electrical Motors' fault detection and diagnosis in industrial setups, is determined by a myriad of factors which includes various techniques and tools. As the experience shows more sophisticated tools and techniques are being developed but the ease of diagnosis is also getting sacrificed in the process. The main drawback prevailing is that tools and techniques developed so for needs expert knowledge and support to draw conclusive opinion. It is against this background that a dire need was felt to design and develop basically a very user friendly technique and tool in the domain of electrical motors' fault detection and diagnosis. The technique and tool so developed should have ease of use and inferences based on the simple data generated from application of the technique and the tool. Hence, to realize the objective it has been endeavored hard to develop the novel technique. The technique so developed has been given the name 'Observer Coil technique' that aptly bridges the observed gap also. It fulfills the thrust area in industry as well as academia to suggest the universal fault detection and diagnostic technique which removes the shortcoming experienced earlier.