GENERAL COMMERCE LIMITED Vs. NATIONAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) This is a suit for recovery of Rs. 6,24,830/- filed by the Managing Director of the plaintiff Company duly incorporated and registered under the Companies Act, 1956. The plaintiff carries on the business of manufacture and export of ready made garments. The Defendant no. 1 is an insurance Company which is engaged purely in the business of issuing various kinds of insurance policies and covers. The Defendant no. 2 is the Bombay Port Trust. The goods imported at the Bombay Port and otherwise are stored with the Bombay Port Trust before custom clearance. The Defendant no. 3 is a clearing agent for various kinds of goods imported and exported to and from India.

(2.) Certain negotiations took place between the plaintiff and M/S South East Piece Goods Co. Ltd having its office at 154-156, Yu Chau St. Shamshuipo, Kowloon, Hongkong in respect of the proposed import of fabric by the plaintiff. In pursuance to the agreement arrived at, an invoice was placed by the Hongkong party dated 10.3.1990 for import of 36,739.75 yards of the said fabric of about 65% rayon and 35% cotton of a total value of approx US $ 41,515.93 equivalent of which is Indian currency is Rs. 7,23,589.00 . Arrangements were made for shipment of the said goods comprising of 80 cartons by sea freight from Hongkong to Noida via Bombay Port. The goods were to be shipped in and around 9.3.1990.

(3.) The plaintiff approached the defendant no. 1 for issuing marine, cargo/Inland transit insurance policy covering the said shipment. In pursuant to the request of the plaintiff, defendant no. 1 issued two insurance policies as detailed in para 7 of the plaint. Initially two cover notes were issued on 13.2.1990 bearing No. 309820 and 309821 and subsequently the policies were issued on 11.4.90 in lieu of the cover notes. The payments for the total premium was made by the plaintiff vide cheque no. 267443 dated 12.2.90 for Rs. 12,395.00 drawn on Indian Overseas Bank, Parliament Street, New Delhi which was tendered to the defendant no. 1 on 12.2.90 itself.