JAYA STEELS Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) THE plaintiff has filed the suit for the relief to direct the defendants to pay Rs. 1,83,70,456/= with subsequent interest from the date of plaint till are of realisation at 18% per annum and to pay the cost of the suit.

(2.) THE gist of the plaintiff's case is as follows:-The plaintiff is a registered partnership firm. The second defendant is the Branch Manager of Aruppukottai Branch of the first defendant-Insurance Company. The third defendant is the Divisional Manager of the first defendant-Insurance Company. The 4th defendant is the Regional Manger of the first defendant-Insurance Company.

(3.) THE plaintiff is engaged in acquiring old ships/vessels for the purpose of breaking and retrieving usable materials therefrom. The plaintiff has a scrapping yard for the said purpose at Valinokkam, a coastal village in Ramanad District. The plaintiff is a registered ship breaker with the canalising Agency, the Metal Scrap Trade Corporation, (MSTC) a government of India Enterprise. In the usual course of business, the plaintiff was allotted the vessel "m. V. Yak" by MSTC, which was acquired by it from M/s. Zaide Shipping Inc. , Liberia. The said vessel which was on high seas was agreed to be sold for U. S. $470,44. 50 and was agreed to be delivered at Tuticorin not before 25. 3. 1989 and not later than 30. 4. 1989. The vessel was safely afloat and was sea worthy, port worthy and in tact. At the time of allotment MSTC fixed provisional price of the vessel at Rs. 73,90,000/=, which was refixed at Rs. 75,18,775/= which has been paid by the plaintiff. The vessel arrived at Tuticorin outer port at 12. 45 hours on 28. 4. 1989 and was anchored. The vessel was under cover of valid insurance till it arrived at Tuticorin. Notice of readiness was served on the plaintiff stating that the vessel is ready for delivery in all respects along with the (a) Port-worthy certificate; (b) Certificate confirming light displacement weight of the vessel as per stability book and capacity plan on board the vessel; (C) certificate confirming tools/materials on board the vessel; (d) Certificate from local agent of the MSTC that there are no outstanding dues against the vessel at the time of delivery.