(1.) VERSION of the appellants. Satish Kumar appellant was the sole proprietor of M/s. S. Kumar Trading Company, appellant No. 2. They were running the business of sale and purchase of Rice Bran, Kani, Powder Shan etc. at FCI Road, Moga. Appellant No. 1 was running this business by way of self -employment.
(2.) IT was further pleaded that the appellants were having flourishing business. They had taken the cash credit limit of Rs. 10,00,000 (Ten lacs) from respondent No. 2 regarding the stock of Rice Bran, etc. The goods were hypothecated with respondent No. 2.
(3.) IT was further pleaded that respondent No.2 had got insured the goods from respondent No. 1 directly for the period from 13.8.2005 to 12.8.2006 and the premium was debited in the account of the appellants. Before the officials of respondent No. 1 had issued the insurance policy, they had visited the premises of the appellants where the stock was lying at DD Rice Mills, FCI Road, Moga. The cover note/insurance policy was issued after the officials of respondent No. 1 had satisfied themselves.