INDUSTRIES Vs. NEW INDIA ASSURANCE CO. LTD

JUDGEMENT

(1.) Heard Mr. Madon, Senior Advocate in support of this petition. Mr. Vidyarthi appears for the respondent Nos. 1 and 2. The petitioners seek to challenge the communication dated 18th May, 2004 from the respondent Nos. 1 and 2 rejecting the insurance claim made by petitioners on account of the fire which is said to have occurred at their factory on 19th August, 2003. The petitioners are supposed to be having a factory at the Industrial Estate Area on Kalyan-Bhivandi Road in District Thane and it is their case that the factory and the stock were covered under the insurance policy with the first respondent. They lodged their claim for the loss of raw material and finished goods to the tune of Rs. 2.23 crores and the plant and machinery to the tune of Rs. 23.34 lakh.

(2.) The respondents have rejected this claim by their impugned letter dated 18th May, 2004. The rejection letter gave three major reasons, which were as follows:

(3.) Mr. Madon, learned Counsel appearing for the petitioners relied upon a judgment of the Apex Court, in the case of A.B.L. International Ltd. & Anr. v. Export Credit Corporation of India and Ors.,2004 1 SLT 381 and particularly paragraph 19, thereof which states that merely because one of the parties to the litigation raises a dispute in regard to the facts of the case, the Court entertaining such petition under Article 226 was not bound to always relegate a party to a suit. He referred to para 27(a) thereof which states that in appropriate cases a writ, arising out of contractual obligations is maintainable against the State or its instrumentality. He referred to the report of the Fire Officer to contradict the stand taken by the respondents. Mr. Madon submitted that the respondents are trying to defend their case by relying upon the Surveyor s report, which was subsequent to their letter of repudiation and then relied upon paragraph 8 of the judgment of the Apex Court in the case of Mohinder Singh Gill and Anr. v. The Chief Election Commissioner, New Delhi and Ors., 1978 AIR(SC) 851, to submit that the reasons in an order cannot be supplemented by fresh reasons in the shape of affidavit.