ORIENTAL INSURANCE CO LTD Vs. KRISHNA ENTERPRISES

JUDGEMENT

(1.) Respondent (in the present appeal), moved a writ petition under Article 226 of the Constitution of India before Learned Single Judge of this court based on the facts that the petitioner, who is respondent in this appeal had exclusive showroom for the sale of Titan Watches and got his stock lying in the shop insured with the appellant against theft and fire. The claim has been made against theft which took place in the shop in the night intervening 12th and 13th November, 1994. It is not disputed that the theft took place as mentioned, hereinabove and the insurance cover was for Rs. 9,00,000/-, Petitioner submitted claim for a sum of Rs. 7,48,780/- and statement of stock was furnished. The claim was settled on 12th June, 1995 and petitioner was held entitled to a sum of Rs.6,30,405/- and it is also not disputed that a cheque in this regard was issued which was also encashed.

(2.) The only dispute before the writ Court was whether, the claim was to be decided taking into consideration the sale price of stock or the purchase price of the stock. The difference between two prices being Rs.1,80,275 was claimed alongwith the interest.

(3.) Appellant/respondent contested the claim and also raised preliminary objection that such dispute cannot be decided in exercise of powers envisaged under Article 226 of the Constitution of India. However, learned Single Judge by the impugned order brushed aside the objection by taking into consideration various decisions on the point. Learned counsel for the appellant submits that none of the decisions referred to in the impugned order are applicabe in the instant case as most of the decisions relate to the matters wherein, some breach of fundamental right was commited and compensation was awarded on account of breach of such fundamental right. It is further submitted that none of these cases relate to any contractual liability or any matter pertaining to insurance.