HINDUSTHAN MOTORS LTD Vs. NATIONAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) THE plaintiff claims a money decree against the defendant nos. 1 and 2 on the basis of a contract of insurance.

(2.) ACCORDING to the plaintiff, it had entered into two several contracts of insurance both dated April 1, 1986 with the defendant nos. 1 and 2 whereby and whereunder the plaintiff was indemnified for loss and damages caused, inter alia, by fire to all sorts of vehicles, engines, components, parts, raw materials, accessories lying in or about the factory of the plaintiff. Both the defendants issued interim protection notes on April 30, 1986 with effect on and from April 1, 1986 and valid up to April 1, 1987. Three several interim protection notes were issued in favour of the plaintiff. The premia in respect of the insurance contract was secured by five several bank guarantees issued on behalf of the plaintiff. The plaintiff caused such bank guarantees to be extended till March 31, 1987. According to the plaintiff it paid the premia under the contract of insurance by five several cheques. On September 30, 1986 the defendant no. 1 invoked the bank guarantees and received the premia in respect of the contract of insurance. According to the plaintiff on June 29, 1986 a fire broke out at a portion of the factory of the plaintiff causing severe and extensive damage to various items of the insured assets resulting in loss and damages covered by the contract of insurance. The plaintiff informed the defendant no. 1 as to such incident by a letter dated June 29, 1986. By a letter dated July 2, 1986 the defendant no. 1 informed the plaintiff about the appointment of Surveyors. By a letter dated July 10, 1986 the plaintiff requested the defendant no. 1 to allow the plaintiff time to prepare a detailed estimate. Such extension of time was granted by the defendant no. 1 by its letter dated July 21, 1986. Under cover of letters dated July 27, 1986 and August 11, 1986 the plaintiff submitted its detailed claim amounting to Rs.6,13,82,653/ -. The plaintiff claims realization of a sum of Rs.6,13,82,653/ - from the defendants along with interest thereon.

(3.) THE defendant no. 1 has filed written statement and is contesting the instant suit. The defendant no. 1 claims that, the fire occurred at a place which was not covered under the contract of insurance. The defendant denied its liability to pay any sum to the plaintiff.