DIVISIONAL MANAGER, ORIENTAL FIRE AND GENERAL INSURANCE CO AND ANOTHER Vs. COLD STORAGE CO-OPERATIVE SOCIETIES LTD AND OTHERS

JUDGEMENT

(1.) The respondent Nos. 1 and 2 as the plaintiffs filed Money Suit No. 73 of 1983 before the learned Subordinate Judge, Baragarh. By the judgment and decree dated 17.08.1985 and 26.08.1985 respectively, the learned court below decreed the suit which are under challenge in the present appeal.

(2.) Parties have been described as per their status in the suit before the learned court below for the sake of convenience.

(3.) The case of the plaintiffs-Society in brief is that plaintiff No.1 is a registered Co-operative Society and plaintiff No. 2 is its Secretary. The main function of plaintiffs-Society is to store potatoes of the cultivators in the Cold Storage on payment of storage charges. During 1980-81, 5300 quintals of potatoes were kept in the Cold Storage chamber for safe storage by different cultivators. The above stock was insured on 24.04.1981 with the defendant No.1-Company covering all sorts of risks against damages of potatoes on payment of premium amount of Rs.4,100/- to the said defendant through its authorized agent i.e. defendant No.5. After receipt of the above premium, the defendant No. 5 issued one cover note on behalf of the defendant No.1-Company. The period of insurance coverage commenced from 26th April, 1981 till 25th December, 1981. The cover note was issued pending issuance of stand policy of insurance. Subsequently, the defendant No.1-Company did not issue the policy despite repeated reminders and notices by the suit Co-operative Society. During the coverage period, despite precaution taken by the Society, the stock started getting damaged due to fluctuation of voltage in supply of electricity as well as failure of electricity supply at some times.