PRASANNA KUMAR ACHARYA Vs. THE DIVISIONAL MANAGER

JUDGEMENT

(1.) This appeal, at the instance of the plaintiff, assails the judgment of the learned Addl. District Judge, Aska in Money Appeal Nos.1 and 2 of 1999.

(2.) Plaintiff-appellant instituted the suit for realisation of Rs.40,566.64 p. from defendant no.1 and Rs.27,772.69 p. from defendant no.2 with PI&FI. Briefly stated, the case of the plaintiff is that he is the owner of a shop, namely, M/s. Acharya Electronics. He availed a cash credit loan of Rs.20,000/- from the State Bank of India, Aska ('Bank'). He had stock of Rs.30,000/- in the shop. The Bank insured the shop with the New India Assurance Co. Ltd.- defendant no.2 for Rs.30,000/-. The policy was valid from 14.7.1984 to 14.7.1985. Thereafter, the stock was increased to Rs.50,000/-.

(3.) Defendant no.1 entered contest and filed a written statement denying the liability. It was pleaded that the plaintiff insured the stock of Rs.50,000/- from 7.10.1983 to 6.10.1984. He had not sent a letter along with a cheque of Rs.300/- to defendant no.1 for renewal of policy, i.e., from 7.10.1984 to 6.10.1985. There was no policy on the date of alleged occurrence. It was not liable to pay compensation. It was further pleaded that the cheque in question had been sent to the L.I.C of India. L.I.C of India sent the same to the Regional Office of defendant no.1. Ultimately the cheque was received by defendant no.1 on 21.12.1984 and as such, no risk was covered on 21.12.1984.