M MOHAN LAL KALIA Vs. WOOD TRADING CO

JUDGEMENT

(1.) The plaintiff-appellant, Mohan Lal Kalia, placed an order with the respondent, Messrs. Wood Trading Co., Hongkong for 2,50,000 hosiery needles at a rate of Rs. 12/- per thousand. The goods arrived at Ludhiana in the month of August 1952, and were examined by Gillanders Arbuthnot and Co. Ltd., surveyors, on 26th of August 1952. The total number of needles actually in the parcel received by the plaintiff-appellant was 27,200, making a shortage of 2,22,800 needles. According to the report of the surveyors,

(2.) The plaintiff brought a suit both against the consignors and the Insurance Co. for a sum of Rs. 4,490/- which was made up of the price of needles which were withheld by the consignors and also the expected profits which were likely to accrue to the plaintiff. The consignors did not oppose the suit at all and an ex parte decree has been granted in plaintiffs favour against the Wood Trading Co. for Rs. 4,490/-. It was, however, found that respondent No. 2 is not liable as the subject-matter of the loss was not covered by the perils insured against. The learned District Judge, in appeal, affirmed the decree of the Subordinate Judge. The plaintiff has come in second appeal to this Court and has claimed that a decree should be granted also against the second respondent, the Hanover Fire Insurance Co.

(3.) The case turns entirely on the terms of the contract of insurance which is contained in the policy of insurance, Exhibit P. 3. which accompanied the documents despatched by the consignors to the plaintiff. The insured goods are described to be five cartons "said to contain 63,000 pcs. of knitting machine needles."