PUNJAB STATE CO-OPERATIVE SUPPLY AND MARKETING FEDERATION LIMITED Vs. ORIENTAL INSURENCE COMPANY LIMITED

JUDGEMENT

(1.) Plaintiff (The Punjab State Cooperative Supply & Marketing Federation Limited - Markfed) having been non-suited by both the Courts below has filed this second appeal. Dispute relates to fire insurance claim made by plaintiff appellant against defendant/respondent-The Oriental Insurance Company Limited. Insurance of the plaintiffs unit, which caught fire, had expired on 29.09.1988. Quotations for insurance for the further period were received by the plaintiff on 10.10.1988. The same were allegedly accepted on 13.10.1988 and subsequently on 31.10.1988.

(2.) Plaintiffs case is that cheque for insurance premium along with forwarding letter was given by plaintiff on 01.11.1988 at 10.30 am in plaintiffs office to Mr. S.P. Singh, Development Officer of defendant respondent who visited the office of the plaintiff on the said date and time. The unit of the plaintiff caught fire on 01.11.1988 itself at 2.45 p.m. Intimation was sent to the defendant at about 4.30 p.m. Defendant deputed surveyor who visited the unit on 02.11.1988 at about 3 p.m. and made some preliminary enquiries. However, the defendant issued letter dated 02.11.1988 intimating that fire had taken place in the factory of the plaintiff prior to receipt of cheque of insurance premium by the defendant and, therefore, there was no insurance cover of the factory at the time of the incident of fire. The plaintiff, however, alleged that cheque of insurance premium had been given to defendant's Development Officer prior to the fire because the cheque was given at 10.30 a.m. and the fire occurred at 2.45 p.m. on 01.11.1988.

(3.) The defendant, however, reiterated its stand that the cheque was received after the fire had already taken place. The cheque was delivered at the house of Development Officer S.P. Singh at about 9 p.m. on 01.11.1988 and he delivered the cheque in the office on 02.11.1988 and the cheque was returned by the defendant to the plaintiff on 02.11.1988 itself because the fire incident had already taken place.