PURNIMA ENTERPRISES Vs. ORIENTAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) THIS letters patent appeal has been filed against the order dated 8 January 2002 on First Appeal No. 162 of 2000 : The Oriental Insurance Company Ltd. V/s. M/s Purnima Enterprises.

(2.) THE court has heard submissions on behalf of the appellant notwithstanding the aspect that the appeal as a letters patent appeal against a judgment in a civil appeal or an interim order and/or stay order may not be maintainable. It needs to be made clear at the outset that the order which has been challenged in appeal is a stay order. The appeal is still pending. The portion which aggrieves the appellant in the present letters patent appeal is reproduced : "Having heard learned counsel for the parties, this court directs that there be stay of further proceedings of Execution Case no. 1/2001 pending before the Subordinate Judge V/s. Muzaffarpur arising out of Title Suit No. 59 of 1992, during the pendency of this appeal, on appellants -Company paying the amount, which was initially offered by them and admittedly not accepted by the respondent, with up -to -date interest at the rate of 12% per annum within two weeks and depositing the entire remaining decretal amount in fixed deposite earning maximum interest in any nationalised Bank in the name of the Company itself by way of the Bank guarantee in favour of the respondent to be finally released according to the final outcome of this appeal."

(3.) REGARD being had to the circumstances that the matter itself arises out of a contract of insurance this is a circumstance of fact and not one of issue of any rights which may have flown to whomever they may accrue arise out of an insurance policy, which was taken out by the appellant from the insurance company, the respondent. It is a matter of interpretation whether an insurance policy is a mere insurance against loss or is a contingency policy.