SOUTH BRITISH INSURANCSE CO LTD Vs. JRSTENSON

JUDGEMENT

(1.) This is a reference made by the Small Causes Court, Bombay, under Section 69 of the Presidency Small Causes Courts Act. The defendant intended to insure his motor car and supplied the particulars in a printed form, Exhibit C, which was agreed to be the sole basis of the contract, The plaintiff Insurance Company issued a policy Exhibit A containing a proviso as follows :- No insurance shall be held to befitted until the premium due thereon shall have been paid and accepted in full and that the due observance and fulfilment of the conditions of the Policy, in as far as they relate to anything to be done or not to be done by the insured, shall be a condition precedent to any liability of the Company under this Policy, and in this respect time shall be of the essence of the contract.

(2.) On October 12, 1925, the defendant received a policy purporting to operate from October 1, 1925, with a demand for the premium. The defendant retained the policy, and failed to pay the premium. The present suit was brought to recover Rs. 78-14-0, the amount due as short period premium.

(3.) The questions referred for the opinion of this Court are :- (1) Whether on the facts disclosed in the evidence in this case, there was it completed and binding contract between the parties; and (2) Whether the defendant was liable to pay the premium sued for.