INDOSIN LTD Vs. UNITED INDIA INSURANCE LTD

JUDGEMENT

(1.) THE key controversy in this one and half decade old case pivots around the question, "whether the bankruptcy or insolvency of the owners of a ship can cause a hole in the claim made by the insured".

(2.) THE above said complaint was filed as back as on 7.9.2001. In this case, M/s Indosin Ltd. - the complainant has claimed a sum of Rs.40,75,651/ - alongwith pendentalite and future interest @ 18% till the actual payment from United India Insurance Company Ltd. -OP -1 and its functionary -OP -2. The complainant received purchase order from M/s Modi Alkalies and Chemicals Ltd. 18, Community Centre, New Friends Colony, New Delhi for supply of 100 tons of Calcium Carbide for a value of US$ 38,500 C and F Mumbai from M/s Govcrest International SRL 23 -J.L., Calderon Street, Bucharest Romania. The complainant was authorised by the purchaser M/s Modi Alkalies and Chemicals Ltd., by its letter dated 06.11.1997 to open letter of credit in favour of M/s Govcrest International SRL against the purchase order. The copy of letter of authority, the letter of credit No.NEHPAR 977041 dt. 13.11.97, the invoice No. 889 dated 30.12.97 have been placed on the record as Annexures C -3, C -4 and C -4 A respectively.

(3.) THE above said goods were to be shipped through the vessel MV SAPPHIRE under Bill of Lading No. 62 dated 30.12.1997 from Port of Loading CONSTANTA (Romania) to Port of Discharge (Mumbai -India). It was further agreed vide agreement dated 06.11.1997 that the Bill of Lading No. 62 dated 30.12.1997 shall notify address of the party as M/s Modi Alkalies and Chemicals Ltd., Alwar, Rajasthan. The copies of the agreement and bill of loading have been placed on the record as Annexures C -4B and C -4C.