BAHUBALI TRADERS Vs. CHOLAMANDALAM GENERAL INSURANCE CO LTD

JUDGEMENT

(1.) The complainant namely M/s. Bahubali Traders (P) Ltd. obtained a Fire & Special Perils policy from OP-1 namely M/s. Cholamandalam MS General Insurance Co. Ltd. in respect of stock of raw material and finished jute products in the premises of Nuddea Jute Mill at Chetan Sett Street in Kolkata, for a sum insured of Rs. 2 crores, which was later increased to Rs. 6.5 crores. The complainant obtained credit facility of Rs. 5 crores in respect of stock of raw jute kept at the aforesaid premises. No credit facility was taken from ICICI Bank in respect of finished jute products. Raw jute stock was pledged by the complainant with ICICI Bank by executing Pledge Agreement with the said bank on 29.08.2005.

(2.) The complainant entered into an agreement with Central Warehouse Corporation (CWC) for managing/operating the warehouse, where the raw jute and finished jute products had been stored. Under the said agreement, the warehouse area/premises was handed over to CWC, clause 11 of the said agreement, to the extent it is relevant reads as under:-

(3.) The said agreement was amended w.e.f. 27.06.2006 vide addendum dated 01.10.2005, whereby the agreement between the complainant and CWC was extended to 10,000 M.T., comprising 5000 M.T. jute and 5000 M.T. finished products.