RAJA SPINNERS Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The complainant, Raja Spinners, Ludhiana, a partnership firm registered under the Partnership Act, is engaged in the business of manufacturing Shaddy yarn from Synthetic and Woollen Waste. The complainant took loan from the Punjab Financial Corporation, Chandigarh for the purpose of raising the building, installation of machinery and other fixed assets, the Punjab Financial Corporation at the time of sanctioning the loan imposed a condition that the fixed assets including the building and the machinery of the complainant firm shall be insured from any subsidiary Company of the General Insurance Co. of India. Complying with the so imposed condition the complainant firm had taken one insurance policy from the Oriental Insurance Company Ltd. , Chandigarh. The factory was insured from the very first day of its existence. The opposite party issued the Policy No.11/96/ 00046 along with terms in favour of the complainant commencing from 11.4.1995 for a period of one year, a copy of which was retained by the Punjab Financial Corporation, Chandigarh. A copy of the proposal form covering the terms and conditions of the insurance policy is annexed as C-2. For the manufacturing of shaddy yarn, the complainant had installed the following machinery : 1. Rag Cutting Machines

(2.) Rag Tearing Machines

(3.) Willow Machine/misting Machine