2. The facts of the case are that plaintiff pleads that it had
been storing paddy stocks at Dhuri open Warehousing facility of the
plaintiff corporation situated at Punjab. Paddy stocks which were
stored by the plaintiff belonged to Food Corporation of India (FCI).
FCI had to lift the stocks before 31.5.1995, and since FCI could not do
so, and because of the factum of ensuing monsoon and slow pace of
liquidation of the stocks by FCI, the officers of plaintiff at Dhuri
Warehouse suggested an insurance to be obtained for the stocks lying
in the open at Dhuri Warehouse. Insurance was to be obtained against
flood and fire risk. On FCI being informed, FCI agreed to insure its
stocks and reimburse the actual insurance premium to the plaintiff.
The plaintiff on 28.7.1995 accordingly obtained an insurance policy
from the defendant/insurance company at about 5:30 P.M. The sum
insured was Rs. 34 crores and the plaintiff paid a premium of
Rs.50,19,420/-. Insurance policy covered the period from 28.7.1995
Source: Indian Kanoon