Central Warehousing Corporation vs Oriental Insurance Company Ltd. & … on 8 May, 2018

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

to 27.7.1996.

Source: Indian Kanoon

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