SOYA UDYOG LTD. Vs. UNITED INDIA INSURANCE CO.LTD.

JUDGEMENT

(1.) THE short question involved in these Appeals is whether the Insurance Company can repudiate a claim, even after receipt of premium and issuance of policies, on the sole ground that the premium was not received by it in advance as provided in Sec. 64 -UB of the Insurance Act, 1958. It is contended by the Insurance Company that the premium was accepted by the officers of the Insurance Company inadver -tently without powers, in violation of the provisions of Section 64 -UB , and hence, the contract of insurance is void. That contention of the Insurance Company was accepted by the State Commission.

(2.) IT is the contention of the Comp -lainant/Appellant in all the appeals, that it is a private limited company, engaged in manufacture of soya oil and cake. It took marine insurance policies for safe delivery of soya extraction from Shujalpur to Wind Mill (Jam Nagar). The consign -ment reached the destination, but in all the cases there was short delivery. Hence, it has submitted transit insu -rance claims under marine insurance policies. Those Claims were repudiated by the Insurance Company on the ground that premiums paid cheques were not received in advance as required by Sec. 64UB of the Insurance Act, 1958 (hereinafter referred to as the Act). It was contended by the Complainant that the said repudiation was illegal and the cheques were accepted, policies were issued before movement of the railway racks. The claims were repudiated after a period approximately 3 year of the occurrence of peril.

(3.) HENCE , complaints were filed before the Madhya Pradesh State Consu -mer Disputes Redressal Commission, Bhopal. These complaints were dismissed by order dated 23.3.2000. Against those judgments and orders these appeals are filed.