R.V. Raveendran, J. - (1.) Leave granted. Heard the learned Counsel.
(2.) In pursuance of a Banker's Indemnity Insurance Proposal dated 1.7.1976 from the appellant ('Bank'), the respondent ('Insurer') issued a Renewal Insurance Policy covering the period 1.7.1976 to 1.7.1977. The policy indemnified and insured the Bank against losses caused by acts or omission of the Bank's employees to a limit of Rs. 6 lacs (Basic cover) plus Rs. 9 lacs (cash in safe). The Bank furnished to the Insurer a list of its branches to be covered by the insurance which included Dhamangaon Branch and the names of the employees working in those branches. The operative portion of the policy is extracted below: THE COMPANY HEREBY AGREES subject to the terms and conditions contained herein or endorsed or otherwise expressed herein that if the Insured shall discover any direct LOSS of Money and/or Securities sustained by the Insured by CONTIGENCIES as provided hereinafter at any time during the period of insurance stated herein or any subsequent period in respect of which the Insured shall have paid or agreed to pay and the company shall have accepted or agreed to accept the premium required for the renewal thereof, the company will indemnify the Insured in respect of all such direct losses but not exceeding, (a) the total sum insured hereby in respect of any loss or losses caused by acts or omissions of any one person whether Officer, Clerk or Employee of the Insured or acts or omissions in which such person is concerned or implicated or in respect of any one casualty or event irrespective of the total amount of such loss. (b) in any one period of insurance twice the total sum insured hereby in respect of all such losses. In lieu of Cover Note No: RENEWAL Policy No: 264/52/1/00402 Schedule INSURED NAME: THE AMRAVATI DISTT. Date of Proposal & CENTRL COOP. BANK LTD., HEAD Declaration OFFICE, 1.7.76 ADDRESS: AMRAVATI TOTAL SUM Rs. 6,00,000/- (Basic cover) PREMIUM INSURED And Rs. 9,00,000/- (Cash in Rs. 34,443/- Safe) H.O. Amravati EXCESS 25% on each and every claim or RETRO-ACTIVE Rs.11,500/- Rs. 11,500/-whichever is higher on DATE (PROVISO 3) D.A.R. - 2 YEARS PERIOD OF From 1st July, 1976 to 1st July, 1977 INSURANCE SPECIAL Contingency No.5 of the policy stand deleted. CONDITIONS xxxxxx CONTINGENCIES INSURED 1. By reason of any Money and/or Securities for which the Insured are responsible or the custody of which they have undertaken and which now are or are by them supposed or believed to be or at any time during the period of insurance may be in or upon their own premises or upon the premises of their Bankers in any recognised place of safe deposit in India or lodged or deposited in the ordinary course of business for exchange, conversion or registration with the issuers thereof, or with any agents of such issuers or with any person employed to procure or manage the exchange, conversion or registration thereof, being (while so in or upon such premises or so placed, lodged or deposited as aforesaid) lost, destroyed or otherwise made away with by Fire, Burglary, or House breaking, Theft, Robbery or Hold-up, whether with or without violence and whether from within or without and whether by the Officers, Clerks or Employees of the Insured or any other person or persons whomsoever. 2. By reason of any Money and/or Securities being lost, stolen, mislaid, misappropriated or made away with, whether due to the negligence or fraud of the officers, Clerks or Employees of the Insured or otherwise, whilst in transit in the hands of such Officers, Clerks or Employees within India, such risk of transit to commence from the moment when the person into whose hands the same may be delivered on behalf of the Insured shall leave the premises at which he receives the same and to continue until delivery thereof at destination.
(3.) By reason of the payment made whether received over the Counter or through the Clearing House or by Mail in respect of forged or raised Cheques and/or Drafts or (genuine) Cheques and/or Drafts bearing forged endorsements or the establishment of any credit to any customer on the faith of such documents.;