- (1.) This appeal by special leave arises from the judgment of the Division Bench of the Andhra Pradesh High Court, made on April 21, 1976 in Appeal No. 157/73.
(2.) The admitted facts are that Vijay Commercial Corporation submitted a proposal for insurance to cover certain risks, viz., supply of 12 Bulldozers of Yugoslavian make, under Ex. A-22 dated July 23, 1966, which was subsequently extended by fresh policy, Ex. A-3, dated July 27, 1966, wherein the Chief Engineer of State of Orissa was also included as one of the insured. The insurance coverage was for Rs. 27 lakhs. Before commencement of the contract for said supply, a notice was issued on December 6, 1966 cancelling the insurance. Since the appellant had claimed under the insurance policy, the Insurance Company, namely, Hindustan Ideal Insurance Company Ltd. laid a suit in the trial Court for declaration that the insurance coverage was duly cancelled and for consequential injunction. The trial Court granted the decree. On appeal, the High Court confirmed the same by the above judgment. Thus, this appeal by special leave.
(3.) The only question is:whether the appellant is entitled to damages from the Insurance Company for non-supply of 12 bulldozers through their agent, Vijay Commercial Corporation, who had the insurance from the Insurance Company. The High Court extracted all the relevant clauses in the contract of insurance and held that it was a "Marine and Transit Insurance" policy under Ex. A-22 and non-supply of bull-dozers was not a condition of this policy and further, since, under the contract the insurer was entitled to terminate the contract in terms of the insurance, the cancellation thereof was valid in law and that the respondents were not liable for damages for non-supply of the goods.;