- (1.) Civil Appeal No. 2339 of 1992 The respondent M/s Roshan Lal Oil Mills (P) Ltd. , together with punjab Financial Corporation, Punjab State Industrial Development corporation and State Bank of Patiala, had jointly obtained from the appellant a fire insurance policy in respect of the "stock of mustard seeds and/or toria and/or soyabean and other goods of oilseeds of like nature stored in a silo installed near the oil mill in the factory premises of the respondent situated at Mansa Road, Bhatinda". The details of goods insured are: oilseeds stock (value) Rs 1,00,00,000 silo (1st class construction) Rs 10,00,000 it was also mentioned in the insurance policy that the stock of oilseed of the value of Rs 1 crore was pledged with State Bank of Patiala (City Branch) , bhatinda, together with a silo which was pledged/hypothecated with Punjab financial Corporation and Punjab State Industrial Development Corporation, chandigarh for Rs 10,00,000.
(2.) In consideration of additional premium, the appellant subsequently extended the insurance cover to "loss or damage by fire only to the property insured caused by its own fermentation, natural heating or spontaneous combustion".
(3.) On 3-8-1990, the respondent reported to the Senior Divisional manager, United India Insurance Co. , Bhatinda, as under: "Please refer to above policy regarding storage of (i) seeds. It is for your information that about 9860 (I) mustard seed stored in silo has been affected due to self-spontaneous combustion. You are requested to please register our claim and arrange to depute the surveyor to assess the loss and to avoid any further loss to goods. ";