- (1.) THIS is an application for an order that the suit against the petitioner be dismissed and for certain alternative orders. The petitioner is the Corporation of lloyd's. The petitioner is the defendant No. 2 in the suit.
(2.) THE suit was instituted against Eagle Metal and Industrial Product, Pvt. Ltd. and the Corporation of Lloyd's for a decree for Rs. 7,051. 21 paise. In paragraph 5 of the plaint it is alleged that the goods sold by the defendant to the plaintiff and shipped to the plaintiff at Calcutta were insured by the defendant No. 2 by and under two certificates of insurance bearing Nos. C60/146479 and C60/146480 both dated 31 October, 1980. The certificate of insurance is couched in the following language : "this is to certify that there has been deposited with the Committee of Lloyd's an open cover effected by M/s. Walrond, Scarman and Company of Lloyd's acting on behalf of Eagle Metal and Industrial Products Pvt. Ltd. with underwriters at Lloyd's dated 6 August 1959 by which they undertake to issue to M/s. Walrond, Scarman and Company duly stamped floating policies of Marine Insurance at Lloyd's to cover up to 50000, in all by any one steamer and/or motor vessel or sending by air and/or conveyance, metal of all kinds including scrap and/or chemicals and/or general merchandise, to be shipped on or before the 30 September 1960 from any port or ports, place or places in the world to any port or ports, place or places in the world. " It appears from the certificate of insurance that the brokers are M/s. Walrond, scarman and Company. The Eagle Metal and Industrial Products Pvt. Ltd. were the shippers. There is no dispute as to the certificate of insurance.
(3.) THE policy No. 130940 dated 30 December, 1960 was also used in this application and there is no dispute as to the policy. In the policy it appears that the Assurers, members of the Syndicate whose definitive numbers in the attached list are set out in the Table overleaf, or attached overleaf, bind themselves each for his own part and not one for another and in respect of his due proportion only, to pay or make good to the assured all such loss and or damage which he or they may sustain by any one or more of the aforesaid perils, and so that the due proportion for which each of the Assurers is liable shall be ascertained by reference to the proportion as ascertained according to the said list of amount, percentage or proportion of the total sum assured which is in the said Table set opposite the definitive number of the Syndicate of which such assurers is a member. The list shows names of various assurers as also their definitive number and the digits mentioned in the policy. The Corporation of Lloyd's consists of various members. In paragraph 125 seq at page 104 seq in Arnold Marine Insurance, Volume 1 (British Shipping Laws. Volume 9, 1961 edition) appears the constitution and administration of the Lloyd's organisation and the manner in which the insurance business is carried on. It appears that Lloyd's agents are appointed by the Corporation and. they are not the agents of the individual underwriters. They perform important functions as surveyor and in many ways render services. The Committee of Lloyd's have made arrangements whereby claims on policies of underwriters at Lloyd's can be made payable by Lloyd's agents all over the world, thereby obviating the necessity of referring claims to London for settlement. The entire underwriting business at Lloyd's is transacted by the individual members of the society each of whom carries on his business for his own account and risk, either himself or through an authorised un-writing agent. It is a general practice for the members of the association to carry on their business through an agent who underwrites and acts for the whole group, or Syndicate. It should be borne in mind that such members do not form any partnership but are individual and several members. The Corporation of Lloyd's does not engage in the business of insuring. The policies issued by Lloyd's underwriters contain a tabular form for the insertion of the reference numbers of the Syndicate on the risk together with the proportion of the sum insured unwritten by each and the names of the individual underwriters in each Syndicate are also shown. Each underwriter makes a separate contract with the assured to the extent of his proportion of amount underwritten by the Syndicate. The right of action in the assured is consequently against each separately and not against all jointly.;