S.N.Aggarwal, J. - (1.) The Punjab Cotton Company (Export-Import) Ltd. Cotton Merchants & Commission Agents Bathinda (respondent No. 3) was the owner of 90 bales of cotton which were duly pressed. It was duly insured with respondent No.1 M/s United India Insurance Company Ltd. (in short 'the Insurance Company'). The said cotton bales were entrusted by respondent No. 3 to Truck Operator Union Fazilka (respondent No. 2) on 19.1.1992 for the purpose of transportation. Later on respondent No. 2 entrusted 50 bales of cotton out of 90 bales of cotton to the appellant for transportation Ex. U.P. Border Gaziabad. Ultimately the material was to be delivered to M/s Katheyee Cotton Mills Ltd. Alwaye. The material reached the godown of the appellant on 25.1.1992 and it was stored for onward dispatch to the consignee. A fire broke out in the godown of the appellant on the night intervening 26/27.1.1992. As a result the cotton bales alongwith other articles lying in the godown of the appellant were burnt. As a result the consignment could not be delivered to M/s Katheyee Cotton Mills Ltd. Alwaye. A certificate to that effect was issued by the appellant to the owners. Since the material was insured with respondent No. 1 therefore the owners respondent No. 3 were duly compensated by the Insurance Company- respondent No. 1 for the loss suffered by them i.e. to the tune of Rs. 321078.85 P.
(2.) On this the United India Insurance Company Ltd.-respondent No. 1 filed a civil suit against the appellant for recovery of Rs. 321000/-. The appellant filed the written statement and contested the case on merits besides pleading some legal objections.
(3.) The issues were framed. The parties led the evidence.;