UNITED INDIA INSURANCE CO LTD Vs. HINDUSTAN PAPER CORPORATION LTD

JUDGEMENT

(1.) This appeal is directed against the judgment and decree dated 18.12.1999 passed by the Civil Judge, Sr. Division, Hailakandi in Title Suit No. 43/91.

(2.) The respondent plaintiff, Hindustan Paper Corporation Ltd., hereinafter referred to as The Corporation instituted Title Suit No. 43/91 stating inter alia that a quantity of 1798.380 MT of unstaked lime was despatched by Railway to Jogighopa Railway Station by Railway rake. The plaintiff had engaged defendant A.B.C. India Ltd. for transportation of the said goods from Jogighopa to Cahcar Paper Mill premises at Panchgram and the entire goods of the consignment was insured against loss of transit by the defendant No. 2 United India Insurance Co. Ltd., the present appellant before us. It was an open policy valid from 1.5.88 to 30.4.89. The defendant No. 1 took delivery of the above goods at Jogighopa Railway Station but failed to deliver the same as a result of which the plaintiff sustained loss and accordingly the claim was preferred. As the defendant refused to pay, the plaintiff instituted a suit claiming of Rs.l8,32,571.47p being the costs of the goods inclusive of freight and a further sum of Rs.4,58,142.86p being the incidental cost at the rate of 25% on the above amount. The plaintiff prayed for a joint decree against both the defendants.

(3.) The two defendants contested the suit by filing written statement whereupon the following five issues were framed :