Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insurance |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Insurance – Fidelity Insurance – Respondent is a Collateral Management Company which stores commodities pledged by farmers, traders etc., in availing loan from lending banks and other institutions – In case of any loss of the pledged commodities, respondent is liable to make good the loss to the lending bank – Respondent took Fidelity Guarantee Insurance Policy from appellant-insurance company in respect of the pledged commodities stored in godowns – Three firms entered into agreements with respondent for storing commodities including urad and mentha oil – Urad unauthorizedly removed from the godown – Respondent took steps to prevent possible loss to oil – 601 barrels of oil were shifted to another godown – On quality check, it was revealed that mentha oil was substituted by water in the barrels – Claim lodged by respondent with appellant – Not accepted – National Commission allowed claim towards loss of mentha oil but rejected the claim so far as urad was concerned – Held: Fidelity Guarantee is different from contingency guarantee – Protection afforded is different than in normal insurance policies – It is a contract whereby, for a consideration, one agrees to indemnify another, against loss, arising from the breach of honesty, integrity or fidelity of an employee or other person holding a position of trust – Impugned order is assailed mainly on the ground that the respondent failed to prove involvement of any of its employees, as such there cannot be any liability on appellant – Survey report itself indicates involvement of respondent’s employees in removing 601 barrels of mentha oil stored by the respondent – It has a specific observation that respondent’s security guard allowed owner to lift the stock – In the complaint filed by respondent specific allegation is made about involvement of its staff – There is a clear involvement of respondent’s employees and other contract employees in substituting the mentha oil barrels with water– No reason to interfere with the impugned order. |
Judge | Hon'ble Mr. Justice R.Subhash Reddy |
Neutral Citation | 2020 INSC 175 |
Petitioner | Oriental Insurance Co. Ltd. |
Respondent | National Bulk Handling Corporation Pvt. Ltd. |
SCR | [2020] 3 S.C.R. 757 |
Judgement Date | 2020-02-12 |
Case Number | 10409 |
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