Insurance Company cannot Raise delay as A Ground for Repudiation: SC

Saurashtra Chemicals Ltd. Vs. National Insurance Co. Ltd  (Supreme Court)

BRIEF FACTS:

1. The appellant purchased a standard fire and special perils policy from the respondent National Insurance Company Ltd. thereby insuring the risk of loss/damage to the stock of coal and lignite stored in its factory compound.

2. An additional premium was paid by the appellant company so as to cover the risk of loss of the aforesaid stock on account of spontaneous combustion.

3. The appellant was declared a Sick Unit and was accordingly registered under SICA. The factory remained closed from 17.02.2006 to 09.08.2006 and was re-opened on 10.08.2006.

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