In Brief
An oil company claimed insurance for losses from a Hexane leak but the insurer rejected the claim because the company failed to disclose that it lacked the required licence for storing Hexane under the Petroleum Rules, 1976. The Supreme Court upheld the rejection, holding that such a licence was mandatory for the quantity of Hexane involved, and non-disclosure of this fact was a material violation of insurance policy conditions. The Court also clarified that orders under the Essential Commodities Act do not replace existing licensing requirements under the Petroleum Act.
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