In Brief
A chemical manufacturer sought insurance coverage for its factory premises and filed a claim after a fire in 2002. The insurer repudiated the claim on two grounds: overvaluation of the factory and non-disclosure that the appellant lacked a required license to store hexane. The Supreme Court held that under the Petroleum Rules, 1976, a license is mandatory for storing hexane (a petroleum Class A substance) exceeding 300 liters, and the exemption under the 2000 Solvent Order does not apply to the Petroleum Rules. Since the appellant stored over 90 kiloliters without the required license and failed to disclose this, the insurer was justified in repudiating the claim for material non-disclosure. The appeal was dismissed.
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