In Brief
A partnership firm imported steel coils via a vessel classified as 'I.R.S.' under a marine cargo insurance policy issued by the respondent insurer. When the vessel ran aground, it could not recover losses because the vessel's classification did not comply with the Institute Classification Clause (ICC)—a warranty in the policy requiring vessels to be classed with member societies of the International Association of Classification Societies. The Supreme Court held that the appellant breached this warranty by providing incomplete vessel details and failed to promptly notify the insurer of non-compliance. The insurer's issuance of a General Average Guarantee (made without knowledge of the breach, to mitigate losses in good faith) did not waive the warranty breach. Consequently, the insurer's liability was discharged and the appellant's claim was rightly repudiated.
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