In Brief
New India Assurance Company Limited challenged a State Consumer Disputes Redressal Commission's decision allowing an insurance claim by Rajeshwar Sharma for loss caused by partial demolition of his building by the Jammu and Kashmir Municipal Corporation. The insurer invoked a policy exclusion for destruction "by order of any lawfully constituted authority." The State Commission and High Court had held the exclusion did not apply because no formal demolition order was placed on record. The Supreme Court held that where demolition by a lawfully constituted authority is undisputed, the exclusion clearly applies regardless of whether a formal written order is produced. The Court allowed the insurer's appeal and set aside the lower courts' judgments, clarifying that the legality of the demolition remains a separate issue pending in civil litigation.</summary_100> </invoke>
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