In Brief
Sangrur Sales Corporation's insurance claim was repudiated by United India Insurance Company based on an exclusion clause covering demolition, construction, and repair work. However, the damage was caused by excavation work carried out by a third party on a neighbouring property, with no involvement by the insured. The Supreme Court held that exclusion clauses must be reasonably construed and cannot apply to work performed by third parties outside the insured's control. Since the insured was not engaged in the excluded activities and bore no responsibility for the third party's actions, the claim should be covered. The appeal was allowed.
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