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Supreme Court of India 2020-01-21 allowed

The New India Assurance Co. Ltd vs Sri Buchiyyamma Rice Mill and Anr

Bench: 2 — Dhananjaya Y Chandrachud, Ajay Rastogi

In Brief

New India Assurance Co. Ltd challenged the NCDRC's reversal of the State Commission's dismissal of a rice mill owner's insurance claim. The mill owner claimed a collision with a reversing lorry caused total collapse of the boiler unit. The insurer appointed successive surveyors who found the collapse resulted from overloading beyond capacity, not impact. The NCDRC faulted the delay in obtaining reports. The Supreme Court held that successive surveyors are permissible if justified by cogent reasons, confirmed all reports consistently showed overloading, and found no mala fides. It upheld the insurer's repudiation and dismissed the claim.

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