Delhi District Court
Klj Resources Limited vs Oriental Insurance Co Ltd on 30 July, 2025
IN THE COURT OF Sh. RAJESH KUMAR GOEL
District Judge (Commercial Court) -02,
Central, Tis Hazari
DLCT010063722023
CS (COMM.) No. 782/2023
CNR No. DLCT01-006372-2023
M/S K.L.J Resources Limited
through its Director
At: 8A, Shivaji Marg,
Moti Nagar,
New Delhi, Delhi -110 015 ......Plaintiff
Versus
Oriental Insurance Co. Ltd
Through its Divisional Manager
A-25/27, Asaf Ali Road,
New Delhi - 110 002 ......Defendant
Date of filing of suit : 10.05.2023
Date of Argument : 23.07.2025
Date of Judgment : 30.07.2025
JUDGMENT
Prologue
1. There are thirteen connected cases pending
before this Court wherein principally the parties are
the same. In all the aforesaid cases, the main dispute
RAJESH by
Digitally signed
RAJESH
between the parties is whether loss of quantity(s) in
KUMAR GOEL
KUMAR Date:
GOEL 2025.07.30
16:00:50 +0530 question is/are covered under the Insurance policy(s)KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 1 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
or not ? Further, in most of the cases, the evidence
led by the parties, arguments and contentions are
absolutely identical and similar. Rather in a few cases,
even the cross examination of the witnesses appears to
be photocopies. Further, reference to the provisions of
law and judicial authorities is also the same, therefore,
this judgment in a way, would be reproduction of the
same judgment in all the thirteen cases after making
few cosmetic changes regarding the insurance cover
notes, insurance policies, details of consignment and
surveyor reports etc.
2. Here it is pertinent to mention that in the present
case the evidence of both the parties has been recorded
by the Ld. Court Commissioner appointed by the Ld.
Predecessor of this Court. From the records of these
cases, it is evident that even those documents have
been given exhibit mark which are either dim or
absolutely dark and not legible. It was the duty of the
Ld. Court Commissioner to ask the party concerned to
provide the legible copies. During the Final
arguments, Ld. Counsel for the plaintiff was asked to
provide the legible copies of such documents, so that
the same may be considered. This court is not happy
with the way Ld. Court Commissioner has recorded
the evidence. Be that as it may, this Court tried its
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 2 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
best to consider the documents as relied upon by the
parties for adjudicating the dispute effectively
between them.
3. Vide this judgment, I shall dispose of the present
suit for recovery of Rs 1,31,61,406/-(Rs One Crore
Thirty One Lakhs Sixty One Thousand Four Hundred
and Six only) filed by the plaintiff company against
the defendant company alleging that the defendant
company has wrongfully rejected the insurance claims
of the plaintiff company.
Factual Matrix
4. The brief facts of the case, as made out from the
plaint are that the plaintiff company is stated to be a
company registered under the companies Act, 1956,
and is engaged in the trading of
Chemicals/Petrochemicals & allied items and also in
import/export of various types of chemicals/
petrochemicals; as a matter of business prudence, the
plaintiff company would insure all its consignments to
be imported against the various transit risk under ‘All
Risk Insurance Policy’.
5. It is the case of the plaintiff company that in
order to protect its Chemicals/petrochemicals to be
imported by the plaintiff company against any kind of
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 3 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
loss or damages during transit, plaintiff company had
obtained insurance covers from the defendant
company, who is stated to be a leading insurance
company of the country in public sector and also a
Body incorporated and registered under the
Companies Act,1956; defendant company issued cover
notes in respect of all the consignments by providing
cover for all kind of transit risks from Anywhere in
the world to Anywhere in India via any Indian Port on
shore tank to shore tank basis.
6. The details of the said cover notes and
insurance policies issued by the defendant company
are as under:
Cover Note No. Policy No.
308891/308918 272200/21/2012/841 & 1052
308901 & 308907 272200/21/2012/918 & 954
308894 272200/21/2013/ 873
319872 272200/21/2013/1135
311096 272200/21/2013/42
319890 272200/21/2013/1219
319920 272200/21/2014/45
319871 272200/21/2013/1134
312113 272200/21/2013/174
319926 272200/21/2014/141
308915 272200/21/2012/1039
315819 & 318834 272200/21/2013/570 & 711
312103 272200/21/2013/76
319904 272200/21/2013/1369
319927 272200/21/2014/142
298902 272200/21/2011/1090
319914 272200/21/2014/14
319873 272200/21/2013/1137
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 4 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
308801 272200/21/2012/378
315818 272200/21/2013/574
7. It is stated that all the aforesaid cover notes and
insurance policies were issued by the defendant
company in respect of the following consignments:
Invoice No. Dated Quantity Ship Name Delivery Port
9000003472 04.11.11 2100.562 Southern Budge Budge
MT Falcon
19-19/053 18.10.11 4000.00 Bow Eagle Kandla
A-IB MT
11/451 05.12.11 237.159 Lissy Kandla
MT Schutle
9000006562 28.02.13 1000.036 Golden Budge-Budge
MT dream
102 24.04.12 2459.072 DL Clover Kandla
MT
96617871 17.02.13 960.00 Agent Kandla
MT Bloom
90139274 29.04.13 995.365 Asavari Kandla
MT Voyage
9000006389 05.02.13 1000.121 Bow Fuji Kandla
MT
9000004894 21.06.12 1000.084 Chulan 2 Budge Budge
MT
100587968 24.05.13 522.992 Load Star Mumbai Port
MT Grace
106 10.12.11 2100.562 Chemroute Kandla
MT Sky
9000005718 24.10.12 1250.078 Chemroute Kandla
MT Fuji
103 29.04.12 1500.150 Golden Budge Budge
MT Dream
700028564 24.03.13 524.145 Ginga Kandla
MT Merlin
10025379 24.05.13 522.992 Load Star Kandla
MT Grace
EXP- 26.02.11 5002.890 Asian Mumbai Port
IST-2010- MT Chemi
002
9000007088 19.05.13 3140.094 M.T. Star Budge BudgeKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 5 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
MT Dream
9000006566 27.02.13 2900.004 Golden Budge Budge
MT Dream
104 09.06.11 2000.209 Ginga Kandla
MT Hawk
9000005721 24.10.12 780.336 Chemroad Kandla
MT Fuji
8. It is the further case of the plaintiff company
that the plaintiff company received short quantities of
the consignments and has suffered losses. According
to the plaintiff company, the unloading of the
consignments was done under the supervision of the
Insurance Surveyors; defendant company after
obtaining the report of first surveyor, had deputed
second surveyor for the same loss and had obtained
another report; the surveyors in their reports confirmed
the losses due to short quantities received by the
plaintiff company. The details of the Surveyors reports
are as under:
Surveyor Dated 2nd Short Claim Claim Bill Short
Report Surve Quantity Intimation Quantity
Ref. No. yor (in MT) Letter to Ins. (in MT)
report Co.
Ref.
No.
JB 22.11.2011 — 18.436 23.01.2012 23.01.2012 18.436
BODA/
CAL/03
798/11
J.B 02.11.2011 — 85.130 23.01.2012 23.01.2012 85.130
BODA/
KDL/03KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 6 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
391/11/A
A
G.P 24.02.2012 — 6.749 25.08.2012 25.08.2012 6.749
DAVE
C/12640
–
OR-18/2
012
J.B 25.03.2013 — 9.918 11.06.2013 11.06.2013 9.918
BODA/C
AL/059/
34/12
J.B 11.05.2012 — 19.527 21.02.2013 21.02.2013 19.527
BODA/
KDL/00
768/12/A
A
J.B 19.03.2013 — 8.293 28.05.2013 28.05.2013 8.293
BODA/
KDL/05
910/12/A
A
J.B 17.05.2013 — 3.422 21.06.2013 22.05.2013 3.422
BODA/
KDL/00
556/12/A
A
J.B 19.03.2013 — 10.117 22.04.2013 22.04.2013 10.117
BODA/
KDL/05
908/12/A
A
J.B 09.07.2012 — 7.756 19.02.2013 19.02.2013 7.756
BODA/C
AL/0149
6/12
SGS IN/ 07.03.2013 — 3.284 23.07.2023 23.07.2023 3.284
MUM/O
GC/201
3/00694
J.B 28.12.2011 — 11.285 23.01.2012 23.01.2012 11.285
BODA/
KDL/04
298/11A
AKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 7 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
J.B 26.11.2012 SKC 9.110 27.02.2013 27.02.2013 9.110
BODA/ 7978/
KDL/04 12-13
116/12/A
A
J.B 12.05.2012 SKC 12.235 10.10.2012 10.10.2012 12.235
BODA/C 7661/
AL/0063 12-3
3/12
J.B 24.04.2013 JC 3.899 22.06.2013 22.06.2013 3.899
BODA/ GUP
KDL/00 TA
309/12/A PLPD
A /13-
14/M-
2056 (A)/6 688 J.B 14.06.2013 SKC 4.288 22.07.2013 22.07.2013 4.288 BODA/ 8341/ KDL/00 13-14 870/13/A A J.B 13.03.2011 -- 33.120 20.08.2011 20.08.2011 33.120 BODA/ KDL/05 206/10/A A J.B 06.06.2013 SKC 18.360 30.07.2013 30.07.2013 18.360 BODA/C 8343/ AL/0085 13-14 9/13 J.B 25.03.2013 -- 18.877 11.06.2013 11.06.2013 18.877 BODA/C AL/0059 34/12 J.B 12.08.2011 -- 15.306 20.08.2011 20.08.2011 15.306 BODA/ KDL/01 915/AA/ AA J.B 26.11.2012 SKC 6.581 22.02.2013 22.02.2013 6.581 BODA/ 7979/ KDL/04 12-13 115/12/A A KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 8 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
9. The plaintiff company is said to have lodged
their claims for shortage of the said material to the
Ship’s agents also vide their letters and then to the
defendant company in respect of the aforesaid losses.
10. It is stated that the defendant company did not
settle the claims of the plaintiff company despite the
reminders having been sent by the plaintiff company
and instead rejected the claims of the plaintiff
company on the ground that under the insurance
policies, the defendant company has no liability as the
same being beyond the scope of insurance policies
taken by the plaintiff company.
11. According to the plaintiff company, the plaintiff
company had taken the insurance policies “All Risk
Policy” covering all kind of losses without any
exception, therefore, the shortage of material would
come within the scope of insurance policy and the
defendant company is under statutory obligation to
indemnify the plaintiff company to the extent of losses
which have been suffered by the plaintiff company.
12. Another set of facts, as emanate from the plaint,
is that after rejection of the claims by the defendant
company, plaintiff company had approached District
Consumer Dispute Redressal Forum, Central, Delhi (
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 9 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
hereinafter referred to as “District Forum”); the
claims of the plaintiff company were returned by the
District Forum as it was observed that it lacked
pecuniary jurisdiction; plaintiff company then
approached the National and State Commission
seeking redressal and consequently the complaints
were returned to the District Forum by the State
Commission; the entire process of trial was repeated at
the District Forum; District Forum observed that the
claims/complaints filed by the plaintiff company are
not maintainable as it was the business to business
transactions and are not covered under the Consumer
Protection Act 1986; District Forum is said to have
been apprised of by the plaintiff company that
pursuant to the judgment of National Commission, the
claims were maintainable but despite that the
complaints of the plaintiff company were returned.
13. It is also stated that the claims/complaints of the
plaintiff company were never dealt with by the District
Forum on merits, therefore, the plaintiff company is
entitled for the benefit under section 14 of the
Limitation Act for which a separate application has
been filed and the case of the plaintiff company falls
within the prescribed period of limitation and is
maintainable.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 10 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
14. It is stated that since the claims of the plaintiff
company were rejected wrongly by the defendant
company, therefore the defendant company is liable to
pay the interest @ 12% p.a from the date of
repudiation i.e. 20.03.2014 till 30-04-2023 to the
extent of Rs 68,76,523/-. According to the plaintiff
company a total amount of Rs 1,31,61,406/–( Rs
62,84,883/– as Principal + Rs 68,76,523/- as Interest)
is due and outstanding against the defendant company.
15. In compliance of the provision of section 12A of
the Commercial Courts Act, 2015, as amended to date,
the plaintiff company filed a pre-litigation mediation
application before the Delhi Legal Service Authority,
Central District, Tis Hazari Courts, Delhi, (in short
“DLSA”) against the defendant company; the DLSA
has released a non-starter report dated 11.04.2023.
16. Prior to the issuance of the summons of the
present suit, the plaintiff company moved an
application under order VI rule 17 r/w 151 CPC
seeking amendment in the plaint. It was submitted on
behalf of the plaintiff company that after filing the
present suit, it was noticed that in para 23 of the plaint,
an error has crept in as due to inadvertence some of
the words were omitted and averments about clubbing
of claims in the present suit remained incomplete. By
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 11 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
way of the said application, the plaintiff company
sought to amend the para 23 of the plaint. That
application was allowed by the Ld. Predecessor of this
Court vide order dated 3.6.2023 and the amended
plaint was directed to be taken on record.
17. Thereafter, Summons of the suit were issued to
the defendant company. The defendant company
made the appearance and has filed the written
statement.
18. In the written statement, the defendant company
has taken certain preliminary objections to the effect
that this court does not have territorial and pecuniary
jurisdiction;the present suit is liable to be dismissed as
the plaintiff company has clubbed separate claims
arising out of separate policies having different
surveyors reports and different assessment of losses;
the suit of the plaintiff company is barred by
limitation as the losses were reported by the plaintiff
company and came to be rejected by the defendant
company on 20.03.2014, whereas the present suit was
filed in the year 2023; the present suit is bad for non-
joinder of necessary and proper party and is liable to
be rejected as shipping agent should have been made a
party etc.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 12 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
19. On the merits, the defendant company has not
denied that the plaintiff company had taken the
insurance policies in question but the stand of the
defendant company is that the claims of the plaintiff
company are not payable as the alleged losses of
quantity reported by the plaintiff company neither
come within the scope of coverage under the
insurance policies nor payable under the terms and
conditions of the Marine Cargo Single Voyage (Sea)
Policy-Institute Cargo Clauses (A). According to the
defendant company, there was no evidence of any
insured marine peril activated when the cargo was
pumped from shore tank to ship tank at the time of
loading and the ship tank to the shore tank at the time
of discharge; defendant company has alleged that
shortage was not due to any insured peril and hence
the defendant company has no liability under the
insurance policy, therefore the claims of the plaintiff
company were rejected.
20. It is the further stand of the defendant company
that the Marine Cargo Policy makes it crystal clear
that company insures against loss or damage or
expenses subject to clauses, endorsements, conditions
and warranties mentioned in the schedule and attached
thereto which included Institute Cargo Clause-A. By
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 13 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
referring to clause 4.2 of the Institute Cargo Clause A,
it is stated that in no case shall this insurance cover
for ordinary leakage, ordinary losses, weight or
volume and ordinary wear and tear of the subject
matter insured.
21. The defendant company has also referred to the
reports of the surveyors and it was stated that the
cause of shortage is attributed to the transfer of goods
from shore tank to the ship’s tank at the port at the
time of loading and discharge. It is also stated that the
alleged shortages, as reported by the plaintiff
company, are a normal phenomenon in transit of
chemicals by ship and the actual shortage would be
found to be an ordinary leakage or ordinary loss in
weight or volume, which is as per the nature of the
subject matter insured. Hence the present suit of the
plaintiff company is liable to be rejected.
22. The defendant company has filed an affidavit of
admission and denial of the documents along with the
written statement.
23. Thereafter, the plaintiff company filed the
rejoinder to the written statement of the defendant
company denying the allegations made by the
defendant company and reiterated the facts as
mentioned in the plaint . Along with the rejoinder , the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 14 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
plaintiff company has also filed the statement of
admission and denial of documents.
24. After completion of pleadings, vide order dated
17.10.2023, following issues were framed by the Ld.
Predecessor of this Court:-
1. Whether the present suit is not maintainable being
barred by Limitation, as alleged by the defendant in the
written statement ( Para 3-Preliminary Objections) ?
(OPD)
2. Whether the suit is bad for non-joinder of necessary
parties, as alleged by the defendant in the written
statement ( Para 4- Preliminary Objections)? (OPD)
3. Whether the claims of the plaintiff were rightly
repudiated by the defendant, as alleged by the defendant
in the written statement? (OPD)
4. Whether the present suit is not maintainable the
plaintiff having clubbed together separate claims arising
out of the separate policies having different survey
reports and different assessment of loss, as alleged by
the defendants in the written statement ( Para 2-
Preliminary Objection) ? (OPD)
5. Whether the plaintiff is entitled to recovery of the
principal amount, as asked for in plaint? (OPP)
6. In case if issue no. 5 is decided in affirmative, whether
the plaintiff is entitled for any interest, as asked for in
the plaint? (OPP).
7. Relief
25. Vide order dated 23.11.2023, the Schedule of
Second Case Management hearing was fixed by the
Ld. Predecessor of this court and Ld. Court
Commissioner was appointed to record the evidence of
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 15 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
both the parties.
26. The Ld. Court Commissioner has already
submitted her report to this court.
27. In support of its case, the plaintiff company has
examined two witnesses i.e. PW1 Ashok Kumar
Maharshi, an officer in the plaintiff company and
PW2 Rohit Kumar, Sr. Assistant from District Forum.
No other witness was examined by the plaintiff
company and the plaintiff evidence was closed.
28. The defendant company has examined one Smt
Renuka Chaudhary, Manager, s DW1, who has filed
her evidence by way of affidavit and Sh. S.K
Chakraborty, Surveyor as DW2. No other witness was
examined by the defendant company and the
defendant’s evidence was closed.
29. PW1 Ashok Kumar Maharshi has deposed on
the lines of the averments made in the plaint in his
evidence filed by way of affidavit Ex.PW1/A. He also
relied upon the documents i.e Board Resolution
ExPW1/1, Copy of Memorandum and Articles of
Association of the plaintiff company ExPW1/2 (colly),
Copy of Final Order dated 27.03.2017 of the
Consumer Complaint filed by plaintiff Ex PW1/3,
Copy of order dated 24.07.2017 of NCDRC Delhi Ex
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 16 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
PW1/4, Copy of Final Order dated 11.01.2018 of the
Consumer Complaint filed by plaintiff Ex PW1/5,
Copy of Final Order dated 12.01.2018 of the
Consumer Complaint filed by plaintiff Ex PW1/6,
Copy of order dated 15.11.2018 of State Commission
Ex PW1/7, Copy of order dated 18.12.2018 &
01.02.2019 of State Commission Delhi Ex PW1/8,
Copy of order dated 05.04.2019 of State Commission
Ex PW1/9, Copy of Order dated 09.02.2022 of the
Consumer District Commission Ex PW1/10, Copy of
Complaint with supporting affidavit in Policy No.
272200/21/2012/841 & 1052 Filed By Plaintiff Co.
before Consumer Forum, Central, Delhi Ex PW1/11,
Copy of Board Resolution dated 02.09.2014 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/12, Copy of Insurance Cover note no.
3088912 Ex PW1/13, Copy of Insurance Policy
272200/21/2012/841 Ex PW1/14, Copy of Insurance
Cover note no. 3088918 Ex PW1/15, Copy of
Insurance Policy 272200/21/2012/1052 Ex PW1/16,
Copy of Invoice No. 9000003472 Dated 04.11.2011
Ex PW1/17, Copy of Bill of Lading No. B/L No.
8000003482 Dated 04.11.2011 Ex PW1/18, Copy of
warehouse bill of entry Ex PW1/19, Copy of J.B.
Boda Surveyors Survey Report dated 22.11.2011 Ex
PW1/20, Copy of Letter dt 12.01.2012 sent by plaintiff
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 17 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
to Atlantic shipping agency Ex PW1/21, Copy of
Letter dt 23.01.2012 along with claim bill sent by
plaintiff to defendant Ex PW1/22, Copy of Letter dt
13.04.2012 & email dated 10.03.2014 sent by plaintiff
to defendant Ex PW1/23, Copy of repudiation letter dt.
20.03.2014 received by the plaintiff from the
defendant Ex PW1/24, Copy of Letter dt 28.03.2014
and 08.04.2014 sent by plaintiff to defendant Ex
PW1/25, Copy of Written Statement filed by
defendant before consumer forum (1) Ex PW1/26,
Copy of Order dated 09.02.2022 of the Consumer
District Commission Ex PW1/27, Copy of Complaint
with supporting affidavit in Policy No.
272200/21/2012/918 & 954 Filed By Plaintiff Co.
before Consumer Forum, Central, Delhi Ex PW1/28,
Copy of Board Resolution dated 02.09.2014 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/29, Copy of Letter dated 12.09.2011 sent by
plaintiff to Defendant Ex PW1/30, Copy of Insurance
Cover note no. 308901 Ex PW1/31, Copy of Insurance
Policy 272200/21/2012/918 Ex PW1/32, Copy of
Insurance Cover note no. 308907 Ex PW1/33, Copy of
Insurance Policy 272200/21/2012/954 Ex PW1/34,
Copy of Invoice No. 19-19/053A-1B & 19-19/0539-
1B Dated 18.10.2011Ex PW1/35, Copy of Bill of
Lading No. B/L No. BE181011-ASY08 &
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 18 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
BE181011-ASY09 Dated 18.10.2011 Ex PW1/36,
Copy of warehouse bill of entry 18.10.2011 Ex
PW1/37, Copy of J.B. Boda Surveyors Survey Report
dated 02.11.2011 Ex PW1/38, Copy of Letter dt
12.01.2012 sent by plaintiff to Intra Trade(Gujarat)
shipping agency Ex PW1/39 , Copy of Letter dt
23.01.2012 along with claim bill sent by plaintiff to
defendant Ex PW1/40, Copy of Letter dt 13.04.2012
sent by plaintiff to defendant , Ex PW1/41, Copy of
repudiation letter dt. 20.03.2014 received by the
plaintiff from the defendant Ex PW1/42, Copy of
Letter dt 08.04.2014 sent by plaintiff to defendant Ex
PW1/43, Copy of Written Statement filed by
defendant before consumer forum (2) Ex PW1/44,
Copy of Order dated 09.02.2022 of the Consumer
District Commission Ex PW1/45, Copy of Complaint
with supporting affidavit in Policy No.
272200/21/2012/873 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/46, Copy of
Board Resolution dated 14.08.2015 Filed By Plaintiff
Co. before Consumer Forum, Central, Delhi Ex
PW1/47, Copy of Insurance Cover note no. 308894 Ex
PW1/48, Copy of Insurance Policy
272200/21/2012/873 Ex PW1/49 , Copy of Invoice
No. 11/451 Dated 05.12.2011Ex PW1/50, Copy of Bill
of Lading No. B/L No. KWSWK/KDL/F0001 Dated
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 19 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
10.12.2011 Ex PW1/51, Copy of warehouse bill of
entry 07.12.2011 Ex PW1/52, Copy of Letter dt
05.01.2012 sent by plaintiff to M/S G.P. Dave & Sons
Surveyor Ex PW1/53, Copy of J.B. Boda Surveyors
Survey Report dated 07.12.2011 & survey report of
M/S G.P. Dave & Sons Surveyor Ex PW1/54, Copy of
Letter dt 24.08.2012 sent by plaintiff to Caravel
Logistics Ex PW1/55, Copy of Letter dt 25.08.2012
along with claim bill sent by plaintiff to defendant Ex
PW1/56, Copy of Letter dt 19.03.2014 sent by plaintiff
to defendant Ex PW1/57, Copy of repudiation letter dt.
20.03.2014 received by the plaintiff from the
defendant Ex PW1/58, Copy of Letter dt 28.03.2014,
29.07.2014 sent by plaintiff to defendant Ex PW1/59,
Copy of Written Statement filed by defendant before
consumer forum (3) Ex PW1/60 , Copy of Order dated
09.02.2022 of the Consumer District Commission Ex
PW1/61, Copy of Complaint with supporting affidavit
in Policy No. 272200/21/2013/1135 Filed By Plaintiff
Co. before Consumer Forum, Central, Delhi Ex
PW1/62, Copy of Board Resolution dated 14.08.2015
Filed By Plaintiff Co. before Consumer Forum,
Central, Delhi Ex PW1/63, Copy of Insurance Cover
note no. 319872 Ex PW1/64 Copy of Insurance Policy
272200/21/2013/1135 Ex PW1/65, Copy of Invoice
No. 9000006562 Dated 28.02.2013, Ex PW1/66, Copy
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 20 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
of Bill of Lading No. B/L No. 8000006264 Dated
28.02.2013 Ex PW1/67, Copy of warehouse bill of
entry 28.02.2013Ex PW1/68, Copy of J.B. Boda
Surveyors Survey Report dated 25.03.2013 & survey
report of S.K. Chakraborty Surveyor dated 10.05.2013
Ex PW1/69, Copy of Letter dt 11.06.2013 sent by
plaintiff to Deblines Pvt. Ltd , Ex PW1/70 , Copy of
Letter dt 11.06.2013 along with claim bill sent by
plaintiff to defendant Ex PW1/71, Copy of Letter
dated 19.03.2014 sent by plaintiff to defendant Ex
PW1/72, Copy of repudiation letter dated 20.03.2014
received by the plaintiff from the defendant Ex
PW1/73, Copy of Letter dated 28.03.2014, 09.04.2014
& 29.07.2014 sent by plaintiff to defendant Ex
PW1/74, Copy of certified copy of Written Statement
filed by defendant before consumer forum (4) Ex
PW1/75, Copy of Order dated 09.02.2022 of the
Consumer District Commission Ex PW1/76, Copy of
Complaint with supporting affidavit in Policy No.
272200/21/2013/42 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/77, Copy of
Board Resolution dated 02.09.2014 Filed By Plaintiff
Co. before Consumer Forum, Central, Delhi Ex
PW1/78, Copy of Insurance Cover note no. 311096 Ex
PW1/79, Copy of Insurance Policy
272200/21/2013/42 Ex PW1/80, Copy of Invoice No.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 21 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
102 Dated 24.04.2012 ExPW1/81, Copy of Bill of
Lading No. B/L No. 8000004425 Dated 15.04.2012
Ex PW1/82, Copy of Invoice No. FRT-
DAECO120415 Dated 15.04.2012 Ex PW1/83, Copy
of warehouse bill of entry 15.04.2012 Ex PW1/84,
Copy of Letter dt 07.05.2012 sent by plaintiff to
defendant Ex PW1/85, Copy of J.B. Boda Surveyors
Survey Report dated 11.05.2012 & Turn report of
Kesar Terminals & Infrastructure Ltd. Dated
07.05.2012 Ex PW1/86, Copy of G.P. Dave & Sons
Survey Report dated 04.05.2012 Ex PW1/87, Copy of
Letter dated 29.05.2012 sent by plaintiff to GAC
Shipping Pvt. Ltd. Ex PW1/88 , Copy of Letter dated
21.02.2013 along with claim bill sent by plaintiff to
defendant Ex PW1/89, Copy of Letter dated
16.07.2012 sent by defendant to plaintiff Ex PW1/90,
Copy of Letter dated 09.07.2013 sent by plaintiff to
defendant Ex PW1/91, Copy of repudiation letter
dated 20.03.2014 received by the plaintiff from the
defendant Ex PW1/92, Copy of Letter dated
28.03.2014, 08.04.2014 & 29.07.2014 sent by plaintiff
to defendant Ex PW1/93, Copy of Written Statement
filed by defendant before consumer forum (5) Ex
PW1/94, Copy of Order dated 09.02.2022 of the
Consumer District Commission Ex PW1/95, Copy of
Complaint with supporting affidavit in Policy No.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 22 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
272200/21/2013/1219 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/96, Copy of
Board Resolution dated 14.08.2015 Filed By Plaintiff
Co. before Consumer Forum, Central, Delhi Ex
PW1/97, Copy of Insurance Cover note no. 319890
Ex PW1/98, Copy of Insurance Policy
272200/21/2013/1219 Ex PW1/99, Copy of Invoice
No. 96617871 Dated 17.02.2013 Ex PW1/100, Copy
of Bill of Lading No. B/L No. MP1302114-12 Dated
17.02.2013 Ex PW1/101, Copy of warehouse bill of
entry 17.02.2013 Ex PW1/102, Copy of email dated
16.03.2013 & Letter dated 16.03.2013 sent by plaintiff
to defendant Ex PW1/103, Copy of J.B. Boda
Surveyors Survey Report dated 19.03.2013 & S.K.
Chakraborty dated 30.04.2013 Ex PW1/104, Copy of
Letter dated 27.05.2013 sent by plaintiff to GAC
Shipping Pvt. Ltd. Ex PW1/105 , Copy of Letter dated
28.05.2013 along with claim bill sent by plaintiff to
defendant Ex PW1/106, Copy of Letter dated
19.03.2013 sent by plaintiff to defendant Ex PW1/107,
Copy of repudiation letter dated 20.03.2014 received
by the plaintiff from the defendant Ex PW1/108,
Copy of Letter dated 28.03.2014, 08.04.2014 &
29.07.2014 sent by plaintiff to defendant Ex PW1/109,
Copy of Written Statement filed by defendant before
consumer forum (6) Ex PW1/110, Copy of Order
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 23 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
dated 09.02.2022 of the Consumer District
Commission Ex PW1/111, Copy of Complaint with
supporting affidavit in Policy No. 272200/21/2014/45
Filed By Plaintiff Co. before Consumer Forum,
Central, Delhi Ex PW1/112, Copy of Board
Resolution dated 14.08.2015 Filed By Plaintiff Co.
before Consumer Forum, Central, Delhi Ex PW1/113,
Copy of Insurance Cover note no. 319920 Ex
PW1/114, Copy of Insurance Policy
272200/21/2014/45 Ex PW1/115, Copy of Invoice No.
90139274 Dated 29.04.2013 Ex PW1/116, Copy of
Bill of Lading No. Q2/13/20/06 Dated 29.04.2013 Ex
PW1/117, Copy of warehouse bill of entry 29.04.2013
Ex PW1/118, Copy of J.B. Boda Surveyors Survey
Report dated 17.05.2013 Ex PW1/119, Copy of Letter
dated 21.06.2013 sent by plaintiff to Atlantic Shipping
Pvt. Ltd. Ex PW1/120, Copy of Letter dated
21.06.2013 along with claim bill sent by plaintiff to
defendant Ex PW1/121, Copy of Letter dated
19.03.2014 sent by plaintiff to defendant Ex PW1/122,
Copy of repudiation letter dated 20.03.2014 received
by the plaintiff from the defendant Ex PW1/123, Copy
of Letter dated 28.03.2014, 08.04.2014 sent by
plaintiff to defendant Ex PW1/124, Copy of certified
copy of Written Statement filed by defendant before
consumer forum (7) Ex PW1/125, Copy of Order
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 24 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
dated 09.02.2022 of the Consumer District
Commission Ex PW1/126, Copy of Complaint with
supporting affidavit in Policy No.
272200/21/2013/1134 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/127, Copy
of Board Resolution dated 14.08.2015 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/128, Copy of Insurance Cover note no.
319871 Ex PW1/129, Copy of Insurance Policy
272200/21/2013/1134 Ex PW1/130, Copy of Invoice
No. 9000006389 Dated 05.02.2013 Ex PW1/131,
Copy of Bill of Lading No. 8000006150 Dated
05.02.2013 Ex PW1/132, Copy of warehouse bill of
entry 05.02.2013 Ex PW1/133, Copy of J.B. Boda
Surveyors Survey Report dated 19.03.2013 & S.K.
Chakarborty survey report dated 10.04.2013 Ex
PW1/134, Copy of Letter dated 22.04.2013 sent by
plaintiff to Intra Trade(Gujarat) shipping agency Ex
PW1/135, Copy of Letter dated 22.04.2013 along with
claim bill sent by plaintiff to defendant Ex PW1/136,
Copy of email dated 21.05.2013 and letter dated
09.07.2013 and 19.03.2014 sent by plaintiff to
defendant Ex PW1/137, Copy of repudiation letter
dated 20.03.2014 received by the plaintiff from the
defendant Ex PW1/138, Copy of Letter dated
28.03.2014, 08.04.2014 sent by plaintiff to defendant
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 25 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Ex PW1/139, Copy of certified copy of Written
Statement filed by defendant before consumer forum
(8) Ex PW1/140, Copy of Order dated 09.02.2022 of
the Consumer District Commission Ex PW1/141,
Copy of Complaint with supporting affidavit in Policy
No. 272200/21/2013/174 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/142, Copy
of Board Resolution dated 02.09.2014 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/143, Copy of Insurance Cover note no.
312113 Ex PW1/144, Copy of Insurance Policy
272200/21/2013/174 Ex PW1/145, Copy of Invoice
No. 9000004894 Dated 21.06.2012 Ex PW1/146,
Copy of Bill of Lading No. 8000004856 Dated
21.06.2012 Ex PW1/147, Copy of Invoice No.
MVC/2012-001/AZSM/CH/2012-0013 Dated
27.06.2012 Ex PW1/148, Copy of warehouse bill of
entry 21.04.2012 Ex PW1/149, Copy of Letter dated
04.07.2012 sent by plaintiff to defendant Ex PW1/150,
Copy of J.B. Boda Surveyors Survey Report dated
09.07.2012 Ex PW1/151, Copy of Letter dated
19.02.2013 sent by plaintiff to GAC shipping agency
Ex PW1/152, Copy of Letter dated 19.02.2013 along
with claim bill & Form sent by plaintiff to defendant
Ex PW1/153, Copy of letter dated 31.03.2013 sent by
defendant to plaintiff Ex PW1/154, Copy of letter
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 26 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
dated 09.07.2013 and 19.03.2014 sent by plaintiff to
defendant Ex PW1/155, Copy of repudiation letter
dated 20.03.2014 received by the plaintiff from the
defendant Ex PW1/156, Copy of Letter dated
28.03.2014, 09.04.2014 and 29.07.2014 sent by
plaintiff to defendant, Ex PW1/157, Copy of Written
Statement filed by defendant before consumer forum
(9) Ex PW1/158, Copy of Order dated 09.02.2022 of
the Consumer District Commission Ex PW1/159,
Copy of Complaint with supporting affidavit in Policy
No. 272200/21/2014/141 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/160, Copy
of Board Resolution dated 14.08.2015 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/161, Copy of Insurance Cover note no.
319926 Ex PW1/162, Copy of Insurance Policy
272200/21/2014/141 Ex PW1/163, Copy of Invoice
No. 100587968 Dated 24.05.2013 Ex PW1/164, Copy
of Bill of Lading No. 007 Dated 24.05.2013 Ex
PW1/165, Copy of warehouse bill of entry 24.05.2013
Ex PW1/166, Copy of SGS Survey Report dated
07.03.2013 Ex PW1/167, Copy of Letter dated
23.07.2013 sent by plaintiff to GAC shipping agency
Ex PW1/168, Copy of Letter dated 23.07.2013 along
with claim bill & Form sent by plaintiff to defendant
Ex PW1/169, Copy of letter dated 19.03.2014 sent by
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 27 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
plaintiff to defendant Ex PW1/170, Copy of
repudiation letter dated 20.03.2014 received by the
plaintiff from the defendant Ex PW1/171, Copy of
Letter dated 28.03.2014, 09.04.2014 sent by plaintiff
to defendant Ex PW1/172, Copy of Written Statement
filed by defendant before consumer forum (10) Ex
PW1/173, Copy of Order dated 09.02.2022 of the
Consumer District Commission Ex PW1/174 , Copy
of Complaint with supporting affidavit in Policy No.
272200/21/2012/1039 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/175, Copy
of Board Resolution dated 14.08.2015 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/176, Copy of Insurance Cover note no.
308915 Ex PW1/177, Copy of Insurance Policy
272200/21/2012/1039 Ex PW1/178, Copy of Invoice
No. 106 Dated 10.12.2011 Ex PW1/179, Copy of Bill
of Lading No. 8000003659 Dated 06.12.2011 Ex
PW1/180, Copy of warehouse bill of entry 06.12.2011
Ex PW1/181, Copy of J.B. Boda Survey Report dated
28.02.2011 Ex PW1/182, Copy of Letter dated
12.01.2012 sent by plaintiff to J.M. Baxi & co.
shipping agent Ex PW1/183, Copy of Letter dated
23.01.2012 along with claim bill & form sent by
plaintiff to defendant Ex PW1/184, Copy of
repudiation letter dated 20.03.2014 received by the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 28 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
plaintiff from the defendant Ex PW1/185, Copy of
Letter dated 28.03.2014, 08.04.2014 and 29.07.2014
sent by plaintiff to defendant Ex PW1/186, Copy of
Written Statement filed by defendant before consumer
forum (11) Ex PW1/187, Copy of Order dated
09.02.2022 of the Consumer District Commission Ex
PW1/188, Copy of Complaint with supporting
affidavit in Policy No. 272200/21/2013/570 & 711
Filed By Plaintiff Co. before Consumer Forum,
Central, Delhi Ex PW1/189, Copy of Board
Resolution dated 14.08.2015 Filed By Plaintiff Co.
before Consumer Forum, Central, Delhi Ex PW1/190,
Copy of Insurance Cover note no. 315819 Ex
PW1/191, Copy of Insurance Policy
272200/21/2013/570 Ex PW1/192, Copy of Insurance
Cover note no. 318834 Ex PW1/193, Copy of
Insurance Policy 272200/21/2013/711 Ex PW1/194,
Copy of Invoice No. 9000005718 Dated 24.10.2012
Ex PW1/195, Copy of Bill of Lading No. 8000005538
Dated 24.10.2012 Ex PW1/196, Copy of warehouse
bill of entry 24.10.2012 Ex PW1/197, Copy of email
dated 12.11.2012 and letter dated 12.11.2012 sent by
plaintiff to defendant Ex PW1/198, Copy of J.B. Boda
Survey Report dated 26.11.2012 & S.K. Chakraborty
survey report dated 04.12.2012 Ex PW1/199 , Copy
of Letter dated 27.02.2013 sent by plaintiff to Atlantic
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 29 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
shipping Ex PW1/200, Copy of Letter dated
27.02.2013 along with claim bill & form sent by
plaintiff to defendant Ex PW1/201, Copy of Letter
dated 31.03.2013 sent by defendant to plaintiff Ex
PW1/202, Copy of Letter dated 09.07.2013 sent by
plaintiff to defendant Ex PW1/203, Copy of
repudiation letter dated 20.03.2014 received by the
plaintiff from the defendant Ex PW1/204, Copy of
Letter dated 28.03.2014, 08.04.2014 and 29.07.2014
sent by plaintiff to defendant Ex PW1/205, Copy of
Written Statement filed by defendant before consumer
forum (12) Ex PW1/206, Copy of Order dated
09.02.2022 of the Consumer District Commission Ex
PW1/207, Copy of Complaint with supporting
affidavit in Policy No. 272200/21/2013/76 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/208, Copy of Board Resolution dated
02.09.2014 Filed By Plaintiff Co. before Consumer
Forum, Central, Delhi Ex PW1/209, Copy of
Insurance Cover note no. 312103 Ex PW1/210, Copy
of Insurance Policy 272200/21/2013/76 Ex PW1/211,
Copy of Invoice No. 103 Dated 28.04.2012 Ex
PW1/212, Copy of Bill of Lading No. 8000004486
Dated 25.04.2012 Ex PW1/213, Copy of debit note
No. MCLC12-170 Dated 26.04.2012 Ex PW1/214,
Copy of warehouse bill of entry 25.04.2012 Ex
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 30 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
PW1/215, Copy of letter dated 15.05.2012 sent by
plaintiff to defendant Ex PW1/216, Copy of J.B. Boda
Survey Report dated 22.05.2012 & S.K. Chakraborty
survey report dated 10.09.2012 Ex PW1/217, Copy of
Letter dated 08.10.2012 sent by plaintiff to J.M. Baxi
& Co. shipping agent Ex PW1/218, Copy of Letter
dated 10.10.2012 along with claim bill & form sent by
plaintiff to defendant Ex PW1/219, Copy of Letter
dated 31.03.2013 sent by defendant to plaintiff Ex
PW1/220, Copy of Letter dated 09.07.2013 &
19.03.2014 sent by plaintiff to defendant Ex PW1/221,
Copy of repudiation letter dated 20.03.2014 received
by the plaintiff from the defendant Ex PW1/222, Copy
of Letter dated 28.03.2014, 08.04.2014 and
29.07.2014 sent by plaintiff to defendant Ex PW1/223,
Copy of Written Statement filed by defendant before
consumer forum (13) Ex PW1/224, Copy of Order
dated 09.02.2022 of the Consumer District
Commission Ex PW1/225, Copy of Complaint with
supporting affidavit in Policy No.
272200/21/2013/1369 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/226, Copy
of Board Resolution dated 14.08.2015 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/227, Copy of Insurance Cover note no.
319904 Ex PW1/228 , Copy of Insurance Policy
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 31 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
272200/21/2013/1369 Ex PW1/229, Copy of Invoice
No. 700028564 Dated 24.03.2013 Ex PW1/230, Copy
of Bill of Lading No. MRL130KRTKDL02 Dated
24.03.2013 Ex PW1/231, Copy of warehouse bill of
entry 24.03.2013 Ex PW1/232, Copy of letter dated
18.04.2013 sent by plaintiff to defendant Ex
PW1/233 , Copy of J.B. Boda Survey Report dated
24.04.2013 & J.C. Gupta survey report dated
07.05.2013 Ex PW1/234, Copy of Letter dated
22.06.2013 sent by plaintiff to GAC shipping Ex
PW1/235, Copy of Letter dated 22.06.2013 along with
claim bill & form sent by plaintiff to defendant Ex
PW1/236, Copy of Letter dated 19.03.2014 sent by
plaintiff to defendant Ex PW1/237, Copy of
repudiation letter dated 20.03.2014 received by the
plaintiff from the defendant Ex PW1/238, Copy of
Letter dated 28.03.2014, 09.04.2014 and 29.07.2014
sent by plaintiff to defendant Ex PW1/239, Copy of
certified copy of Written Statement filed by defendant
before consumer forum (14) Ex PW1/240, Copy of
Order dated 09.02.2022 of the Consumer District
Commission Ex PW1/241, Copy of Complaint with
supporting affidavit in Policy No.
272200/21/2014/142 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/242, Copy
of Board Resolution dated 14.08.2015 Filed By
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 32 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/243, Copy of Insurance Cover note no.
319927 Ex PW1/244, Copy of Insurance Policy
272200/21/2014/142 Ex PW1/245, Copy of Invoice
No. 100587967 Dated 24.05.2013 Ex PW1/246, Copy
of Bill of Lading No. 008 Dated 24.05.2013 Ex
PW1/247, Copy of warehouse bill of entry 24.05.2013
Ex PW1/248, Copy of J.B. Boda Survey Report dated
14.06.2013 & S.K. Chakraborty survey report dated
10.07.2013 Ex PW1/249, Copy of Letter dated
23.07.2013 sent by plaintiff to GAC shipping Ex
PW1/250, Copy of Letter dated 22.07.2013 along with
claim bill & form sent by plaintiff to defendant Ex
PW1/251, Copy of Letter dated 19.03.2014 sent by
plaintiff to defendant Ex PW1/252, Copy of
repudiation letter dated 20.03.2014 received by the
plaintiff from the defendant Ex PW1/253, Copy of
Letter dated 28.03.2014, 09.04.2014 and 29.07.2014
sent by plaintiff to defendant Ex PW1/254, Copy of
certified copy of Written Statement filed by defendant
before consumer forum (15) Ex PW1/255, Copy of
Order dated 09.02.2022 of the Consumer District
Commission Ex PW1/256, Copy of Complaint with
supporting affidavit in Policy No.
272200/21/2011/1090 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/257, Copy
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 33 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
of Board Resolution dated 02.09.2014 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/258, Copy of Insurance Cover note no.
298902 Ex PW1/259, Copy of Insurance Policy
272200/21/2011/1090 Ex PW1/260, Copy of Invoice
No. EXP-I.S.T.2010-002 Dated 26.02.2011 Ex
PW1/261, Copy of Bill of Lading No. ANC1101-
BSMD01 to 05 Dated 26.02.2011 Ex PW1/262, Copy
of warehouse bill of entry Ex PW1/263, Copy of
Letter dated 09.03.2011 sent by plaintiff to defendant
Ex PW1/264, Copy of J.B. Boda Survey Report dated
10.03.2011 Ex PW1/265, Copy of Letter dated
16.08.2011 sent by plaintiff to Atlantic shipping Ex
PW1/266, Copy of claim form with Letter dated
20.08.2011 along with claim bill sent by plaintiff to
defendant Ex PW1/267, Copy of Letter dated
13.04.2012 & email dated 10.03.2014 along with List
of lodges claims sent by plaintiff to defendant Ex
PW1/268, Copy of repudiation letter dated 20.03.2014
received by the plaintiff from the defendant Ex
PW1/269, Copy of Letter dated 28.03.2014,
08.04.2014 sent by plaintiff to defendant Ex PW1/270,
Copy of Written Statement filed by defendant before
consumer forum (16) Ex PW1/271, Copy of Order
dated 09.02.2022 of the Consumer District
Commission Ex PW1/272, Copy of Complaint with
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 34 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
supporting affidavit in Policy No. 272200/21/2014/14
Filed By Plaintiff Co. before Consumer Forum,
Central, Delhi Ex PW1/273, Copy of Board
Resolution dated 14.08.2015 Filed By Plaintiff Co.
before Consumer Forum, Central, Delhi Ex PW1/274,
Copy of Insurance Cover note no. 319914 Ex
PW1/275, Copy of Insurance Policy
272200/21/2014/14 Ex PW1/276, Copy of Invoice
No. 9000007088 Dated 19.05.2013 Ex PW1/277,
Copy of Bill of Lading No. 8000006777 Dated
19.05.2013 Ex PW1/278, Copy of warehouse bill of
entry Ex PW1/279, Copy of J.B. Boda Survey Report
dated 06.06.2013 & S.K. Chakraborty survey report
dated 10.07.2013 Ex PW1/280, Copy of Letter dated
01.07.2013 sent by plaintiff to Deblines Pvt. Ltd.Ex
PW1/281, Copy of Letter dated 20.07.2013 along with
claim bill and claim form sent by plaintiff to defendant
Ex PW1/282, Copy of Letter dated 19.03.2014 sent by
plaintiff to defendant Ex PW1/283 , Copy of
repudiation letter dated 20.03.2014 received by the
plaintiff from the defendant Ex PW1/284 , Copy of
Letter dated 28.03.2014, 08.04.2014 and 29.07.2014
sent by plaintiff to defendant Ex PW1/285, Copy of
Written Statement filed by defendant before consumer
forum (17) Ex PW1/286, Copy of Order dated
09.02.2022 of the Consumer District Commission Ex
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 35 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
PW1/287 , Copy of Complaint with supporting
affidavit in Policy No. 272200/21/2013/1137 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/288, Copy of Board Resolution dated
14.08.2015 Filed By Plaintiff Co. before Consumer
Forum, Central, Delhi Ex PW1/289, Copy of
Insurance Cover note no. 319873 Ex PW1/290, Copy
of Insurance Policy 272200/21/2013/1137 Ex
PW1/291, Copy of Invoice No. 9000006566 Dated
27.02.2013 Ex PW1/292, Copy of Bill of Lading No.
8000006263 Dated 27.02.2013 Ex PW1/293, Copy of
warehouse bill of entry Ex PW1/294, Copy of J.B.
Boda Survey Report dated 25.03.2013 Ex PW1/295,
Copy of Letter dated 11.06.2013 sent by plaintiff to
Deblines Pvt. Ltd. Ex PW1/296, Copy of Letter dated
11.06.2013 along with claim bill and claim form sent
by plaintiff to defendant Ex PW1/297, Copy of Letter
dated 19.03.2014 sent by plaintiff to defendant Ex
PW1/298, Copy of repudiation letter dated 20.03.2014
received by the plaintiff from the defendant Ex
PW1/299, Copy of Letter dated 28.03.2014,
08.04.2014 and 29.07.2014 sent by plaintiff to
defendant Ex PW1/300, Copy of certified copy of
Written Statement filed by defendant before consumer
forum (18) Ex PW1/301, Copy of Order dated
09.02.2022 of the Consumer District Commission Ex
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 36 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
PW1/302, Copy of Complaint with supporting
affidavit in Policy No. 272200/21/2012/378 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/303, Copy of Board Resolution dated
02.09.2014 Filed By Plaintiff Co. before Consumer
Forum, Central, Delhi Ex PW1/304, Copy of Letter
dated 15.06.2011 & 13.06.2011 sent by plaintiff to
defendant Ex PW1/305, Copy of Insurance Cover note
no. 308801Ex PW1/306 , Copy of Insurance Policy
272200/21/2012/378 Ex PW1/307 , Copy of Invoice
No. 104 Dated 09.06.2011 Ex PW1/308, Copy of Bill
of Lading No. 8000002900 Dated 03.07.2011 Ex
PW1/309, Copy of warehouse bill of entry Ex
PW1/310, Copy of Letter dated 08.08.2011 sent by
plaintiff to defendant Ex PW1/311, Copy of J.B. Boda
Survey Report dated 12.08.2011 Ex PW1/312, Copy
of Letter dated 16.08.2011 sent by plaintiff to GAC
Shipping Pvt. Ltd. Ex PW1/313 , Copy of claim form
with Letter dated 20.08.2011 along with claim bill
sent by plaintiff to defendant Ex PW1/314 , Copy of
Letter dated 13.04.2012 and email dated 10.03.2014
sent by plaintiff to defendant Ex PW1/315 , Copy of
repudiation letter dated 20.03.2014 received by the
plaintiff from the defendant Ex PW1/316, Copy of
Letter dated 28.03.2014, 08.04.2014 sent by plaintiff
to defendant Ex PW1/317, Copy of Written Statement
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 37 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
filed by defendant before consumer forum (19) Ex
PW1/318, Copy of Order dated 09.02.2022 of the
Consumer District Commission Ex PW1/319, Copy of
Complaint with supporting affidavit in Policy No.
272200/21/2012/574 Filed By Plaintiff Co. before
Consumer Forum, Central, Delhi Ex PW1/320 , Copy
of Board Resolution dated 14.08.2015 Filed By
Plaintiff Co. before Consumer Forum, Central, Delhi
Ex PW1/321, Copy of Insurance Cover note no.
315818 Ex PW1/322, Copy of Insurance Policy
272200/21/2013/574 Ex PW1/323, Copy of Invoice
No. 9000005721 Dated 24.10.2012 Ex PW1/324,
Copy of Bill of Lading No. 8000005539 Dated
24.10.2012 Ex PW1/325, Copy of warehouse bill of
entry Ex PW1/326, Copy of email dated 12.11.2012 &
letter dated 12.11.2012 sent by plaintiff to defendant
Ex PW1/327, Copy of J.B. Boda Survey Report dated
26.11.2012 & S K. Chakraborty survey report dated
04.12.2012 Ex PW1/328, Copy of Letter dated
27.02.2013 sent by plaintiff to GAC Shipping Pvt.
Ltd. Ex PW1/329 , Copy of Letter dated 22.02.2013
along with claim bill and claim form sent by plaintiff
to defendant Ex PW1/330, Copy of Letter dated
09.07.2013 sent by plaintiff to defendant Ex PW1/331,
Copy of Letter dated 18.03.2013 sent by defendant to
plaintiff Ex PW1/332, Copy of Letter dated
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 38 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
19.03.2014 sent by plaintiff to defendant Ex PW1/333,
Copy of repudiation letter dated 20.03.2014 received
by the plaintiff from the defendant Ex PW1/334 ,
Copy of Letter dated 28.03.2014, 08.04.2014 &
29.07.2014 sent by plaintiff to defendant Ex PW1/335,
Copy of Written Statement filed by defendant before
consumer forum (20) Ex PW1/336 .
30. PW1 Ashok Kumar Maharshi was cross
examined by the Ld. Counsel for the defendant
company.
31. PW2 Rohit Kumar is a summoned witness from
District Forum, who produced original Diary Register
of 10.09.2015 to 13.05.2016 and 15.10.2014 to
10.09.2015 having reference of the complaint cases
No. 401/14, filed on 25.11.14, 400/14 filed on
25.11.2014, 115/16 filed on 13.03.2016, 53/16 filed on
13.02.2016, 57/16 filed on 13.02.2016, 118/16 filed on
18.03.2016, 403/14 filed on 25.11.2014, 52/16 filed on
13.02.2016, 404/14 filed on 25.11.2014, 120/16 filed
on 18.03.2016, 117/16 filed on 18.03.2016, 119/16
filed on 18.03.2016, 54/16 filed on 13.02.2016, 396/14
filed on 25.11.2014, 116/16 filed on 18.03.2016,
402/14 filed on 25.11.2014, 56/16 filed on 13.02.2016,
58/16 filed on 13.02.2016, 395/14 filed on 25.11.2014
before the Ld. District Forum.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 39 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
32. PW2 Rohit Kumar was not cross examined by
the Ld. Counsel for the defendant company despite
opportunity being given.
33. DW1 Renuka Chaudhary tendered her evidence
by way of affidavit ExDW-1/A and has deposed on the
lines of stand taken in the written statement filed by
the defendant company. She has relied upon the
documents i.e Power of attorney ExDW1/1 and the
Institute Cargo Clauses (A) ExDW1/2, Report of
Bhimani & Company dated 20.3.2012 ExDW1/3,
Report of M/s G.P. Dave & Sons dated 21.12.2012
ExDW1/4 and the report of J.C Gupta & Company
dated 15.12.2012 ExDW1/5.
34. DW1 Renuka Chaudhary was cross examined
on behalf of the plaintiff company.
35. DW2 S.K Chakraborty, Surveyor was also
examined by the defendant company who filed his
evidence by way of affidavit ExDW2/A and has relied
upon Survey report dated 10.05.2013 ExDW2/1,
Survey report dated 10.04.2013 ExDW2/2, Survey
Report dated 04.12.2012 ExDW2/3, Survey Report
dated 10.09.2012 ExDW2/4, Survey Report dated
10.07.2013 ExDW2/5, Survey Report dated
10.07.2013 ExDW2/6, Survey Report dated
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 40 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
10.05.2013 ExDW2/7 and Survey Report dated
04.12.2012 ExDW2/8.
36. DW2 S.K Chakraborty was cross examined on
behalf of the plaintiff company.
37. Here, it is pertinent to mention that at the stage
when evidence of the defendant company has already
been recorded, the defendant company moved an
application under order 16 Rule (1) (3) r/w section 151
CPC making a request to summon additional witnesses
to be examined by the defendant company. Vide
aforesaid application defendant company wanted to
produce and prove “Institute Cargo Clauses (A) as
applicable to Marine Cargo- Single Voyage (Sea) Policy”.
38. The said application moved on behalf of the
defendant company was allowed by this Court vide
order dated 27.04.2024 subject to the cost whereby the
defendant company was allowed to summon the
concerned witness. Pursuant to the summons issued by
the court, one Sh. R.Pardha Saradhi appeared on
06.5.2024, and he was examined as DW2 in another
connected case bearing no. 763/2023. In that case, he
proved the Institute Cargo Clauses (A) as applicable to
Marine Cargo- Single Voyage (Sea) Policy as Ex
DW2/A.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 41 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
39. Both the parties made a request to place the
copy of the said document ExDW2/A in each of the
files, including the present case and it was stated that
in that eventuality there would not be any need to
examine the witness Sh. R. Pardha Saradhi as one of
the defendant witnesses in each and every case. It was
also stated on behalf of both the parties that they do
not have any objection, if the said document
ExDW2/A is read and considered into evidence while
deciding the case at the time of final hearing.
40. Considering the request of both the parties and
no objection from their side, the copy of Institute Cargo
Clauses (A) as applicable to Marine Cargo- Single Voyage
(Sea) Policy ExDW2/A, was directed to be placed in
each of the cases pending between the parties
including the present one and it was directed that same
shall be read in evidence at the stage of final disposal
of the cases. Accordingly, the present case reached
the stage of final arguments.
41. When the case was at the stage of final
arguments, the plaintiff company moved an
application under order 6 Rule 17 r/w section 151 CPC
seeking certain amendments in the plaint. By way of
the said application plaintiff company had made a
request to amend para 7 and 9 of the plaint which
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 42 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
basically is having the details of the consignments and
surveyor reports. It was stated on behalf of the plaintiff
company that there being 13 cases pending between
the parties, therefore, inadvertently, there are
typographical mistakes regarding the details of the
consignments and surveyor reports which need to be
corrected.
42. Ld. Counsel for the defendant company
submitted that he has no objection if the aforesaid
application of the plaintiff company is allowed with a
rider that it should not be presumed that the documents
relied upon by the plaintiff company stand proved as
the defendant company has already taken objections
regarding mode of proof of certain documents.
43. Vide order dated 20.7.2024, the aforesaid
application was allowed/disposed of subject to certain
conditions as mentioned therein. The defendant
company was given the liberty to file the written
statement and in case no amended written statement is
filed, the original statement filed on behalf of the
defendant company shall be considered and the case
again came to be adjourned for final argument.
Pertinent to mention that the defendant company has
not filed any amended written statement, therefore, the
written statement filed originally at the initial stage has
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 43 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
been considered.
44. Ld. Counsels for both the parties have filed the
written synopsis of arguments and have argued the
matter orally as well at length. Their arguments shall
be considered while giving the findings on the issues.
45. Ld. Counsel for the plaintiff has relied upon the
following judicial pronouncements:-
a) M.P Steel Corporation Vs Commissioner of Central
Excise, (2015) 7 SCC 58
b) Saurashtra Chemicals Ltd vs National Insurance
Company Ltd , (2019) 19 SCC 70.
c) Bharat Watch Company Vs NIC (2019) 6 SCC 212.
d) National Insurance Company Ltd Vs Mangalagowri
Cashew Industries, II (2006) CPJ-32 (National
Commission)
e) Bajaj Allianz GIC Ltd vs G P Petroleums Ltd. (State
Commission Mumbai), Appeal No. A/16/2917
f) Texco Marketing Pvt Ltd vs Tata AIG Capital General
Insurance Company Ltd and Ors, IX (2022) SLT 144
g) Narsingh Ispat Ltd Vs OIC Capital, 2022 SCC
OnLine SC 535.
h) Mavji Kanji Jungi & Anrs vs Oriental Insurance
Company Ltd. I (2021) CPJA 435 ( National
Commission)
i) Mappie International Ltd Vs Oriental Insurance Co.
Ltd, (NCDRC, New Delhi ) CC N. 5 of 2015
j) Sri Venkaterswara Syndicate Vs. Oriental Insurance
Co. Ltd II (2010) SLT 664
46. Ld. Counsel for the defendant company has
relied upon the following judicial authorities:
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 44 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
a) House of Lords in case of British and Foreign Marine
Insurance Co. Ltd Vs. Gaunt ( 1921) 2 AC 41 (HL)
b) New India Assurance Co. Ltd Vs Hira Lal Ramesh
Chand and Ors, AIR 2008 SC 2620
c) Josita Antony vs New India Assurance Company Ltd,
II (2006) ACC 713
d) J.M.F Sea Foods, Alleppey and Ors vs National
Insurance Co. Ltd, Alleppey, AIR 1992 Ker 202.
e) Bajaj Allianz General Insurance Co. Ltd and Ors Vs
The State of Madhya Pradesh , AIR 2020 SC 2237.
f) General Assurance Society Ltd vs Chandumull Jain
and Anr. , 1966 (3) SCR 500
g) Consolidated Engineering Enterprises vs Principal
Secretary, Irrigation Department and Ors ( 2008) 7
SCC 169.
h) Ghasi Ram & Ors Vs Chait Ram Saini & Ors (1998) 6
SCC 200.
i) Maidi Bhikashmiah & Anrs Vs. Venugopalrao & Ors,
1958 SCC OnLine AP 206.
j) Hassan Chand & Sons Vs H.H Majaraja Shri Gaj
Singh, 1961 SCC OnLine Raj 125.
k) Sohan Singh Vs State of Rajasthan & Ors, 1977 WLN
(UC) 96.
l) Bihar Supply Syndicate Vs Asiatic Navigation
(1993) 2 SCC 639
m) Oriental Insurance Company Ltd Vs Peacock
Plywood (P) Ltd. 2004 SCC OnLine Cal 681.
47. I have gone through the material available on
record and heard the Ld. Counsel for both the parties. I
have also gone through the case laws cited at bar.
48. For the sake of convenience, firstly I will be
deciding issue no.1, then issue no.2, followed by the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 45 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
decision on issue no.4, thereafter issue no.3 & 5
together, followed by findings on issue no. 6 and
finally issue no.7.
Issue No.1
Whether the present suit is not maintainable
being barred by Limitation, as alleged by the
defendant in the written statement? (OPD)
49. In the written statement, one of the objections
taken by the defendant company is that the suit filed
by the plaintiff company is barred by limitation. Ld.
Counsel for the defendant company submitted that it is
not in dispute that the claim of the plaintiff company
was rejected on 20-03-2014; the present suit was filed
in the year 2023 which is beyond the period of
limitation. He further submitted that the plaintiff
company cannot be given the benefit of section 14 of
the Limitation Act,1963 as neither the relief to file the
fresh suit was sought by the plaintiff company nor was
granted by the Ld. District Forum; the present
proceedings are distinct from the proceedings which
took place before the consumer forum; the period of
limitation in both the said proceedings is different ; the
proceedings before the consumer forum were not
prosecuted diligently and in good faith and the
plaintiff company was well aware that the case of the
plaintiff company would not fall under the definition
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 46 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
of consumer; By referring to the order passed by the
Consumer Forum, Ld. Counsel for the defendant
company submitted that the complaints of the plaintiff
company were dismissed vide order dated 09.2.2022.
The plaintiff company approached the Pre-Litigation
Mediation on 11.11.2023, therefore, the protection as
available u/s 14 of the Limitation Act would not be
available to the plaintiff company.
50. In reply to that Ld. Counsel for the plaintiff
company submitted that the claims of the plaintiff
company were repudiated vide communication dated
20-03-2014; plaintiff company filed the complaints
cases before the District Forum on 16-03-2016 which
were finally returned on 09.02.2022. He further
submitted that the copy of the order of District Forum
dated 09.2.2022 was received by the plaintiff company
on 07.03.2022, therefore, the period from 16-03-2016
to 07.3.2022 spent before the District Forum has to be
excluded. He further submitted that the plaintiff
company had diligently followed up its complaints
before the Consumer Forum and there were repeated
rounds of litigations about the maintainability of the
complaints; the complaints were returned vide order
dated 09.2.2022; the defendant company admitted the
part of the said processes and has participated in the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 47 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
same before the Consumer Forum and the Consumer
Forum had not adjudicated the dispute on merits. He
further submitted that the relief sought by the plaintiff
company before Consumer Forum and before this
court is identical and in a separate application moved
u/s 14 of the Limitation Act, the plaintiff company has
given details indicating how the present suit is within
limitation. He further submitted that the time spent by
the plaintiff company before the Consumer Forum has
to be excluded.
51. It will be relevant to refer to Section 14 of the
Limitation Act, which reads as under:-
“14. Exclusion of time of proceeding bona fide in
court without jurisdiction.–(1) In computing the
period of limitation for any suit the time during
which the plaintiff has been prosecuting with due
diligence another civil proceeding, whether in a
court of first instance or of appeal or revision,
against the defendant shall be excluded, where the
proceeding relates to the same matter in issue and
is prosecuted in good faith in a court which, from
defect of jurisdiction or other cause of a like
nature, is unable to entertain it.
(2) In computing the period of limitation for any
application, the time during which the applicant
has been prosecuting with due diligence another
civil proceeding, whether in a court of first
instance or of appeal or revision, against the same
party for the same relief shall be excluded, where
such proceeding is prosecuted in good faith in a
court which, from defect of jurisdiction or other
cause of a like nature, is unable to entertain it.
(3) Notwithstanding anything contained in Rule 2
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 48 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
of Order 23 of the Code of Civil Procedure, 1908
(5 of 1908), the provisions of sub-section (1) shall
apply in relation to a fresh suit instituted on
permission granted by the court under Rule 1 of
that Order, where such permission is granted on
the ground that the first suit must fail by reason of
a defect in the jurisdiction of the court or other
cause of a like nature.
Explanation.–For the purposes of this section–
(a) in excluding the time during which a former
civil proceeding was pending, the day on which
that proceeding was instituted and the day on
which it ended shall both be counted;
(b) a plaintiff or an applicant resisting an appeal
shall be deemed to be prosecuting a proceeding;
(c) misjoinder of parties or of causes of action
shall be deemed to be a cause of a like nature with
defect of jurisdiction.”
52. Section 14 of the Limitation Act deals with
exclusion of time of proceeding spent bona fide in a
court without jurisdiction. On analysis of the said
section, it becomes evident that the following
conditions must be satisfied before Section 14 can be
pressed into service:
(1) Both the prior and subsequent proceedings are civil
proceedings prosecuted by the same party;
(2) The prior proceeding had been prosecuted with due
diligence and in good faith;
(3) The failure of the prior proceeding was due to defect
of jurisdiction or other cause of like nature;
(4) The earlier proceeding and the latter proceeding must
relate to the same matter in issue and;
(5) Both the proceedings are in a court.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 49 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
53. Here I may refer to a few judgments touching
the controversy in question qua limitation. In the case
of Laxmi Engineering Works vs P.S.G. Industrial
Institute,1995 SCC (3) 583, the following order of
National Commission dated 07-12-1993 was assailed
before Hon’ble Supreme Court:-
“From the facts appearing on record it is manifest
that the complainant is carrying on the business
of manufacture of machine parts on a large scale
for the purpose of earning profit and significantly
one single item of machinery in respect of which
the complaint petition was filed by him before the
State Commission itself is of the value of Rs. 21
lakhs and odd. In the circumstances, we fail to
see how the conclusion can be escaped that the
machinery, in question which is alleged to be
defective was purchased for a commercial
purpose. Hence, the complainant is not entitled to
be regarded as a consumer and the complaint
petition filed by him was not maintainable before
the State Commission. He order passed by the
State Commission is set aside. The complaint
petition is dismissed.” The National Commission,
however, observed that their order does not
preclude the appellant from pursuing his remedy
by way of ordinary civil suit.”
54. In that case Hon’ble Supreme Court observed as
under:-
“25.So far as the present case is concerned we
must hold (in agreement with the National
Commission), having regard to the nature and
character of the machine and the material on
record that it is not goods which the appellant
purchased for use by himself exclusively for the
purpose of earning his livelihood by means of self
employment, as explained hereinabove.
26.The appeal accordingly fails and is dismissed
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 50 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
but without costs. If the appellant chooses to file
a suit for the relief claimed in these proceedings,
he can do so according to law and in such a case
he can claim the benefit of Section 14 of the
Limitation Act to exclude the period spent in
prosecuting the proceedings under the Consumer
Protection Act, while computing the period of
limitation prescribed for such a suit.”
55. In a similar case of Saushish Diamonds Ltd. vs
National Insurance Co. Ltd.,(1998) 8 SCC357 , the
appellant had approached the National Consumer
Disputes Redressal Commission for recovery of the
loss of diamonds entrusted to the Commission Agent.
The National Consumer Disputes Redressal
Commission, New Delhi in its order dated 28-9-1995
passed the order holding that since the Insurance
Company has repudiated the claim, it declined to grant
the relief. Thus, an appeal was preferred before the
Hon’ble Supreme Court.:-
“2. Shri Harish Salve, the learned Senior Counsel
for the appellant, contended that in view of the
policy undertaken by the respondent, the
Commission could have granted the relief, instead
of relegating the appellant to a civil action. We
find no force in the contention. We have gone
through the stand taken by the respondent in the
repudiation. The very interpretation of the policy
itself is a subject-matter of the dispute. Under
these circumstances, the Commission rightly
relegated the parties to a civil action. It is true that
limitation has run out against the appellant during
the pendency of the proceedings. Therefore, the
time taken between the date of the filing of the
claim before the Commission and the date of its
disposal, namely, 28-9-1995 would be considered
by the civil court for exclusion under Section 14KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 51 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
of the Limitation Act, 1963. The appeal is
accordingly dismissed.”
56. In Basheer Ahmed Noor-ul-Hussain Farooqui Vs.
Shaikh Hamad, MANU/MH/1527/2021, the Hon’ble
High Court of Bombay, while considering the
contentions regarding the applicability of section 14,
Limitation Act upon the time spent by the plaintiff
bona fide before a Court without jurisdiction. It was
held:-
“It is thus material to note, that the District
Consumer Forum, had entertained the plea of the
plaintiff for a direction to the defendant to execute
the sale deed upon the receipt of the balance
consideration and had issued an according
direction. It is quite another matter altogether, that
the State Commission by its order dated
04.01.2010, dismissed the claim of the plaintiff
and directed him to approach the Civil Court
which order was confirmed by the National
Commission on 14.03.2011 immediately after
which the plaintiff approached the Civil Court on
13.04.2011 with the suit for specific performance.
The very fact that the District Forum, had ruled in
favour of the plaintiff would indicate that the
plaintiff had prosecuted the remedy before the
Consumer Forum diligently and bonafidely. In a
series of decisions, namely, Laxmi Engineering
Works; Saushish Diamonds Ltd.; M/s Deokar
Exports Pvt. Ltd. and Shangrilla Apartments Co-
Operative Housing Society ltd (Supra), it has been
held, that prosecution of a remedy before the
Consumer Forum, would be a legal and valid
ground, to invoke and apply the provisions of
Section 14 of the Limitation Act. There is no
reason whatsoever, why the same benefit, cannot
be granted to the plaintiff, specifically in light of
the fact, that the District Consumer Forum in fact
entertained the plea of the plaintiff and had
granted relief. It therefore cannot be said thatKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 52 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
prosecution of the remedy by the plaintiff before
the authorities under the Consumer Protection Act
was either malafide, or with knowledge that the
same was not maintainable. Ramji Pandey (Supra)
upon which reliance has been placed by Mr.
Deshpande, learned counsel for the respondent, is
on a different footing altogether as in that case,
the initial institution of the suit itself, was in the
proper forum that is the Civil Court and it was not
a case where at the inception, the proceedings
were filed and prosecuted in a forum which
subsequently was held to be without authority.
The courts below, have failed to consider the
above position, in light of the settled position of
law, and therefore, the finding in this regard,
cannot be sustained. It is therefore held, that the
suit as filed by the plaintiff, was maintainable in
view of the availability and applicability of
Section 14 of the Limitation Act, to the plaintiff,
for if the period spent before the Consumer Forum
and the Higher Authorities under the Consumer
Protection Act was subtracted, then the suit filed
by the plaintiff, was clearly within the limitation
as prescribed under Section 54 of the Limitation
Act.”
57. In the case of Purni Devi Vs Babu Ram , 2024
INSC 259, by referring to the cases of Consolidated
Engg. Enterprises vs The Principal Secretary (Irrigation
Department) & Ors, (2008) 7 SCC 169 and the case of
Sesh Nath Singh V. Baidyabati Sheoraphuli Coop Bank
Ltd, (2021) 7 SCC 313, Hon’ble Supreme Court
observed as under:-
34. The judgment of this Court in M.P. Steel
(Supra) discussed the phrases, “due diligence” and
“in good faith” for the purposes of invocation of
Section 14 of the Limitation Act. While
considering the application of Section 14 to the
Customs Act, it was observed:
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 53 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
“10. We might also point out that Conditions 1
to 4 mentioned in the Consolidated Engg. case
have, in fact, been met by the Plaintiff. It is clear
that both the prior and subsequent proceedings
are civil proceedings prosecuted by the same
party. The prior proceeding had been prosecuted
with due diligence and in good faith, as has been
explained in Consolidated Engg. [(2008) 7 SCC
169] itself. These phrases only mean that the
party who invokes Section 14 should not be
guilty of negligence, lapse or inaction. Further,
there should be no pretended mistake
intentionally made with a view to delaying the
proceedings or harassing the opposite party.
49. ……. the expression “the time during
which the plaintiff has been prosecuting
with due diligence another civil
proceeding” needs to be construed in a
manner which advances the object sought
to be achieved, thereby advancing the
cause of justice.” (emphasis supplied)
35. The judgments in Consolidated Engg.
Enterprises (Supra) and M.P. Steel (Supra) have
been followed consistently by this Court. For
instance in Sesh Nath Singh v. Baidyabati
Sheoraphuli Coop. Bank Ltd. 5 (2-Judge Bench),
while holding Section 14 to be applicable to
applications under Section 7 of the Insolvency and
Bankruptcy Code, 2016 and the SARFAESI Act, it
was observed:-
“75. Section 14 of the Limitation Act is to be
read as a whole. A conjoint and careful
reading of sub-sections (1), (2) and (3) of
Section 14 makes it clear that an applicant
who has prosecuted another civil proceeding
with due diligence, before a forum which is
unable to entertain the same on account of
defect of jurisdiction or any other cause of
like nature, is entitled to exclusion of the timeKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 54 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
during which the applicant had been
prosecuting such proceeding, in computing
the period of limitation. The substantive
provisions of sub-sections (1), (2) and (3) of
Section 14 do not say that Section 14 can only
be invoked on termination of the earlier
proceedings, prosecuted in good faith.”
58. Here it would be relevant to refer to the
observation of the Hon’ble Supreme Court made in the
case of M.P. Steel Corporation (supra), which are as
under:-
” 34. It now remains to consider the decision of a
2-Judge Bench reported in P. Sarathy v. State
Bank of India, (2000) 5 SCC 355. This judgment
has held that an abortive proceeding before the
appellate authority under Section 41 of the Tamil
Nadu Shops and Establishment Act would attract
the provisions of Section 14 of the Limitation Act
inasmuch as the appellant in this case had been
prosecuting with due diligence another civil
proceeding before the appellate authority under the
Tamil Nadu Shops and Establishment Act, which
appeal was dismissed on the ground that the said
Act was not applicable to nationalized banks and
that, therefore, such appeal would not be
maintainable. This Court made a distinction
between “Civil Court” and “court’ and expanded
the scope of Section 14 stating that any authority or
Tribunal having the trappings of a Court would be
a “court” within the meaning of Section 14. It must
be remembered that the word “Court” refers only to
a proceeding which proves to be abortive. In this
context, for Section 14 to apply, two conditions
have to be met. First, the primary proceeding must
be a suit, appeal or application filed in a Civil
Court. Second, it is only when it comes to
excluding time in an abortive proceeding that the
word “Court” has been expanded to include
proceedings before tribunals.
35. This judgment is in line with a large number of
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 55 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
authorities which have held that Section 14 should
be liberally construed to advance the cause of
justice – see: Shakti Tubes Ltd. v. State of Bihar,
(2009) 1 SCC 786 and the judgments cited therein.
Obviously, the context of Section 14 would require
that the term “court” be liberally construed to
include within it quasi-judicial Tribunals as well.
This is for the very good reason that the principle
of Section 14 is that whenever a person bonafide
prosecutes with due diligence another proceeding
which proves to be abortive because it is without
jurisdiction, or otherwise no decision could be
rendered on merits, the time taken in such
proceeding ought to be excluded as otherwise the
person who has approached the Court in such
proceeding would be penalized for no fault of his
own. This judgment does not further the case of
Shri Viswanathan in any way. The question that
has to be answered in this case is whether suits,
appeals or applications referred to by the
Limitation Act are to be filed in courts. This has
nothing to do with “civil proceedings” referred to
in Section 14 which may be filed before other
courts or authorities which ultimately do not
answer the case before them on merits but throw
the case out on some technical ground. Obviously
the word “court” in Section 14 takes its colour from
the preceding words “civil proceedings”. Civil
proceedings are of many kinds and need not be
confined to suits, appeals or applications which are
made only in courts stricto sensu. This is made
even more clear by the explicit language of Section
14 by which a civil proceeding can even be a
revision which may be to a quasi-judicial tribunal
under a particular statute”.
59. Coming back to the case at hand, it is not in
dispute that initially the complaints of the plaintiff
company were returned by the District Forum vide
order dated 27.3.2017 ExPW1/3. From the order dated
27.03.2017 ExPW1/3, it is evident that Ld. District
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 56 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Forum observed that it has no pecuniary jurisdiction to
entertain the complaint filed by the plaintiff company.
The matter landed before National Commission, then
before State Commission and finally vide order dated
09.02.2022, again the complaints of the plaintiff
company were returned by the District Forum vide
order dated 09.2.2022 ExPW1/10 observing that “the
dispute raised by the complainant company as involved in
the instant case is a dispute between “business to business”
and is not covered under the Act as observed by Hon’ble
Apex Court in Laxmi Engg. Works (Supra). The instant
complaint is therefore dismissed as not maintainable
before Consumer Commission under the Act”. From the
said order it is evident that District Forum had
dismissed the complaints of the plaintiff company on
the ground that the purpose of transaction between the
parties were commercial and the complainant
( plaintiff company) is not a consumer under section 2
(1) (d) of the Act. Meaning thereby, the District Forum
did not consider the complaints of the plaintiff
company on merits.
60. Having said so, there would be no difficulty in
arriving at a conclusion that the case of the plaintiff
company comes within the ambit of section 14 of the
Limitation Act. In the present case it is not in dispute
that the proceedings before the District Forum were
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 57 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
between the same parties i.e M/s KLJ Resources Ltd
vs The Oriental Insurance Co. Ltd who are the plaintiff
company and defendant company respectively before
this Court. There would be no denial of the facts that
the proceedings before the District Forum were civil
proceedings and so is the case before this Court.
There is nothing on record suggesting that the plaintiff
company had not prosecuted its complaints with due
diligence and in good faith. Assailing the order of
District Forum before the Appellate Authority i.e State
Commission and National Commission indicates that
plaintiff company was diligent enough in prosecuting
its claim before the District Forum. The orders passed
by the District Forum, State Commission and National
Commission would make it further clear that the
plaintiff company had tried its best to get its claims
adjudicated by the District Forum. As noted herein
above the proceedings came to be dismissed by the
District Forum on technical grounds of jurisdiction.
Last but not the least, the issue between the parties
before the District Forum as well as before this Court
are the same i.e according to the plaintiff company the
repudiation of the claims of the plaintiff company by
the defendant company is illegal.
61. In view of my aforesaid discussion and the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 58 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
observations made in various judgments, as noted,
now it is no more res Integra that prosecution of a
remedy before the Consumer Forum, would be a legal
and valid ground, to invoke and apply the provisions
of Section 14 of the Limitation Act. There is no reason
whatsoever why the same benefit cannot be granted to
the plaintiff company in the present case. It is
therefore cannot be said that prosecution of the remedy
by the Plaintiff company before the authorities under
the Consumer Protection Act, 2019 was either
malafide, or with knowledge that the same was not
maintainable. Thus, the plaintiff company is entitled to
exclusion of the time during which the plaintiff
company had prosecuted its claims before the District
Forum.
62. Having said so, now it is to be seen whether the
present suit has been instituted within the period of
limitation or not even after giving the benefits of
section 14 of the Limitation Act.
63. According to the plaintiff company, the claims
of the plaintiff company were repudiated by the
defendant company vide communications all dated
20.3.2014 ExPW1/24, ExPW1/42, ExPW1/58,
ExPW1/73, ExPW1/92, ExPW1/108, ExPW1/123,
ExPW1/138, ExPW1/156, ExPW1/171, ExPW1/185,
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 59 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
xPW1/204, ExPW1/222, ExPW1/238, ExPW1/253,
ExPW1/269, ExPW1/284, ExPW1/299, ExPW1/316
and ExPW1/334. That being so, the cause of action in
the present case arose on 20.03.2014. The limitation
period would start from 21.03.2014.
64. In ordinary circumstances, the period of
limitation for filing the present suit for recovery would
have expired on 20.03.2017.
65. In the present case, the plaintiff company has
filed a separate application under section 14 of the
Limitation Act seeking to exclude a certain period
while calculating the period of limitation and has
sought the benefit under section 14 of the Limitation
Act. According to the plaintiff company as pleaded in
the said application, the plaintiff company is said to
have preferred the complaints to the District Forum on
16.03.2016. Meaning thereby, the plaintiff company
kept waiting during the period from 21.03.2014 to
16.03.2016. Even as per the case of the plaintiff
company, the complaints before the District Forum
were filed after One Year Eleven Months and twenty
six days. As per the case of the plaintiff company, the
last order passed by the District Forum was of
09.02.2022 as the complaints of the plaintiff company
came to be dismissed or returned on the ground of
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 60 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
maintainability.
66. Pertinent to mention that during the argument,
Ld. Counsel for the plaintiff pointed out that although
the said order of the District Forum is dated 9.2.2022,
but it was prepared on 7.03.2022, therefore, the period
from 16.3.2016 to 07.03.2022, has to be excluded. I do
find support in the aforesaid contention of the Ld.
Counsel of the plaintiff as from the record it is evident
that the order dated 09.02.2022 appears to have been
made ready on 07.3.2022 and served on the plaintiff
company. Ld. Counsel for the defendant has not
disputed the same. That being so, the plaintiff
company has spent the time before the Consumer
Forum from 16.03.2016 to 07.03.2022 and that has to
be excluded in terms of section 14 of Limitation Act.
67. The limitation period started from 21.03.2014
and it stopped on 16.03.2016 at the time when the
plaintiff company preferred complaints before the
District Forum. The limitation would again start w.e.f.
08.3.2022 i.e. one day after the day when the
complaints were returned by the District Consumer
Forum and were received by the plaintiff company.
The present suit has been filed on 10.5.2023 i.e after
One year Two months and Three days. The total
period spent by the plaintiff company, excluding the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 61 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
period spent before District Forum, would be One
Year Eleven Months and Twenty Six days + One
Year Two Months and Three days i.e Three years
One Month and around twenty Nine Days. The
plaintiff company can be given the benefit under
section 14 of the Limitation Act,1963 only for that
period which was spent before the District Forums.
68. We can understand it from another angle also.
There are three blocks of the time period which are
relevant for calculating the period of limitation.The
first block would be from 21.03.2014 to 16.03.2016.
This is a period which was spent by the plaintiff
company and no claim was preferred by the plaintiff
company before any Court, Tribunal or Judicial
Authority. The second block would be the time spent
by the plaintiff company before the District Forum i.e
from 16.03.2016 to 07.03.2022. This time has to be
excluded and the third block would be the period from
08.03.2022 to 10.5.2023. As far as calculating the
period of limitation is concerned, the time spent in
first block and third block would be added which
comes as noted herein above i.e Three years One
Month and around Twenty Nine Days. The limitation
period for filing the recovery suit is 3 years.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 62 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
69. Further, in terms of the proviso attached to the
section 12 A of the Commercial Courts Act,2015, the
time spent in Pre-Litigation Mediation is to be
excluded while calculating the period of limitation. In
the present case, as per the non starter report, the
application before the Pre-Litigation Mediation was
preferred on 11.01.2023 and the non-starter report was
released on 11.04.2023, therefore, around three
months were spent by the plaintiff company before the
Pre-litigation Mediation and that period also has to be
excluded and by that calculation, the plaintiff company
spent a total period of Two years Ten months twenty
Twenty Nine days (Three years One Month and
around twenty Nine Days (-) Three months).
Therefore, on all counts the present suit of the plaintiff
is within the period of limitation. Accordingly, issue
no.1 is decided in favour of the plaintiff company and
against the defendant company .
Issue No. 2
Whether the suit is bad for non-joinder of necessary
parties, as alleged by the defendant in the written
statement? OPD
70. The next objection taken by the defendant
company is that the present suit is bad for non-joinder
of necessary and proper parties and is liable to be
dismissed. Ld. Counsel for the defendant company
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 63 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
submitted that the shipper or the shipping agent to
whom also the plaintiff company had raised the
claims, was a necessary party and he has not been
made defendant in the present case. He submitted that
the goods in question were transported by the shipper
and it was the responsibility of the shipper to make
the losses good, as per the case of the plaintiff
company, therefore, the shipping agent was a
necessary party which is not there, therefore, the suit is
liable to be dismissed.
71. Refuting the allegations of the defendant
company, Ld. Counsel for the plaintiff company
submitted that as per the insurance policies issued by
the defendant company, it was not obligatory for the
plaintiff company to implead the shipping agent in
case of losses covered under the policy. He submitted
that the plaintiff company had lodged a protest on the
shipper therefore, preserving the rights to subrogation
and it cannot be expected from the plaintiff company
to indulge in litigation with the shipper to claim the
indemnity from the Insurer.
72. Before proceeding further, I may mention that
the general rule in regard to impleadment of parties is
that the plaintiff company in a suit, being dominus
litis, may choose the persons against whom he wishes
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 64 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
to litigate and cannot be compelled to sue a person
against whom he does not seek any relief.
Consequently, a person who is not a party has no right
to be impleaded against the wishes of the plaintiff
company. But this general rule is subject to the
provisions of Order 1 Rule 10(2) of the Code of Civil
Procedure, which provides for impleadment of proper
or necessary parties. The said sub-rule is extracted
below:
“10. (2) Court may strike out or add parties .–The
court may at any stage of the proceedings, either
upon or without the application of either party, and
on such terms as may appear to the court to be just,
order that the name of any party improperly joined,
whether as plaintiff or defendant, be struck out,
and that the name of any person who ought to have
been joined, whether as plaintiff or defendant, or
whose presence before the court may be necessary
in order to enable the court effectually and
completely to adjudicate upon and settle all the
questions involved in the suit, be added.”
73. The said provision makes it clear that a court
may, at any stage of the proceedings, either upon or
even without any application, and on such terms as
may appear to it to be just, direct that any of the
following persons may be added as a party: (a) any
person who ought to have been joined as plaintiff or
defendant, but not added; or (b) any person whose
presence before the court may be necessary in order to
enable the court to effectively and completely
adjudicate upon and settle the questions involved in
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 65 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
the suit. In short, the court is given the discretion to
add as a party any person who is found to be a
necessary party or proper party.
74. Here I may refer to the case of Mumbai
International Airport (P) Ltd. v. Regency Convention
Centre & Hotels (P) Ltd., (2010) 7 SCC 417, wherein it
was held that:-
“15. A “necessary party” is a person who ought
to have been joined as a party and in whose
absence no effective decree could be passed at all
by the court. If a “necessary party” is not
impleaded, the suit itself is liable to be dismissed.
A “proper party” is a party who, though not a
necessary party, is a person whose presence
would enable the court to completely, effectively
and adequately adjudicate upon all matters in
dispute in the suit, though he need not be a person
in favour of or against whom the decree is to be
made. If a person is not found to be a proper or
necessary party, the court has no jurisdiction to
implead him, against the wishes of the plaintiff.
The fact that a person is likely to secure a
right/interest in a suit property, after the suit is
decided against the plaintiff, will not make such
person a necessary party or a proper party to the
suit for specific performance.”
75. In the present case, it is not in dispute that all the
consignments belonging to the plaintiff company were
insured by the defendant company and for that
separate cover notes and insurance policies were
issued. As such it is also not in dispute, rather it has
come on record that there was a loss of quantity of the
goods which were imported by the plaintiff company.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 66 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
The bone of contention between the parties is whether
that losses, as detailed, are covered by the insurance
policies or not? It is also a matter of fact that the
plaintiff company is stated to have lodged the claim
before the Shipper also. There is nothing on record
suggesting that it was the pre-condition to accept the
claims of the plaintiff company by the defendant
company to raise the claims first to the shipper.
Further, it is not that the liability of the shipper and the
insurance company is joint and several.
76. There was a separate contract of insurance
between the plaintiff and the defendant company and
the consideration thereof was the premium to be paid
by the plaintiff company to the defendant company
and defendant company was under obligation to make
the loss good in terms of the clauses of the insurance
policy as agreed between the parties, in case it comes
within the ambit of the policy. There is no privity of
contract between the shipper and the insurance
company as such. Therefore, in any claim filed by the
plaintiff company against the defendant company, the
shipper would not be a necessary or proper party.
Therefore, issue No. 2 is decided in favour of the
plaintiff company and against the defendant company.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 67 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Issue No. 4
Whether the present suit is not maintainable the
plaintiff having clubbed together separate claims
arising out of the separate policies having different
survey reports and different assessment of loss, as
alleged by the defendants in the written statement?
(OPD)
77. The next objection taken by the defendant
company is that the present suit is not maintainable as
the plaintiff company has clubbed together separate
claims arising out of separate policies. Ld. Counsel
for the defendant company submitted that for each of
the consignments, there was a separate cover note and
separate policy. The claims of the plaintiff company
have been rejected by the defendant company
separately. Therefore, there was a different cause of
action for each of the claims and the plaintiff company
cannot be allowed to club the same as one cause of
action. He further submitted that the plaintiff company
has filed the claims of more than one consignment just
to bring the claim within the pecuniary jurisdiction of
this court. On this ground, the present suit is liable to
be rejected.
78. Per contra, Ld. Counsel for the plaintiff
company submitted that in the present case, the parties
are the same; all the claims were processed and
rejected by the defendant company on the same day;
all the claims are of the similar nature which came to
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 68 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
be dismissed or rejected on the ground by the
defendant company. There is a common relief sought
by the plaintiff company. He has also taken me to
order 2 rule 3 CPC, Ld. Counsel for the plaintiff
company submitted that the plaintiff company is
within its right to club more than one cause of action
when the parties are the same.
79. Since the present suit is being challenged for
misjoinder of causes of action also, it is pertinent to
mention here the law on the point which is as under:
Order 2 Rule 3 CPC
“3. Joinder of causes of action.–(1) Save as
otherwise provided, a plaintiff may unite in the
same suit several causes of action against the
same defendant, or the same defendants jointly;
and any plaintiffs having causes of action in
which they are jointly interested against the same
defendant or the same defendants jointly may
unite such causes of action in the same suit.
(2) Where causes of action are united, the
jurisdiction of the Court as regards the suit shall
depend on the amount or value of the aggregate
subject-matters at the date of instituting the suit.”
Order 2 Rule 6 CPC
“6. Power of court to order separate trials .–
Where it appears to the court that the joinder of
causes of action in one suit may embarrass or
delay the trial or is otherwise inconvenient, the
court may order separate trials or make such other
order as may be expedient in the interests of
justice.”
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 69 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
80. The expression “cause of action” is the fact or
facts which give a person a right to judicial relief. A
cause of action, thus, means every fact, which, if
traversed, it would be necessary for the plaintiff to
prove in order to support his right to a judgment of the
court. In other words, it is a bundle of facts which,
taken with the law applicable to them, gives the
plaintiff a right to relief against the defendant. It must
include some act done by the defendant since in the
absence of such an act no cause of action can possibly
accrue. It is not limited to the actual infringement of
the right sued on but includes all the material facts on
which it is founded.
81. Order 2 Rule 3 CPC provides for the joinder of
several causes of action and states that a plaintiff may
unite in the same suit several causes of action against
the same defendant, or the same defendants jointly or
several plaintiffs having causes of action in which they
are jointly interested against the same defendant or
defendants jointly may unite them in one suit. The
remedy for any possible inconvenience with regard to
the said rule is supplied by the provisions of Order 2
Rule 6, which authorises the Court to order separate
trials of causes of action which though joined in one
suit cannot be conveniently tried or disposed of
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 70 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
together.
82. In the case of Prem Lala Nahata v. Chandi Prasad
Sikaria, (2007) 2 SCC 551 : , it was held that:-
“11. Order 2 deals with frame of suits. It provides
that every suit shall be framed as far as practicable
so as to afford grounds for final decision upon the
subjects in dispute and to prevent further litigation
concerning them. It is also insisted that every suit
shall include the whole of the claim that a plaintiff
is entitled to make in respect of its subject-matter.
There is a further provision that the plaintiff may
unite in the same suit several causes of action
against the same defendant and the plaintiffs
having causes of action in which they are jointly
interested against the same defendant, may unite
such causes of action in the same suit. It provides
that objection on the ground of misjoinder of
causes of action should be taken at the earliest
opportunity. It also enables the court, where it
appears to the court that the joinder of causes of
action may embarrass or delay the trial or
otherwise cause inconvenience, to order separate
trials or to make such other order as may be
expedient in the interests of justice.
12. Thus, in a case where a plaint suffers from the
defect of misjoinder of parties or misjoinder of
causes of action either in terms of Order 1 Rule 1
and Order 1 Rule 3 on the one hand, or Order 2
Rule 3 on the other, the Code itself indicates that
the perceived defect does not make the suit one
barred by law or liable to rejection. This is clear
from Rules 3-A, 4 and 5 of Order 1 of the Code,
and this is emphasised by Rule 9 of Order 1 of the
Code which provides that no suit shall be defeated
by reason of non-joinder or misjoinder of parties
and the court may in either case deal with the
matter in controversy so far as it regards the rights
and interests of the parties actually before it. This
is further emphasised by Rule 10 of Order 1 which
enables the court in appropriate circumstances to
substitute or add any person as a plaintiff in a suit.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 71 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Order 2 deals with the framing of a suit and Rule 3
provides that save as otherwise provided, a
plaintiff may unite in the same suit several causes
of actions against the same defendant and any
plaintiffs having causes of actions in which they
are jointly interested against the same defendant
may unite such causes of action in the same suit.
Rule 6 enables the court to order separate trials
even in a case of misjoinder of causes of action in
a plaint filed.
13. After the amendment of Order 16 Rule 1 in
England, it was held by the Court of Appeal in
England in Thomas v. Moore [(1918) 1 KB 555 :
87 LKB 577 (CA)] thus:
“Whatever the law may have been at the time when
Smurthwaite v. Hannay [1894 AC 494 : (1891-4)
All ER Rep 865 (HL)] was decided, joinder of
parties and joinder of causes of action are
discretionary in this sense, that if they are joined
there is no absolute right to have them struck out,
but it is discretionary in the Court to do so if it
thinks right.”
14. The Privy Council in Mahant Ramdhan Puri v.
Chaudhury Lachmi Narain [AIR 1937 PC 42 :
1937 All LJ 556] pointed out: (AIR p. 45)
“It is desirable to point out that under the rules
as they now stand the mere fact of misjoinder is
not by itself sufficient to entitle the defendant to
have the proceedings set aside or action
dismissed.”
Of course, their Lordships were speaking in the
context of Section 99 of the Code. Their
Lordships referred to the above quoted
observation of the Court of Appeal in Thomas
v. Moore [(1918) 1 KB 555 : 87 LKB 577
(CA)] in that decision. It is therefore clear that a
suit that may be bad for misjoinder of causes of
action is not one that could be got struck out or
rejected by a defendant as a matter of right and
the discretion vests with the court either to
proceed with the suit or to direct the plaintiff toKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 72 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
take steps to rectify the defect. In fact, the Privy
Council in that case noticed that the suit was
bad for misjoinder of causes of action. It further
noticed that the trial Judge had in spite of the
complications created thereby, tried and
disposed of the suit satisfactorily. Therefore,
there was no occasion for the court to dismiss
the suit on the ground of misjoinder of causes
of action at the appellate stage.
15. It is well understood that procedure is the
handmaid of justice and not its mistress. The
scheme of Order 1 and Order 2 clearly shows that
the prescriptions therein are in the realm of
procedure and not in the realm of substantive law
or rights. That the Code considers objections
regarding the frame of suit or joinder of parties
only as procedural, is further clear from Section 99
of the Code which specifically provides that no
decree shall be reversed in appeal on account of
any misjoinder of parties or causes of action or
non-joinder of parties unless a court finds that the
non-joinder is of a necessary party. This is on the
same principle as of Section 21 of the Code which
shows that even an objection to territorial
jurisdiction of the court in which the suit is
instituted, could not be raised successfully for the
first time in an appeal against the decree unless the
appellant is also able to show consequent failure of
justice. The Suits Valuation Act similarly indicates
that absence of pecuniary jurisdiction in the court
that tried the cause without objection also stands
on the same footing. The amendment to Section 24
of the Code in the year 1976 confers power on the
court even to transfer a suit filed in a court having
no jurisdiction, to a court having jurisdiction to try
it. In the context of these provisions with particular
reference to the rules in Order 1 and Order 2 of the
Code, it is clear that an objection of misjoinder of
plaintiffs or misjoinder of causes of action, is a
procedural objection and it is not a bar to the
entertaining of the suit or the trial and final
disposal of the suit. The court has the liberty even
to treat the plaint in such a case as relating to two
suits and try and dispose them of on that basis.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 73 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
16. Order 7 Rule 11(d) speaks of the suit being
“barred by any law”. According to Black’s Law
Dictionary, bar means, a plea arresting a law suit
or legal claim. It means as a verb, to prevent by
legal objection. According to Ramanatha Aiyar’s
Law Lexicon, “bar” is that which obstructs entry
or egress; to exclude from consideration. It is
therefore necessary to see whether a suit bad for
misjoinder of parties or of causes of action is
excluded from consideration or is barred entry for
adjudication. As pointed out already, on the
scheme of the Code, there is no such prohibition or
a prevention at the entry of a suit defective for
misjoinder of parties or of causes of action. The
court is still competent to try and decide the suit,
though the court may also be competent to tell the
plaintiffs either to elect to proceed at the instance
of one of the plaintiffs or to proceed with one of
the causes of action. On the scheme of the Code of
Civil Procedure, it cannot therefore be held that a
suit barred for misjoinder of parties or of causes of
action is barred by a law, here the Code. This may
be contrasted with the failure to comply with
Section 80 of the Code. In a case not covered by
sub-section (2) of Section 80, it is provided in sub-
section (1) of Section 80 that “no suit shall be
instituted”. This is therefore a bar to the institution
of the suit and that is why courts have taken the
view that in a case where notice under Section 80
of the Code is mandatory, if the averments in the
plaint indicate the absence of a notice, the plaint is
liable to be rejected. For, in that case, the
entertaining of the suit would be barred by Section
80 of the Code. The same would be the position
when a suit hit by Section 86 of the Code is filed
without pleading the obtaining of consent of the
Central Government if the suit is not for rent from
a tenant. Not only are there no words of such
import in Order 1 or Order 2 but on the other hand,
Rule 9 of Order 1, Rules 1 and 3 of Order 1, and
Rules 3 and 6 of Order 2 clearly suggest that it is
open to the court to proceed with the suit
notwithstanding the defect of misjoinder of parties
or misjoinder of causes of action and if the suit
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 74 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
results in a decision, the same could not be set
aside in appeal, merely on that ground, in view of
Section 99 of the Code, unless the conditions of
Section 99 are satisfied. Therefore, by no stretch of
imagination, can a suit bad for misjoinder of
parties or misjoinder of causes of action be held to
be barred by any law within the meaning of Order
7 Rule 11(d) of the Code.
17. Thus, when one considers Order 7 Rule 11 of
the Code with particular reference to clause ( d), it
is difficult to say that a suit which is bad for
misjoinder of parties or misjoinder of causes of
action, is a suit barred by any law. A procedural
objection to the impleading of parties or to the
joinder of causes of action or the frame of the suit,
could be successfully urged only as a procedural
objection which may enable the court either to
permit the continuance of the suit as it is or to
direct the plaintiff or plaintiffs to elect to proceed
with a part of the suit or even to try the causes of
action joined in the suit as separate suits.
18. It cannot be disputed that the court has power
to consolidate suits in appropriate cases.
Consolidation is a process by which two or more
causes or matters are by order of the court
combined or united and treated as one cause or
matter. The main purpose of consolidation is
therefore to save costs, time and effort and to make
the conduct of several actions more convenient by
treating them as one action. The jurisdiction to
consolidate arises where there are two or more
matters or causes pending in the court and it
appears to the court that some common question of
law or fact arises in both or all the suits or that the
rights to relief claimed in the suits are in respect of
or arise out of the same transaction or series of
transactions; or that for some other reason it is
desirable to make an order consolidating the suits.
(See Halsbury’s Laws of England, Vol. 37, para
69.) If there is power in the court to consolidate
different suits on the basis that it should be
desirable to make an order consolidating them or
on the basis that some common questions of law or
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 75 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
fact arise for decision in them, it cannot certainly
be postulated that the trying of a suit defective for
misjoinder of parties or causes of action is
something that is barred by law. The power to
consolidate recognised in the court obviously gives
rise to the position that mere misjoinder of parties
or causes of action is not something that creates an
obstruction even at the threshold for the
entertaining of the suit.
19. It is recognised that the court has wide
discretionary power to control the conduct of
proceedings where there has been a joinder of
causes of action or of parties which may embarrass
or delay the trial or is otherwise inconvenient. In
that situation, the court may exercise the power
either by ordering separate trials of the claims in
respect of two or more causes of action included in
the same action or by confining the action to some
of the causes of action and excluding the others or
by ordering the plaintiff or plaintiffs to elect which
cause of action is to be proceeded with or which
plaintiff should proceed and which should not or
by making such other order as may be expedient.
(See Halsbury’s Laws of England, Vol. 37, para
73.) Surely, when the matter rests with the
discretion of the court, it could not be postulated
that a suit suffering from such a defect is
something that is barred by law. After all, it is the
convenience of the trial that is relevant and as the
Privy Council has observed in the decision noted
earlier, the defendant may not even have an
absolute right to contend that such a suit should
not be proceeded with.
83. In the case of Carlsberg Breweries A/S. Versus
Som Distilleries and Breweries Ltd. , 2018 Scc OnLine
12912, it was held that:-
“27. Joinder of causes of action-dealt with in
Order II Rule 3 enables the plaintiff to ” unite in
the same suit several causes of action against the
same defendant, or the same defendants jointly;
and any plaintiffs having joinder of causes ofKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 76 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
action in which they are jointly interested
against the same defendant or the same
defendants jointly may unite such joinder of
causes of action in the same suit .” Rule 3(2)
states that if there is such joinder of causes of
action “jurisdiction of the court as regards the
suit shall depend on the amount or value of the
aggregate subject-matters at the date of
instituting the suit.
************************************ 31.
An indisputable conclusion from the above
authorities is that there is no per se or threshold
bar to maintainability of suits, on the perceived
ground of misjoinder of causes of action. In
more senses than one, the subject of joinder of
causes of action is a mirror image of the issue of
joinder of parties. Prem Lata Nahata (supra)
clearly enunciates that “in a case where a plaint
suffers from the defect of misjoinder of parties
or misjoinder of causes of action either in terms
of Order I Rule 1 and Order I Rule 3 on the one
hand, or Order II Rule 3 on the other, the Code
itself indicates that the perceived defect does not
make the suit one barred by law or liable to
rejection.” The court later analyzed Order VII
Rule 11(b) and stated that an objection to the
frame of a suit, is at best a procedural one,
which cannot result in rejection of a plaint. The
court noticed that unlike Section 80 (of the
CPC) which enacted a clear substantive bar to
the entertainment of a suit unless a procedural
step is taken, there is no such bar-or one by
necessary implication which renders a suit
deemed improper (as to frame of suit for
misjoinder of causes of action), liable to
rejection. It was noticed, importantly that the
objection to joinder or misjoinder is an
insufficient ground for appeal, if not raised at
the earliest point. A very important conclusion
in Prem Lata Nahata (supra) (which has
nowhere been disapproved or distinguished from
in any subsequent ruling by the Supreme Court)
is that objection to misjoinder (of causes of
action) is procedural and that rejection of a suit
on that count cannot be resorted to:
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 77 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
“Thus, when one considers Order VII Rule
11 of the Code with particular reference to
Clause (d), it is difficult to say that a suit
which is bad for misjoinder of parties or
misjoinder of causes of action, is a suit
barred by any law. A procedural objection to
the impleading of parties or to the joinder of
causes of action or the frame of the suit,
could be successfully urged only as a
procedural objection which may enable the
Court either to permit the continuance of the
suit as it is or to direct the plaintiff or
plaintiffs to elect to proceed with a part of
the suit or even to try the causes of action
joined in the suit as separate suits.”
84. Adverting to the case at hand, it is not denied
that all the consignments belonged to the plaintiff
company and all the consignments have been insured
by the defendant company. Meaning thereby, the
parties are the same. The terms and conditions of the
insurance policies and cover notes of each of the
claims is the same. The ground on which the claims of
the plaintiff company have been repudiated or rejected
is also the same. The main bone of contention between
the parties in each of the claims is also identical and
similar therefore, in terms of order II rule 3 and in
view of the judgments as noted herein above, the
plaintiff company can club more than one cause of
action in a single suit and there is no such prohibition.
Only on this ground alone, the suit of the plaintiff
company cannot be rejected as the procedural law is
the handmaid of justice and not its mistress. Hence,
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 78 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
issue No.4 is also decided in favour of the plaintiff
company and against the defendant company .
Issue no.3 and 5.
3. Whether the claims of the plaintiff were rightly
repudiated by the defendant, as alleged by the
defendant in the written statement? (OPD)
5. Whether the plaintiff is entitled to recovery of the
principal amount, as asked for in plaint? (OPP)
85. Both these issues are interconnected therefore,
the same are being decided together.
86. Before proceeding further, I may note certain
admitted facts. It is not in dispute that the
consignments in question were insured by the plaintiff
company with the defendant company and for that
separate cover notes and insurance policies were
issued. Without going into the issue of whether there
were actually short quantities in all the consignments
causing losses to the plaintiff company or not, the
moot question which is to be decided by this court is,
whether the said losses are covered under the
insurance policy or not?
87. Ld. Counsel for the defendant company
submitted that no claim is payable qua the alleged loss
of quantities reported by the plaintiff company as it
neither comes within the scope of coverage nor
payable under the terms and conditions of the Marine
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 79 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Cargo Single Voyage (Sea ) Policy and Institute Cargo
Clause (A). He has taken me to the clauses of said
insurance policies and submitted that as per the
exclusion clause 4.2 of the Institute Cargo Clause (A)
there was no insurance cover for ordinary leakage,
ordinary losses, no weight or volume and ordinary
wear and tear subject matter in short. He submitted
that above said clause makes it crystal clear that the
losses in question are excluded from the Institute
Coverage. He further submitted that there was no
evidence of insured marine peril activated.
88. Ld. Defence Counsel vehemently argued that
losses of shortage volume and weight were neither due
to any peril nor due to unfortunate event covered
under the policy but has occurred only because of
handling operations of the shipment as well as the
transfer of the material from commencement port to
the ship tank and then transfer of the material from the
ship to the destination shore tank.
89. Per contra, Ld. Counsel for the plaintiff
company vehemently refuted the defense as set up by
the defendant company and submitted that the policies
which were issued to the plaintiff company are “All
Risk Policy” and it covers in its ambit losses of any
kind during the coverage/voyage period. He submitted
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 80 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
that the obligation of the plaintiff company ends once
the loss is reported to the defendant company and it
was the defendant company to prove that the losses are
not covered under the policy and mere denial on the
part of the defendant company would not be sufficient
to reject the claims of the plaintiff company.
90. In reply to the contention of the defendant
company regarding the exclusion clause 4.2 of the
Institute Cargo (A), Ld. Counsel for the plaintiff
company submitted that no such document was ever
provided by the defendant company to the plaintiff
company alongwith policy and it is during the
proceedings before the Consumer Courts that first time
the said document was brought to the notice of the
plaintiff company. He further submitted that the said
clause of Institute Cargo Clause (A) would not be
applicable as in the said clause nowhere it is
mentioned that the losses/damages must take place
during the course of transit/voyage; ‘All Risk Policy’
would cover all type of losses including the present
one which was caused to the plaintiff company. He
further submitted that the defendant company cannot
be allowed to go beyond the grounds of rejection as
communicated to the plaintiff company vide
communications dated 20.03.2014.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 81 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
91. Here it is pertinent to refer to the proceedings
dated 06.05.2024. From the proceedings dated
06.05.2024, it is evident that the copy of the Institute
Cargo Clause (A) ExDW2/A was directed to be taken
on record in the present case also making it clear that
Institute Cargo Clause (A) ExDW2/A shall be read in
evidence at the stage of final disposal of the cases.
Meaning thereby, now, there is no dispute regarding
the admissibility of the said document Institute Cargo
Clause (A) ExDW2/A and its mode of proof.
92. Before diving deep into the sea of Marine
Insurance, it is imperative to understand the meaning
of “Marine Insurance” and “Perils of Sea”. Marine
insurance is defined under Section 3 of the Marine
Insurance Act, 1963 as an agreement whereby the
insurer undertakes to indemnify the insured, in the
manner and to the extent thereby agreed, against
marine losses, that is to say, the losses incidental to
marine adventure. In simple terms, marine insurance is
a contract which protects the insured against losses on
inland waters or any land risk that may be incidental to
any sea voyage. The nature of maritime insurance is
essentially a contract of indemnity meaning thereby
that the insurance company is liable only for the actual
loss or damages suffered by the insurer. However, the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 82 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
insurer cannot be made liable for each and every loss.
Under the Act, the loss to an insurable property must
arise as a consequence of a maritime peril.
93. Section 2 (e) of the Act defines ‘maritime perils’.
Broadly speaking, ‘maritime perils’ also called as perils
of the sea include extraordinary forces of nature which
maritime ventures might need to face during the
voyage. It includes those accidents or casualties which
happen during the voyage by the act of god without
any human intervention. Some of the conditions which
cover the loss by the perils of the sea are clearly laid
down under Sections 55 to 58 of the Marine Insurance
Act, 1963.
94. Perils of the sea is defined in The Hague Visby
Rules12 which under Article 4(2) (c) defines ‘perils’
as ‘perils’ , dangers and accidents of the sea or other
navigable waters, and provides a defence for the
carrier from liability for loss or damage.
95. Under the Marine Insurance Act, 1963, loss or
damages which occur in the ordinary course of nature
or due to own default are not included in the category
of maritime perils. These include: Loss damage or
expense attributed to willful misconduct of the
insured, deliberate damage to/destruction of the goods,
ordinary leakage/ordinary loss in weight or volume /
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 83 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
ordinary wear and tear of the insured goods, any loss
proximately caused by delay, breakage, inherent vice
or nature of the subject-matter insured, or for any loss
proximately caused by rats or vermin, or for any injury
to machinery not proximately caused by maritime
perils.
96. Further, the doctrine of Proximate cause or
causa proxima is one of the principles of insurance. In
insurance law ‘causa proxima Non Remota Spectrum’
means the immediate and not the remote cause is to be
considered. For the purpose of claiming any insurance
policy the loss or injury caused must be as a result of
any one of the insured perils. Peril is basically the
cause of loss or the prime cause of what will give rise
to a loss. When the loss is caused by the perils of the
sea the maxim ‘causa proxima’ is applicable to the
case of Marine Insurance.
97. Thus, once the predominant cause is determined
and it becomes clear that the causa proxima is covered
under the ‘insured peril’, the insurer is liable to
compensate and at that point the principle of
Indemnity will take place. However, the insurer is not
liable if the losses caused by the insured and the
excepted perils cannot be separated or distinguished
and also if it is caused by the negligent act of the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 84 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
insured .
98. Before adjudicating the main controversy
between the parties, it would be relevant to weigh the
quality and quantity of the evidence adduced by the
parties. The primary witnesses of both the parties led
their evidence and have deposed by way of an
affidavit. A careful examination of their affidavit(s)
would reveal that the stand taken in the pleadings has
been reiterated in the said affidavit(s) as an
examination- in -chief of the witnesses. As noted
earlier, the witnesses have been cross examined by the
Ld. Counsel of the opposite party on certain aspects
including the facts which are not in dispute. Thus, I
would be referring to that part of their cross
examination which is relevant and is touching the
controversy between the parties and not otherwise.
99. This takes me to the real issue between the
parties. The consignments of the plaintiff company
were insured vide separate cover notes and insurance
policies. When the losses were reported to the
defendant company, surveyors were appointed who
had already given their reports. The details of the
cover notes, insurance policies and the reports of the
Surveyors (only those reports where final opinion is
there) are as under:
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 85 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Sl. No Nature of document Exhibit
First Consignment
i. Insurance Cover note 3088912 ExPW1/13
ii. Insurance Policy 272200/21/2012/841 ExPW1/14
iii. Insurance Cover note 3088918 ExPW1/15
iv. Insurance Policy 272200/21/2012/1052 ExPW1/16
v. JB Boda Survey Report dated ExPW1/20
22.11.2011
vi. Repudiation letter dated 20.03.2014 ExPW1/24
received by the plaintiff from the
defendantSecond consignment
i. Copy of Insurance Cover Note 308901 ExPW1/31
ii. Insurance Policy 272200/21/2012/918 ExPW1/32
iii. Copy of Insurance Cover Note 308907 ExPW1/33
iv. Insurance Policy 272200/21/2012/954 ExPW1/34
v. J.B Boda Surveyors Survey Report ExPW1/38
dated 02.11.2011
vi. Repudiation Letter dated 20.03.2014 ExPW1/42.
received by the plaintiff from the
defendant
Third Consignment
i. Insurance Cover note 308894 ExPW1/48
ii. Insurance Policy 272200/21/2012/873 ExPW1/49
iii. JB Boda Survey Report dated ExPW1/54
07.02.2011 & M/S G.P Dave & Sons
Surveyor
iv. Repudiation letter dated 20.03.2014 ExPW1/58
received by the plaintiff from the
defendant
Fourth Consignment
i. Insurance Cover note 319872 ExPW1/64
ii. Insurance Policy 272200/21/2013/1135 ExPW1/65
iii. JB Boda Survey Report dated ExPW1/69
25.03.2013 and S.K Chakraborty dated (collyl)
10.05.2013
( The report of S.K Chakraborty is not
referred to in the amended plaint datedKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 86 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
31.5.2024)
iv. Repudiation letter dated 20.03.2014 ExPW1/73
received by the plaintiff from the
defendantFifth Consignment
i. Insurance Cover note 311096 ExPW1/79
ii. Insurance Policy 272200/21/2013/42 ExPW1/80
iii. JB Boda Survey Report dated ExPW1/86
11.05.2012 and Turn report of Kesar
Terminals & Infrastructure Ltd. dated
07.05.2012
(The report of Tarun report of Kesar
Terminals is not referred to in the
amended plaint dated 31.5.2024)
iv. G.P Dave & Sons Survey Report dated ExPW1/87
04.05.2012
(The report of G.P Dave is not referred
to in the amended plaint dated
31.5.2024)
v. Repudiation letter dated 20.03.2014 ExPW1/92
received by the plaintiff from the
defendantSixth Consignment
i. Insurance Cover note 319890 ExPW1/98
ii. Insurance Policy 272200/21/2013/1219 ExPW1/99
iii. JB Boda Survey Report dated 19.3.2013 ExPW1/104
and S.K Chakraborty dated 30.04.2013
(The report of S.K Chakraborty is not
referred to in the amended plaint dated
31.5.2024)
iv. Repudiation letter dated 20.03.2014 ExPW1/108
received by the plaintiff from the
defendantSeventh Consignment
i. Insurance Cover note 319920 ExPW1/114
ii. Insurance Policy 272200/21/2014/45 ExPW1/115
iii. JB Boda Survey Report dated ExPW1/119
17.05.2013KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 87 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
iv. Repudiation letter dated 20.03.2014 ExPW1/123
received by the plaintiff from the
defendantEighth Consignment
i. Insurance Cover note 319871 ExPW1/129
ii. Insurance Policy 272200/21/2013/1134 ExPW1/130
iii. JB Boda Survey Report dated ExPW1/134
19.03.2013 & S.K Chakarborty survey
report dated 10.04.2013
(The report of S.K Chakraborty is not
referred to in the amended plaint dated
31.5.2024)iv. Repudiation letter dated 20.03.2014 ExPW1/138
received by the plaintiff from the
defendantNinth Consignment
i. Insurance Cover note 312113 ExPW1/144
ii. Insurance Policy 272200/21/2013/174 ExPW1/145
iii. JB Boda Survey Report dated ExPW1/151
09.07.2012
iv. Repudiation letter dated 20.03.2014 ExPW1/156
received by the plaintiff from the
defendantTenth Consignment
i. Insurance Cover note 319926 ExPW1/162
ii. Insurance Policy 272200/21/2014/141 ExPW1/163
iii. SGS Surveyor Report dated 07.03.2013 ExPW1/167
iv. Repudiation letter dated 20.03.2014 ExPW1/171
received by the plaintiff from the
defendantEleventh Consignment
i. Insurance Cover note 308915 ExPW1/177
ii. Insurance Policy 272200/21/2012/1039 ExPW1/178
iii. JB Boda Survey Report dated ExPW1/182
28.02.2011KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 88 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
iv. Repudiation letter dated 20.03.2014 ExPW1/185
received by the plaintiff from the
defendantTwelfth Consignment
i. Insurance Cover note 315819 ExPW1/191
ii. Insurance Policy 272200/21/2013/570 ExPW1/192
iii. Insurance Cover Note 318834 ExPW1/193
iv. Insurance Policy 272200/21/2013/711 ExPW1/194
v. JB Boda Survey Report dated ExPW1/199
26.11.2012 and S.K Chakraborty report
dated 04.12.2012
vi. Repudiation letter dated 20.03.2014 ExPW1/204
received by the plaintiff from the
defendantThirteenth Consignment
i. Insurance Cover note 312103 ExPW1/210
ii. Insurance Policy 272200/21/2013/76 ExPW1/211
iii. JB Boda Survey Report dated ExPW1/217
22.05.2012 and S.K Chakraborty report
dated 10.09.2012
iv. Repudiation letter dated 20.03.2014 ExPW1/222
received by the plaintiff from the
defendantFourteenth Consignment
i. Insurance Cover note 319904 ExPW1/228
ii. Insurance Policy 272200/21/2013/1369 ExPW1/229
iii. JB Boda Survey Report dated ExPW1/234
24.04.2013 and J.C Gupta report dated
07.05.2013
iv. Repudiation letter dated 20.03.2014 ExPW1/238
received by the plaintiff from the
defendantFifteenth Consignment
i. Insurance Cover note 319927 ExPW1/244
ii. Insurance Policy 272200/21/2014/142 ExPW1/245
iii. JB Boda Survey Report dated ExPW1/249
14.06.2013 and S.K Chakraborty reportKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 89 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
dated 10.07.2013
iv. Repudiation letter dated 20.03.2014 ExPW1/253
received by the plaintiff from the
defendantSixteenth Consignment
i. Insurance Cover note 298902 ExPW1/259
ii. Insurance Policy 272200/21/2011/1090 ExPW1/260
iii. JB Boda Survey Report dated ExPW1/265
10.03.2011
iv. Repudiation letter dated 20.03.2014 ExPW1/269
received by the plaintiff from the
defendantSeventeenth Consignment
i. Insurance Cover note 319914 ExPW1/275
ii. Insurance Policy 272200/21/2014/14 ExPW1/276
iii. JB Boda Survey Report dated ExPW1/280
06.06.2013 and S.K Chakraborty report
dated 10.07.2013
iv. Repudiation letter dated 20.03.2014 ExPW1/284
received by the plaintiff from the
defendantEighteenth Consignment
i. Insurance Cover note 319873 ExPW1/290
ii. Insurance Policy 272200/21/2013/1137 ExPW1/291
iii. JB Boda Survey Report dated ExPW1/295
25.03.2013
iv. Repudiation letter dated 20.03.2014 ExPW1/299
received by the plaintiff from the
defendantNineteenth Consignment
i. Insurance Cover note 308801 ExPW1/306
ii. Insurance Policy 272200/21/2012/378 ExPW1/307
iii. JB Boda Survey Report dated ExPW1/312
12.08.2011
iv. Repudiation letter dated 20.03.2014 ExPW1/ 316
received by the plaintiff from the
defendantKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 90 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Twentieth Consignment
i. Insurance Cover note 315818 ExPW1/322
ii. Insurance Policy 272200/21/2013/574 ExPW1/323
iii. JB Boda Survey Report dated ExPW1/328
26.11.2012 and S.K Chakraborty report
dated 04.12.2012
iv. Repudiation letter dated 20.03.2014 ExPW1/334
received by the plaintiff from the
defendant
100. One of the terms and conditions as mentioned in
the insurance cover notes ExPW1/13, ExPW1/15,
ExPW1/31, ExPW1/33, ExPW1/48, ExPW1/64,
ExPW1/79, ExPW1/98, ExPW1/114, ExPW1/129,
ExPW1/144, ExPW1/162, ExPW1/177, ExPW1/191,
ExPW1/193, ExPW1/210, ExPW1/228, ExPW1/244,
ExPW1/259. ExPW1/275, ExPW1/290, ExPW1/306
and ExPW1/322 is ” the insured named above having
this day proposed to affect the above insurance and having
paid the premium stated above the risk is hereby insured,
subject to the usual terms and conditions of the Company’s
Standard Policy’.
101. In the Insurance Policies ExPW1/14,
ExPW1/16 ExPW1/32, ExPW1/34, ExPW1/49,
ExPW1/65, ExPW1/80, ExPW1/99, ExPW1/115,
ExPW1/130, ExPW1/145, ExPW1/163, ExPW1/178,
ExPW1/192, ExPW1/194, ExPW1/211, ExPW1/229,
ExPW1/245, ExPW1/260. ExPW1/276, ExPW1/291,
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 91 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
ExPW1/307 and ExPW1/323, under the heading
‘Term of Insurance’ it is stated as under:
” The risks under this policy are covered as per
the following clauses, current on date of sailing or
despatch and / or other conditions/warranties
otherwise stated herein and attached hereto:-
Institute Classification Clause
Institute Cargo Clauses (A)
InstituteTpnd clause
Institute War Clause (Cargo)
Institute Strike Clauses (Cargo)”
102. In the evidence filed by way of affidavit by the
PW1 Ashok Kumar Maharshi, the reports of the
surveyors were given exhibit marks as ExPW1/ 20,
ExPW1/38, ExPW1/54, ExPW1/69, ExPW1/86,
ExPW1/87, ExPW1/104, ExPW1/119, ExPW1/134,
ExPW1/151, ExPW1/167, ExPW1/182, ExPW1/199,
ExPW1/217, ExPW1/234, ExPW1/249, ExPW1/265,
ExPW1/280, ExPW1/295, ExPW1/312 & ExPW1/328.
103. During the arguments by referring to the said
reports, Ld. Counsel for the defendant company tried
to make out a case that the losses in question are not
covered by insurance policies. These reports have been
filed by the plaintiff company but have not been
disputed by the defendant company also. Meaning
thereby, there is no dispute about these reports and
both the parties are placing reliance on these reports,
so the same are being considered.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 92 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
104. There are around Thirty reports of various
Surveyors namely J.B Boda Surveyors Pvt. Ltd.,
G.P.Dave & Sons, S.K Chakraborty and Associates,
J.C Gupta and Co. Pvt Ltd. and SGS . I do not deem it
appropriate to unnecessarily burden this judgment by
reproducing the final opinion given by all the above
named surveyors. Suffice would be to pen down the
crux of their opinion to understand and to appreciate it
in the right context. The opinion given by the said
surveyors is as under-
a) Opinion of J.B Boda Surveyors Pvt. Ltd. vide
ExPW1/20, ExPW1/69, ExPW1/151, ExPW1/217,
ExPW1/280, ExPW1/295:-
“The above shortage in our opinion, is attributed
tofollowing:
a)Transfer of product from shore tank to ship’s tanks
at the port of loading and from ship’s tanks to shore
tank at the port of discharge.
b) Operational loss.”
b) Opinion of J.B Boda Surveyors Pvt. Ltd. vide
ExPW1/38:-
“… loss could be attributed to following reasons:-
1. Remnant of cargo to vessel pipelines.
2. Cling-age of cargo to shore pipelines and
handling losses occurred during liquid cargo
operations.
3. Operation loss.
4. The cargo is volatile in nature.”
c) Opinion of J.B Boda Surveyors Pvt. Ltd. vide Ex
PW1/86, ExPW1/104, ExPW1/119, ExPW1/134,
ExPW1/182, ExPW1/199, ExPW1/249, ExPW1/265,
ExPW1/312 and ExPW1/328:- (reasons given for
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 93 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
losses in these reports are same and only there is
a difference of quantity of the product):-
“At the port of loading Bintuly, Malaysia, quantity as
per vessel’s tanks’ ullage. worked out to 2448.643 M/
Tons.; this quantity when compared with the Bill of
Lading quantity of 2459.072 M/ Tons., shows a
difference of (-) 10.429 M/Tons:, (0.424 %).
On arrival at Kandla quantity, as per vessel’s tanks’
ullage worked out to 2448.934 M/Tons., this quantity
when compared with the Bill of Lading quantity
2459.072. M/Tons., shows a difference of (-) 10,138
M/Tons., (0.412 %).
‘As per shore tanks’ out-tum, the recept quantity
worked out to 2439545 M/Tons., this quantity when
compared with Bill of Lading quantity of 2459.072
M/Tons.,.shows a shortage of (-) 19.527 M/Tons.,
(0.794 %), which could be partly attributed to the
above difference and partly to unloading loss.”
c) Opinion of J.B Boda Surveyors Pvt. Ltd. vide
ExPW1/234:-
“As per our attendance on board the vessel and also at
shore tanks’ difference of 3.899 M/Tons, between
Consignee’s Bill of Lading Quantity 524.145 M/Tons,
and shore out turn quantity 520.246 M/Tons. Could be
attributed to following reasons :
1. Due to difference in Load Port ullage quantity
against Bill of Lading Quantity.
2. Due to difference in discharge port Kandla
arrival ullage quantity against Bill of Lading
Quantity.
3. Remnant of cargo to vessel pipelines.
4. Cling-age of cargo to shore pipelines and
handling losses occurred during liquid cargo
operations.
5. Operation loss,
6. The product is volatile.”
d) Opinion of G.P Dave & Sons vide
ExPW1/54 :-
“We can not comment on the cause of shortage in the
consignment of Low Aromatic White Spirit of 5.749KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 94 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
M.Tons against Bill of Lading, as we do not know
basis of calculating the quantity and finalising Bill of
Lading at port of loading. Further upon scrutinising
the packing list related to Commercial Invoice No.
11/451 dated Kuwait, December 05, 2011, it is
indicated that Nett, capacity of the each ISO Tank
Container is 19,200 Kgs. if this quantity is taken in
account the total quantity of 12 ISO Tank Containers
works out to be 230.400 M.Tons Nett. resulting in 10
Kgs, Excess, while comparing this quantity with the
nett quantity of cargo ascertained by us as per
physical weighment on the weighbridge of M/s.
Kesar Terminals de Infrastructure Ltd., (Terminal-Il),
Old Kandia (Kutch). The insureds have not furnished
us any documents/ or clarification on what basis the
Bill of Lading have been finalised at Port of Loading.
Hence, underwriters are requested to verify this with
insureds prior to settling of claim”.
e) Opinion of G.P Dave & Sons vide ExPW1/87 :-
“The variation in reference height of shore tanks are
suggesting settling of tanks/deflection of bottom. The
tank farm is constructed on reclaimed soil & the settling
of tank is an on-going phenomena. In view of this, we do
not rule out possibility of the tank’s calibration rendered
erroneous.
The shortage in our opinion could be due to: –
1) Short Shipment of cargo from Port oF Loading Viz.
Bintulu (Malaysia).
2)Deviation. of reference heights of the shore tanks,
rendering tanks’ calibrations erroneous.
3)Adherence Loss / Evaporation Loss.”
f) Opinion of S.K CHAKRABORTY &
ASSOCIATES vide ExPW1/104, ExPW1/134,
ExPW1/217, ExPW1/249 and ExPW1/280 (
(reasons given for losses in these reports are same
and only there is a difference of the product) :-
“In our opinion, the shortage of Liquid Toluene
from the above vessel has been occurred due to
multiple operation/handling of the cargo as well as
vessel behavior which is mostly happened for thisKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 95 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
type of cargo.”
g) Opinion of S.K CHAKRABORTY & ASSOCIATES
vide ExPW1/328:-
“In this case arrival quantity at destination port
before discharge & load port quantity was tallyed
with each other-The shortage was found after
discharge from ship tank to shore tank, it means the
shortage was happened due to deviation of
reference height and or adherence loss-There is no
evidence of any Marine Peril activated when the
cargo was pumped from ship’s tank into the shore
tank i.e breaking of lines, overflowing of tanks,
abnormal leakage etc.In this case quantity brought
by the vessel was in fact pumped a received in
shore tank and shortage was not happened. due to
MarinePeril, there is no liability under the policy-
This is the normal shortage which is happen for
this type of liquid cargo.”
h) Opinion of J.C Gupta Co. Pvt. Ltd vide
ExPW1/234 :-
“The commingied quantity was received in Shore
Tanks at Kandla port. The quantity on board the vessel
and shore received was determined jointly by all
concerned surveyors.
Probable Cause of shortage may be attributed to the
following prevailing factors:
1. Vessel experience factor and shore tank
experience factor may have attributed to the
discrepancy in recording the quantity.
2. Cargo was discharged through pipelines and the
distance of Installations from oil Jetty where the
Vessel berthed was 3 Kms. Clingage, adherence
of cargo to the inner surface of vessels, cargo
tanks, bulk head and pipeline of the operation.
3. Evaporation losses – Sounding pipe covers of the
nominated shore tanks is kept open whilst the
cargo is being received into the shore tanks to
allow opening for air. This resulted in
evaporation losses, & erroneous tank calibrationKLJ Resources Ltd Date of Judgment 30.07.2025 (Page 96 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
cannot be ruled out since the tanks are located /
platform on reclaimed soil.
4. Transfer of product from shore tank to ship’s tank
at the port of loading and from ship’s tanks to
shore tank at the port of discharge.
5. In view of the cause of loss explained by M/s J.
B. Bode Surveyon Pvt: Ltd., the loss fails outside
the scope of the policy.”
105. The main cause of dispute between the parties is
the exclusion clause 4.2 of the Institute Cargo Clause
(A) ExDW2/A, which reads as under:-
” EXCLUSIONS
4. In no case shall this insurance cover
4.1…….
4.2 Ordinary leakage, ordinary loss in weight
or volume, or ordinary wear and tear of the
subject matter insured.”
106. Here it would be relevant to refer to the cross
examination of the witnesses examined by the parties.
During the cross examination, PW1 Ashok Kumar
Maharshi replied (Q.4 & 13 ) that the nature of loss in
the present insurance claim is Transit Operational
Loss. He further replied that such losses are routine in
nature Q.14). PW1 replied that the nature of goods
was in liquid form (Q.5). He further replied that the
chemical products went under the process of loading
and unloading two times till final measurement of
volume of chemical (Q.8).
107. Coming to the cross examination of DW1
Renuka Chaudhary, I may mention that even during
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 97 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
her cross examination plaintiff company failed to elicit
anything contrary to the stand of the defendant
company. DW1 also has deposed about certain facts
which are not in dispute like insurance policy taken by
the plaintiff company was ‘All Risk Policy’; Insurance
Policy is not a named peril policy; surveyors have not
recommended repudiation of the claim of the plaintiff
company or they did not point out any violation on the
part of the plaintiff company; the definition of
ordinary loss or ordinary leakage has not been
provided in the policy; the term insured peril has also
not been defined in the insurance policy etc.
108. DW1 Renuka Chaudhary during her cross
examination on being asked replied that shortage has
occurred during the transfer and nature of the product.
She further replied that in the repudiation
communications, the reason for shortage are deviation
of reference height or discrepancies in recording the
quantity and /or adherence loss or evaporation loss.
She categorically stated that the defendant company
was sure about the exact cause of loss and that is why
the claim was repudiated as per the surveyor report.
109. In addition to DW1 Reunka Chaudhary,
defendant company has examined S.K Chakraborty,
Surveyor as DW2, who has filed his evidence by way
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 98 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
of affidavit ExDW2/A. DW2 tried to prove his various
reports ExDW2/1 to ExDW2/8. During the cross
examination of DW2, the nature of questions put to
him was regarding qualification of the witness, the
obligation of the surveyor to submit the report within
30 days, the documents provided to him for carrying
out the survey by the defendant company and the fact
that DW2 had never visited the court physically etc.
110. If the aforesaid testimonies of these witnesses is
scanned, there would be no difficulty in arriving at a
conclusion that whatever losses were suffered by the
plaintiff company, it was Transit Operational Loss
even as per PW1 Ashok Kumar Maharshi. PW1
nowhere has stated that the loss occurred due to
marine peril. Thus, whatever the losses were suffered
by the plaintiff company, it was operational loss
during the transit and no marine peril has taken place
for which the defendant company can be held
responsible.
111. Additionally, the insurance cover notes
ExPW1/13, ExPW1/15, ExPW1/31, ExPW1/33,
ExPW1/48, ExPW1/64, ExPW1/79, ExPW1/98,
ExPW1/114, ExPW1/129, ExPW1/144, ExPW1/162,
ExPW1/177, ExPW1/191, ExPW1/193, ExPW1/210,
ExPW1/228, ExPW1/244, ExPW1/259. ExPW1/275,
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 99 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
ExPW1/290, ExPW1/306 and ExPW1/322 as noted
herein above clearly indicate that the risk has been
insured subject to usual terms and conditions of the
company’s standard policy.
112. The terms and conditions have been duly
reflected in the insurance policies ExPW1/14,
ExPW1/16 ExPW1/32, ExPW1/34, ExPW1/49,
ExPW1/65, ExPW1/80, ExPW1/99, ExPW1/115,
ExPW1/130, ExPW1/145, ExPW1/163, ExPW1/178,
ExPW1/192, ExPW1/194, ExPW1/211, ExPW1/229,
ExPW1/245, ExPW1/260. ExPW1/276, ExPW1/291,
ExPW1/307 and ExPW1/323 . Under the heading ‘
Term of Insurance’, it has been categorically
mentioned that the risks have been covered as per
certain clauses including Institute Cargo Clauses (A)
ExDW2/A. The said clause clearly says that Insurance
Cover shall not cover the ordinary leakage, ordinary
loss in weight or volume, or ordinary wear and tear of
the subject matter insured.
113. Further, even if it was ‘All Risk Policy’, there is
nothing on record suggesting that said clause is not
applicable. The term ” All Risk Policy”, no doubt, is
very wide but it has its own limitations. It does not
mean that all types of losses and damages are covered
under such type of policy. I am of the opinion that it
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 100 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
would not cover things that are inevitable or almost
certain to happen. Even under ‘All Risk Policy’, it was
the duty of the insured (plaintiff) to prove that the loss
suffered by it was fortuitous. In marine insurance
‘fortuitous acts’ referred to unexpected and accidental
events that cause loss or damage to the insured. The
examples of ‘fortuitous acts’ are storms or rough seas,
collision of ships, stranding or sinking, fire or
explosion, lightning, earthquake, piracy etc., which is
missing in the present case. Nothing has been brought
on record by the plaintiff company to show that the
loss to the plaintiff was caused due to any of the
fortuitous acts. Mere wear and tear in handling the
product would not come within the ambit of ‘
fortuitous acts’. The plaintiff company was under
obligation to connect the loss with any of the marine
peril which the plaintiff company has miserably failed
to do so.
114. It is pertinent to mention that certain types of
products, particularly the chemicals in liquid form,
which are there in the present case, would have a
natural tendency to leakage or loss in weight or
volume during the course of a voyage. Such ordinary
leakages or losses are expected to happen and the
same cannot be treated as fortuitous .The loss caused
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 101 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
to the plaintiff company in the present case even as per
the reports of the surveyors was basically an
operational loss or adherence loss. Meaning thereby,
the loss in the quantities of consignments were caused
by the natural characteristics of the chemical being
transported without any external influence.
115. Having reached the said conclusion, the
plaintiff company cannot be allowed to say that the
Institute Cargo Clause (A) ExDW2/A document was
never supplied to them at the time when the policies
were issued by the defendant company. In the cover
notes it is specifically mentioned that the insured i.e
plaintiff company has agreed to take insurance policy
subject to the usual terms and conditions of the
company’s standard policy. It is categorically
mentioned at page no.2 under the Terms of Insurance
that the Risk under the policy are covered as per the
clauses mentioned therein including Institute Cargo
Clause A ExDW2/A. Meaning thereby, the plaintiff
company is bound by all terms and clauses including
the Institute Cargo Clauses (A) ExDW2/A. That clause
clearly excludes the liability of the defendant company
under clause 4.2 which says that in no case shall this
insurance cover ordinary leakage, ordinary loss in
weight or volume, or ordinary wear and tear of the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 102 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
subject-matter insured.
116. It is true that as per the cover notes and the
insurance policies, the consignments were insured
from anywhere in India via any Indian Port (by sea)
but at the same time the insurance policies clearly
states that it agrees to insure the loss/damages or
liability or expenses subject to the clauses, endorsed,
conditions, warranties contained in the schedule and
attached thereto. As per the schedule, the risk cover
was ” from anywhere in the world (load port) to
anywhere in India via Indian Port, India.” Therefore,
the losses as suffered by the plaintiff company were
not covered under the insurance policy and excluded
by the clause of Institute Cargo Clause (A)ExDW2/A.
117. During the argument, one of the contentions of
the Ld. Counsel for the plaintiff company was that the
defendant company cannot be allowed to travel
beyond the grounds as mentioned in the letter of
repudiation. According to the plaintiff company if the
defendant company has not taken the plea of Institute
Cargo Clause (A) in the repudiation, in that
eventuality it cannot do so later on for rejecting the
claims of the plaintiff company. In this regard, reliance
was placed on the judgment passed in the case of
Saurashtra Chemicals Ltd. (Supra).
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 103 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
118. In the present case, it is an admitted fact that the
claims of the plaintiff company were repudiated vide
communications dated 20.03.2014 ExPW1/24,
ExPW1/42, ExPW1/58, ExPW1/73, ExPW1/92,
ExPW1/108, ExPW1/123, ExPW1/138, ExPW1/156,
ExPW1/171, ExPW1/185, ExPW1/204, ExPW1/222,
ExPW1/238, ExPW1/253, ExPW1/269, ExPW1/284,
ExPW1/299, ExPW1/316 and ExPW1/334. Again
without further burdening this judgment it would be
appropriate to refer to the main grounds/reasons of
rejection/repudiation as narrated in the aforesaid
communications, which are as under:-
I. There was no evidence of any insured marine peril
activated when the cargo was pumped from shore tank to
ship’s tank at the port of loading and the ship’s tank to
the shore tank at the port of discharge viz.breaking of
lines, overflowing of tanks, abnormal leakages etc. or
during voyage.
II. It was operational loss.
Iii. Shortage happened due to deviation of reference
height of the shore tank, rendering tank calibration
erroneous reference height. There was no evidence of
any insured marine peril activity.
Iv. Adherence Loss or Evaporation Loss .
V. Claim is not admissible or payable as there is no
voyage loss and whatever cargo loaded at the port of
loading has been delivered accordingly.
Vi. The claim is not tenable as loss amount falls with
policy excess.
119. The aforesaid repudiation communications are
making it clear that the claim of the plaintiff company
was scrutinized vis-a-vis terms and conditions of the
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 104 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
policy issued in addition to the report of the surveyor
and one of the grounds for repudiation was adherence
loss. In the said communication, it was categorically
stated that the shortage was not due to marine peril
hence, there is no liability under the policy. This is the
stand of the defendant company from the very
beginning. The Institute Cargo Clause (A) ExDW2/A
has been pressed into service by the defendant
company to show that the loss suffered by the plaintiff
company was not caused by any marine peril and
ordinary leakage or loss in weight or volume are
excluded from the Insurance Cover. It is true that the
aforesaid repudiation communications are silent in
referring to the Institute Cargo Clause (A) ExDW2/A
explicitly but in pith and substances the claims were
repudiated by the defendant company on the grounds
that the loss was not caused due to any marine peril
and ordinary or operational losses are not covered
under the insurance policy. Therefore, the contention
of the Ld. Counsel for the plaintiff company would not
help him much and no benefit of the said judgment can
be extended to the plaintiff company.
120. I have also gone through the judicial authorities
as relied upon by the Ld. Counsels of both the parties.
There is no doubt about the proposition of law as laid
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 105 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
down in those judgments with regard to certain issues
i.e interpretation of section 14 of Limitation Act; the
burden to prove exclusion clause lies on the insurer;
appreciation of surveyors reports; in case of doubt of
admissibility of claim, it has to be interpreted in
favour of the insured; the scope of ‘All Risk Policy’
and exclusion clause as contained in Institute Cargo
Clause (A)ExDW2/A; the value of second surveyor
report etc. and these principles as laid down, have
duly been considered. However, the same would not
extend any benefit to the plaintiff company as the
defendant company has been able to prove its case and
has discharged the burden placed on it.
121. In view of my aforesaid discussion, I am of the
considered opinion that the defendant company has
been able to establish that the losses suffered by the
plaintiff company were merely operational losses and
were not caused due to any marine peril during the
voyage of the consignments and it might have
occurred due to the handing of the material for which
the defendant company cannot be held liable. Thus,
this Court does not find any fault in repudiating the
claims of the plaintiff company by the defendant
company and consequently the plaintiff company is
not entitled to recover the amount, as prayed for.
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 106 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)
Hence, issue no. 3 and 5 are answered accordingly.
Issue no. 6
In case if issue no. 5 is decided in affirmative,
whether the plaintiff is entitled for any interest, as
asked for in the plaint? (OPP).
122. In view of my findings on issue no. 3 and 5 , the
question of awarding any interest does not arise. This
issue is also disposed off accordingly.
Issue No.7.
Relief
123. In view of my findings on issues no.3 and 5, the
present suit of the plaintiff company is hereby
dismissed.
124. There is no order as to costs.
125. File be consigned to record room, as per rules.
RAJESH Digitally
by RAJESH
signed
KUMAR KUMAR GOEL
Date: 2025.07.30
GOEL 16:00:56 +0530
(Rajesh Kumar Goel)
District Judge (Commercial)-02
Central, Tis Hazari Courts
30.07.2025
Announced in the Open Court
today i.e: 30.07.2025
KLJ Resources Ltd Date of Judgment 30.07.2025 (Page 107 of 107 )
Vs Oriental Insurance Co. Ltd (782/2023)