GENERAL ASSURANCE SOCIETY LTD. versus CHANDUMULL JAIN AND ANR.

GENERAL ASSURANCE SOCIETY LTD. versus CHANDUMULL JAIN AND ANR.

The insurer may validly cancel the insurance policy under Condition (10) if the risk or liability has not commenced or become inevitable. In this case, cancellation occurred before loss or liability under the policy began, and was therefore valid.

Parties
Appellant: General Assurance Society Ltd.; Respondent: Chandumull Jain; Respondent: Another respondent
Jurisdiction
India
Judgment Date
07 February 1966
Procedural Posture
Civil Appeal / Supreme Court Appellate Decision
Outcome
Appeal allowed; suit dismissed
Legal Topics
Contract Formation, Policy Cancellation, Reasonableness of Terms
Insurance Law Contract Formation Policy Cancellation Reasonableness of Terms

Case Brief

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Parties

General Assurance Society Ltd.

Appellant

Chandumull Jain

Respondent

Another respondent

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appellate Decision

Legal Issues

  1. 1 Applicability of Condition (10) of the Fire policy to insurance cover issued via cover notes
  2. 2 Reasonableness of Condition (10) permitting cancellation
  3. 3 Validity of cancellation by insurer before loss commenced

Ratio Decidendi

The insurer may validly cancel the insurance policy under Condition (10) if the risk or liability has not commenced or become inevitable. In this case, cancellation occurred before loss or liability under the policy began, and was therefore valid.

Court Disposition

Appeal allowed; suit dismissed

Orders

  • Decree passed by Divisional Bench set aside
  • Judgment of single Judge dismissing the suit restored