TaxTMI 
TaxTMI 
2013 (1) TMI 1024
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....ational Consumer Disputes Redressal Commission, New Delhi, in Revision Petition Nos. 662, 663, 664, 665, 666, 667, 668, 669, 670, 671, 672, 673, 674, 933 of 2002 and 238, 246 and 247 of 2001. 2. Facts and circumstances giving rise to these appeals are that: A. The Appellant herein, Export Credit Guarantee Corporation of India Ltd., (hereinafter referred to as 'the insurer'), is a government company, which is in the business of insuring exporters. Respondent, M/s. Garg Sons International, on 23.3.1995 purchased a policy for the purpose of insuring a shipment to foreign buyers i.e. M/s. Natural Selection Company Ltd. of UK, and the said buyer committed default in making payments towards such policy from 28.12.1995 on....
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....behalf of the insurer, has submitted that the insured failed to communicate information pertaining to the default made by the foreign importer, to the insurer, within the stipulated period, which was fixed as 45 days from the date on which the payment became due, and thus, failed to ensure compliance with the mandatory requirement under Clause 8(b), owing to which, the claims with respect to which the said information was not furnished within the time period stipulated in the agreement, have wrongly been allowed. Moreover, it is evident from the judgment that only 5 claims made by the insured were accepted, and that 11 claims were rejected, though in the said order, only 9 claims were found to be rejected and 4 were shown as accepted. As th....
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.... overdue payments: The insured shall also deliver to the Corporation, on or before the 15th of every month, declaration in the term prescribed by the Corporation, of all payments which remained wholly or partly unpaid for more than 30 days from the due date of payment in respect of shipments made within the policy period and such declaration shall continue to be rendered to the Corporation even after the expiry of the policy period so long as any such payment remains overdue. Xx xx xx 19. Exclusion of Liability: Notwithstanding anything to the contrary contained in this policy, unless otherwise agreed to by the Corporation in writing, the Corporation shall cease to have any liability in respect of the gross inv....
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....ore, the endeavour of the Court should always be to interpret the words used in the contract in the manner that will best express the intention of the parties. (Vide: Suraj Mal Ram Niwas Oil Mills (P) Ltd. v. United India Insurance Co. Ltd. (2010) 10 SCC 567). 9. The insured cannot claim anything more than what is covered by the insurance policy. "...the terms of the contract have to be construed strictly, without altering the nature of the contract as the same may affect the interests of the parties adversely." The clauses of an insurance policy have to be read as they are... Consequently, the terms of the insurance policy, that fix the responsibility of the Insurance Company must also be read strictly. The contract must be read as a wh....
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....titude adopted by the court, by way of which it interferes in the terms of an insurance agreement, is not permitted. The same must certainly not be extended to the extent of substituting words that were never intended to form a part of the agreement. 12. The instant case is required to be considered in light of the aforesaid settled legal propositions. The requisite record reveals the factual matrix as under: 13. The aforesaid chart clearly establishes that the insured failed to comply with the requirement of Clause 8(b) of the agreement informing the insurer about the non-payment of outstanding dues by the foreign importer within the stipulated time except in two cases. 14. Thus, we are of the view that only two claims which are s....