GENERAL ASSURANCE SOCIETY Ltd. vs CHANDUMULL JAIN AND ANR.

The Supreme Court held that a contract of insurance was formed despite the policy not being delivered, as the letters of acceptance and cover notes indicated mutual agreement. The Court found that Condition (10) of the Fire policy, allowing for mutual cancellation, was reasonable and applicable, thus validating the insurer's cancellation prior to the loss becoming inevitable. The High Court's decree in favor of the respondents was upheld, confirming the insurer's right to cancel the policy under the stated conditions.