M/S. HANIL ERA TEXTILES LTD. vs ORIENTAL INSURANCE CO. LTD. .

The Supreme Court addressed the dispute between the appellant manufacturer and the respondent Insurance Company regarding the applicability of fire insurance premiums after a fire incident. The Court held that the Insurance Company could not retroactively impose a higher premium based on post-incident inspections, as the appellant had complied with the initial terms and conditions of the policy. The Court emphasized that the insurance contract must be honored as per its original terms, leading to the conclusion that the appellant was not liable for the additional premium demanded by the Insurance Company.