M/S.Shobika Attire vs New India Assurance Co. Ltd. And Anr

The Supreme Court, in this appeal under Section 23 of the Consumer Protection Act, 1986, addressed the dismissal of a claim for insurance compensation following riots that led to significant damage to the appellant's textile showroom. The Court emphasized that the insurance company must act in good faith and cannot deny claims based on unsubstantiated allegations without proper inquiry. The Court held that the insurance company was liable to settle the claim for damages as per the terms of the insurance policy, thereby reversing the Commission's order.