M/S. SBHOBIKA ATTIRE vs NEW INDIA ASSURANCE CO. LTD.

The Supreme Court, in this appeal under Section 23 of the Consumer Protection Act, 1986, addressed the dismissal of a claim for insurance compensation due to damages caused by riots. The Court held that the insurance company failed to settle the claim without justifiable reasons, emphasizing the obligation of insurers to act in good faith and process claims promptly. The Court directed the insurance company to pay the claimed amount, reinforcing the principle that insurers must not delay settlements based on unsubstantiated inquiries.