M/S. SEA LARK FISHERIES vs UNITED INDIA INSURANCE CO.

The Supreme Court addressed the issue of insurance liability concerning a fishing vessel, 'Sea Lark', which sank after being insured by the respondent. The Court held that the insurer's repudiation of the claim based on alleged non-disclosure of the vessel's seaworthiness was erroneous, as the insurer failed to raise the issue of the master's qualifications in the written statement, denying the appellant the opportunity to respond. The Court reinstated the High Court's decree in favor of the appellant, emphasizing the importance of full disclosure and the insurer's responsibility in the underwriting process under the Insurance Act, 1938.