M/S. RAHEE INDUSTRIES LTD. vs EXPORT CREDIT GUARANTEE CORPN.(I)LTD&ANR

The Supreme Court addressed the interpretation of Clause 16 of the Specific Shipments (Political Risks) Policy, determining that when an insurer indemnifies the insured for a quantified loss, the insurer is entitled to a share of any increased recovery from the original contract, proportional to the indemnity paid. The Court upheld the Division Bench's ruling that the insurer (Corporation) was entitled to 90% of the increased recovery, affirming the lower court's decision to apportion the recovery in accordance with the policy terms. The appeal was dismissed, maintaining the insurer's rights under the contract.