New India Assurance Co.Ltd vs Parakh Foods Ltd

The Supreme Court upheld the National Consumer Disputes Redressal Commission's decision that M/s. Cargil India Pvt. Ltd. was entitled to compensation of Rs. 1,70,72,876 for loss due to fire damage to soya bean stock, along with interest at 9% per annum from 1.1.2003. The Court clarified that the payment of an additional premium by the respondent modified the exclusion clause in the insurance policy, allowing for coverage of losses caused by spontaneous combustion. The appeal by the appellant was dismissed, affirming the National Commission's findings.