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. is entitled to compensation of Rs. 1,70,72,876 for loss due to fire damage to soya bean stock, as per the insurance policy terms. The Court clarified that the payment of an additional premium of Rs. 25,000 allowed for coverage despite the exclusion clause related to fermentation and heating. The appeal by the appellant was dismissed, affirming the National Commission's findings and the awarded compensation with interest at 9% per annum from 1.1.2003 until payment is made.