New India Assurance Company Ltd vs M/S Zuari Indsustries Ltd. & Ors

The Supreme Court upheld the National Consumer Disputes Redressal Commission's decision allowing the respondent's claim for damages under the fire insurance policy. The Court established that the proximate cause of the damage was the short circuit leading to a flashover, which constituted a fire event under the policy terms. The Court rejected the appellant's argument that the damage was solely due to thermal shock from the loss of electricity, affirming that the presence of fire was sufficient for the claim to succeed under the relevant insurance provisions.