Texco Marketing Pvt. Ltd. v. Tata AIG General Insurance Co. Ltd.

Case snapshot

Sections / provisions: Insurance Contracts- Principles of Uberrimae Fidei and Doctrine of Blue Pencil; Adhesion contracts

Questions before the Court / Tribunal

• M/s Texco Marketing Pvt ltd Vs Tata AIG General Insurance Company Ltd & Ors (Supreme Court) Date-9th November, 2022 Sub-Whether an exclusion clause destroying the very contract knowingly entered, can be permitted to be used by a party who introduced it, becomes a beneficiary and then to avoid its liability? The Supreme Court of India in a classic judgement on 9th November, 2022 deciding against the insurance company in a claim relating to fire accident in a shop located in the basement opposite to the office of TATA AIG which fact was known to the Insurer. However, the insurer denied liability to pay in view of…
• What factual, statutory and procedural conditions control the relief?
• How does the operative order apply to the parties and the challenged proceeding?

Material facts and procedural background

1. The appellant secured a Standard Fire & Special Perils policy from the

only this shop of the appellant, but yet another shop similarly situated, was also

insured by respondent No. 1. The appellant continued to pay the premium

2. The appellant put up further construction, for which due notice was given and

appellant raised a claim. The surveyor of respondent No. 1 also made an

Appellant / assessee submissions

Heard learned counsel for the parties at length.

6. On the contrary, it is submitted by Smt. Shantha Devi R., learned counsel

8. This submission is sought to be answered by the learned counsel appearing on behalf of the insurer by adverting to the fact that SCDRC construed the terms of the exclusion. SCDRC, however, did not notice the decision of this Court, and hence, NCDRC was (it was urged) justified in correcting the error having regard to the law laid down by this Court. The learned counsel urged that the appellant has been insuring its goods for nearly ten years and it is improbable that the appellant was not aware of the exclusion.

Revenue / respondent submissions

The packaged judgment does not separately label the respondent's submissions in an independently extractable passage. No contention is inferred; read the full order.

Court / Tribunal analysis and reasoning

20. Allowing the claim, this Court held thus : (B.V. Nagaraju case (1996) 4 SCC 647] , SCC pp. 650-51, para 7)

Operative decision and relief

in F.A. No. 275 of 2016 stands set aside except to the extent of declining a sum

Ratio and legal principle

• The packaged judgment addresses M/s Texco Marketing Pvt ltd Vs Tata AIG General Insurance Company Ltd & Ors (Supreme Court) Date-9th November, 2022 Sub-Whether an exclusion clause destroying the very contract knowingly entered, can be permitted to be used by a party who introduced it, becomes a beneficiary and then to avoid its liability? The Supreme Court of India in a classic judgement on 9th November, 2022 deciding against the insurance company in a claim relating to fire accident in a shop located in the basement opposite to the office of TATA AIG which fact was known to the Insurer. However, the insurer denied liability to pay in view of…. The precise proposition must be read with the Court/Tribunal's reasoning and operative directions.
• Reliance depends on matching the statutory version, jurisdiction, procedural stage and material evidence recorded in the judgment.

Why this judgment matters

This decision is relevant to practitioners and affected parties dealing with m/s texco marketing pvt ltd vs tata aig general insurance company ltd & ors (supreme court) date-9th november, 2022 sub-whether an exclusion clause destroying the very contract knowingly entered, can be permitted to be used by a party who introduced it, becomes a beneficiary and then to avoid its liability? the supreme court of india in a classic judgement on 9th november, 2022 deciding against the insurance company in a claim relating to fire accident in a shop located in the basement opposite to the office of tata aig which fact was known to the insurer. however, the insurer denied liability to pay in view of… Its value lies in showing how the adjudicating forum connected the applicable rule to the proved facts and procedural posture.

Practitioner action points

• Match the statutory version, jurisdiction, procedural stage and decisive evidence before relying on the result.
• Verify current appellate, review and SLP history and any later amendment or controlling authority.
• Attach the complete judgment to the working paper or filing and cite the paragraph/page supporting the proposition.

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Section / provision impact

• Insurance Contracts- Principles of Uberrimae Fidei and Doctrine of Blue Pencil - apply the exact version considered in the judgment.
• Adhesion contracts - apply the exact version considered in the judgment.

Case network

Similar issue / useful comparison

• Pr. CIT v. Tata Power Company Ltd. - Bombay High Court
• Merchant Association v. ITO - ITAT Pune
• M D Sons & Ors. v. ITO (Special Bench) - ITAT Bangalore Special Bench

Different outcome / possible distinction

• Pr. CIT v. Persistent Systems Pvt. Ltd. - Dismissed
• CIT(E) v. Hyderabad Cricket Association - Operative order controls

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Full judgment and source control

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Source class: Sanitized official primary judgment copy · Repository status: Published